Land Economics in the Metaverse
Land Economics in the Metaverse
Gaming

Land Economics in the Metaverse

By Guest post - 7 Aug 2021

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Did you know that the science fiction novel “Avalanche” by Neal Stephenson published in 1992 is regarded as a bible by Zuckerberg and is widely circulated throughout the Facebook company.

This book describes a virtual world parallel to reality. The Metaverse where everyone has a custom Avatar, is parallel to the real world, interacts with the real world, and is always online. It is lifelike and immersive. The movie “Avatar” created a magnificent Genesis, and its inspiration also came from this.

There are two roads in front of human beings: one outward, leading to the sea of stars, and the other is inward, leading to virtual reality.

– Liu Cixin

With the maturity of AR, VR, applications of 5G, and AI autonomous generation technology, the improvement of wearable supporting hardware, and the formation of the blockchain economic system, the world in the novel is coming to us, and the users of Metaverse begin to make their own civilization.

The movie “Number One Player” depicts the meta-universe we yearn for. It has a fully operational economic system that spans across the physical and digital worlds. Data, digital items, content, and IP can all freely pass-through the meta-universe. Everyone in this world can enjoy the existing facilities, but also participate in the creation, thus enriching and prospering the entire universe.

When reality is in a low point and surrounded by pressure and frustration, people in the new era are more keen to explore the world in the Metaverse to achieve spiritual satisfaction and self-worth.

NFT game is the best carrier for Metaverse

In blockchain games, through smart contracts, users can freely control and control their own assets. The existence of distributed ledgers protects the account from the risk of theft. The open source code means that players can freely innovate, build, and become the creator of the game. NTF maps the assets in your hands to the physical world. With visualization and identity, virtual goods are transformed from services to transaction entities, thereby enhancing the emotional experience of users.

After several years of hard quenching, with the improvement of infrastructure and the increase of application scenarios, NFT games have gradually ushered in an explosion. The Nemesis, Decentraland, The Sandbox, Axie Infinity, Evolution Land, OVR etc. have shown the prototype of Metaverse and have begun to come under the spotlight.

Decentraland is a new continent built on Ethereum, allowing users to create, experience, and monetize content and applications. As the first game to introduce tokens, The Sandbox allows users to create, purchase and trade digital assets in the form of games. Axie Infinity introduces pet development and turn-based battles into the game, allowing users to make money while playing, realizing the self-circulation of the economic system. Evolution Land uses cross-chain bridges to allow assets in the game to interact across chains, realizing free circulation on multiple chains.

OVR is an Italian project dedicated to virtual worlds and NFTs. In less than 6 months, they have sold 260,000 OVRLands, so all these successes have led the team to the decision to burn 1% of its total supply, which currently stands at 1 million. They recently closed an interesting partnership with Chainlink to connect the virtual world with the real one thanks to their oracles.

Same as the reality, land is still the most sought after asset

In the past, land was used as a means of production and was the basis for human survival. Even if it has been long since human evolved out of the agricultural era, it is still a necessary means of living, let alone being endowed with currency storage value. Like the lousiness in the real world, the land of the virtual world has been hyped since its inception and has become the most hyped up asset in the entire ecology.

  • In June 2021, 9 virtual lands in Axie Infinity were sold at a high price of 888.25 ETH, which is approximately $1.5 million.
  • On June 9, 2021, Boson announced that it would purchase virtual real estate in the Vegas suburb of Decentraland at a market price of approximately $704,000, and plans to build a virtual shopping mall.
  • On June 18, 2021, digital real estate developer Republic Realm purchased 259 digital plots, or 66,304 virtual square meters, for 1.295 million MANAs, at a price of approximately $913,000.
  • In July 2021, the virtual land with an area of more than 5.3 million square meters (24*24) on The Sandbox was sold at a price of nearly $880,000.

After rounds of auctions and competitions, the price of virtual land has risen sharply, bringing huge returns to early investors.

The record for return of investment was a piece of land called “9 Robotis Route” on CryptoVoxels. The initial price was $101.2, and the current price has reached $9570.8. The land has only been resold 3 times, and it has reached a 93-fold increase.

CryptoVoxels:9 Robotis Route

Behind the soaring price is the land economics of each Metaverse.

Macro-control of the virtual world

Just like the real world currency proliferation, each additional issuance of stablecoins and the advent of a big bull market will inject liquidity into the virtual land, thereby pushing up the price and ushering in a chasing rise, further leading to a high bubble.

According to CoinMarketCap data, as of July 26, the total market value of stablecoins was $116 billion, which has increased nearly four times since the beginning of this year.

Market Capital of USDT increased 2 folds

With the additional issuance of stable coins, the price of assets of the virtual world have risen accordingly. Compared with the return rate of traditional assets or cryptocurrency, virtual land is more attractive to investors. In the form of NFT, the ownership is returned to the player, and each piece of land and each building is unique. Furthermore, all transactions are public, transparent and traceable, merrier than real-world transactions.

Economic ecosystem

In developed economic organizations, the degree of economic prosperity of each country is closely related to the organization in which it is located, and the economic base determines the superstructure, and the impact on land prices can be imagined.

Decentraland, The Sandbox, and Axie Infinity, as members of the ETH ecology, have gradually explored their own model after years of trial and error on the fertile land of Ethereum. Tens of millions of users on Ethereum have brought a realistic basis for their outbreak. It can be seen that all the record sales of land auctions this year were born from this ecology.

Data from Nonfungible.com shows that among the current top 10 most expensive NFTs, the virtual land in Decentraland and The Sandbox rank in the top ten with over $66 million and $31 million respectively.

As a leader in the Polkadot ecosystem, Evolution Land has received support from dozens of star projects inside and outside the ecosystem: Astar (formerly Plasm), BML community, Channels, Crust, Lendhub, Mao Dao, MDex, Metaventurer, Phala, Top DAO , YGG … all bought lands in the evolutionary planet to build communities. With the development of the evolutionary planet, there is a high probability that it will become the entrance to the game of the Polkadot ecology.

Infrastructure facilities

Just like a good shopping mall can pull up 20% of the surrounding land price, an infrastructure integrating entertainment, leisure, creation, social interaction, and learning can also affect the fluctuation of virtual real estate prices in each Metaverse.

After several years of construction in Decentraland, it now has all kinds of characteristic neighborhoods, including Genesis Plaza, the central event plaza, Vegas City that imitates Vegas City, Fashion Street full of fashion brands, and Festival Land, the city of parties. Chinese characteristic block Dragon City, forest green area Forest Plaza, punk attraction AETHERIAN project, game competition area Gamer Plaza, education area Decentrland University and so on. The existence of these scenes enriches the player’s virtual world and makes people find it hard to stop navigating.

Sandbox is becoming a major entertainment venue. Major brands are neighbors. Big IPs and celebrities can interact with fans and provide interactions including games, live performances and social experiences. It can be a digital concert stage, a theme park, or a shopping center. Players can visit and experience it by themselves or with friends. This is the reproduction of the Internet celebrity economy in the virtual world – the real life distance is too far away, but the virtual world are distance-less, and people can experience in a way they never had before.

The land in Axie Infinity is production-type land. After purchasing the land, players can mine AXS tokens and other resources, or rent them to third-party tenants to collect their mining share. In addition, players can also build buildings or operate shops to earn income. In addition, users can use the toolkit Lunacia SDK to develop NFT games and generate content on the land. Axie Infinity has a BOSS mechanism, a monster called Chimera will attack the Lunacia continent from time to time. Defeating Chimera will also get dropped resources and props, which can be used for upgrading land and Axie performance.

The addition of high-quality IP

The economy of the Internet is an attention economy. As Metaverse has grown in popularity in recent years, it has attracted many well-known IPs to invest in land or host events in the metaverse. At the same time, these IPs also attract players.

The well-known fashion sports brand Adidas once held a fashion show in Decentraland, and the auction house Sotheby’s also moved its iconic London gallery into Decentraland. Recently, some well-known musicians have joined the metaverse. For example, Chen Huanren, rock musicians Richie Hawtin, and Deadmau5 have joined The Sandbox. The Filipino players led by the YGG Game Association are the origin user groups that lead to Axie Infinity’s explosive growth, and they still account for 50% of the total number of users. Now that the YGG game guild has acquired land in Evolution Land and started production and operation, will YGG’s community empower Evolution Land to bring prosperity?

Open Traffic

We know that in history, there have been seclusion of countries that led to the decline of national power. The convenience of communication with the outside world also determines the value of this meta-universe land.

In the development process of the blockchain game Axie Infinity, the recognized catalyst is its exclusive Ethereum sidechain Ronin, which was launched in May, which completely dominated the outbreak in the past two months. With the increasing number of AXIE players and the increasing popularity of the game, the performance of ETH obviously cannot keep up with the demand. Due to the high gas fee in the bull market, it has always affected the player’s experience and cost, thus bringing obstacles to the introduction of new traffic. Compared with Ethereum, Ronin’s Gas fee is negligible, making it easier for more users to come in, thereby driving the growth of Axies and market turnover. Axies Infinity’s  daily active users (DAU) have soared from 38,000 at the end of April to 300,000 now.

Evolution Land, built on the Darwinia network, uses a decentralized cross-chain bridge network to connect to Polkadot, Ethereum, other chains, DeFi, NFT trading markets, games, etc. This allows assets of different ecology to be brought together with reduced costs, therefore enabling it to become a cross-chain traffic entrance. With the advent of the multi-chain era, the interaction of different ecosystems has become frequent, and Evolution Land will surely enjoy this dividend and usher in explosive growth.

Scarcity of land

In China, the method of restricting land supply is often used to macro-control the growth of housing prices. Then the scarcity of land in the major Metaverses will also be reflected in the price by supply and demand.

The main body of Decentraland is Genesis City. The size of Genesis City is 90,000 LAND (300*300), which has almost all the functions of a modern city. About 36,000 pieces of LAND are the infrastructure area built by the project party and cannot be used for sale. Only the remaining LAND will be sold to users.

There are a total of 166,464 (408*408) lands in The Sandbox, each of which is an ERC721 token. Players can purchase the land and use the tool Game Maker to develop and publish on their own, or they can rent land to other game developers. Maker does not need code knowledge to develop games, and the land can also be used to host other ASSET props or host events.

The Axie Infinity meta-universe land is called Lunacia, with a total of 90,601 plots. Each plot is a rare NFT, and the price of the plot varies according to the geographic location. Referring to the concept of Evolution Land elements, different types of land on the Lunicia continent can dig out resources of different elements, and then these element resources will have different uses in production and construction, and the introduction of element methods has also made some land more scarce.

 

Lunacia Land

Evolution Land contains a total of 26 lands, of which 24 lands contain 2025 (that is, 45×45) plots, and two special lands contain 7921 (22×360 + 1) plots, each plot is 100 meters x 100 meters. The total number of plots is 360×(135+44)+2=64442. Due to geomorphological factors, the number of auctionable plots will be less than the total number of plots.

Bird eye view of evolution land

The soaring price of virtual land has indeed attracted enough attention and stepped out of the box in the next step of the NFT wave, but the value support behind it still needs to be built on the prosperity of the metaverse itself. No amount of economics is as good as hard-working people. The future of virtual land requires a large number of users to develop and construct, build scenarios and expand the scale to realize the real Metaverse, and put our real world and imagined world into it.

Evolution Land – Game and Metaverse

In 1972, Will Crowther used FORTRAN to write a text adventure game, which is considered the world’s first computer game program.

Subsequently, various forms of computer games were born, and the form of expression changed from simple text adventures to visually impactful pictures, from 2D to 3D, from the screen to Augmented Reality and Virtual Reality.

During waves of technological progress, games are always at the forefront of exploration, because they are the most attractive carriers of people’s detached fantasies, which they become motivated and inspired to realize, just as we are looking forward to the day when the Metaverse in “Ready Player One” and “Cyberpunk” will become a reality.

Recently, the Axie Infinity game and Decentraland, Sandbox, and CryptoVoxels representing the Metaverse have attracted much attention, and there has been some  discussion around whether or not they are the prototype of the future “Ready Player One.”

Evolution Land was born from this practice. Its vision is to build a simulated virtual world that runs on the blockchain, using the fun of the game to draw players in, and the inclusiveness of the Metaverse as an oasis, allowing users to live and trade in a real economy. In this environment, players experience the development of blockchain technologies in a gamified way, from DEXs to Defi; mono-chain to multi-chain. This process of realizing the Metaverse through various communities is made a lot of fun through gamification.

The Flow of the Metaverse:

There is no doubt that Minecraft is an iconic game, even when it runs in its own sandbox, but it is also a perfect candidate for migration to a decentralized blockchain: Players are born in a randomly generated 3D world, and they can build on that world using textured material cubes, step-by-step.

Decentraland, CryptoVoxels, and Sandbox have grown up in the shadow of Minecraft, and they are all built on an open, borderless Metaverse. Any user who owns land on each can freely build the virtual world they want to, with the toolkits these games provide.

Because the Metaverse is decentralized, we believe that individual communities will work towards making their worlds better, and will come together to realize a common vision. Their collective outlook will give rise to the development of even more novel applications within the realms of gaming and economics.

Many of the current generation of games unfortunately lack gameplays and economics that make them fun, but Evolution Land has made progress towards doing just that. In Evolution Land, the functioning of the virtual world and economic system are inseparable and are designed to make playing to earn fun, and the integration of the Metaverse is happening before our eyes.

Optimized Dutch auctions:

Those who purchase assets in Evolution Land participate in what’s called a Dutch auction, and Evolution Land uses a slightly modified version. The optimized Dutch auction is similar to a typical Dutch auction where the price decreases over time, but it does not end when a bid is received. Instead, it enters a reverse Dutch auction phase. Only if no one else bids at a fixed higher price ( 10% ) within 30 minutes, does the bidder win the bid. Each time someone bids higher, the previous bidder receives a full refund, and a 10% premium is shared in the following ways:

  1. 4% of the premium is deducted as a handling fee.
  2. The remaining amount is divided equally between the landlord and the previous bidder.
  3. If a referrer is absent, the handling fee flows directly into the system’s revenue.
  4. If there is a referrer, they receive a 20% commission, and the remaining 80% flows into the system’s revenue.

Gamefi:

Evolution Land is not just a collection of NFTs. NFT lands and NFT apostles can help you gather more resources, and therefore earn higher income. The furnace is a common feature of the NFT synthesis system, and can be used in a variety of NFT and FT syntheses to generate new NFTs. This gamefies the rules, and using an external DeFi system for example using interstellar standard asset integration, Evolution Land can capture value and resources outside its own ecosystem. For example, RING/KTON and other resource-RING liquidity pool tokens can be used within the game to synthesize new and more powerful types of mining drills, which can greatly increase mining efficiency.

Liquidity:

Resources are the core assets of Evolution Land. They can be used for trading and upgrading NFT items, and In the future, there will be buildings and battle systems with resource consumption required at the core. Considering  the importance of liquidity in the game, abundance of resources is the most important link in the closed loop of the economic activities of Evolution Land. The launch of the farming function means that liquidity of the resources will grow, as it uses the Defi model to provide rewards for players who provide a liquidity pool. Players who need resources can purchase those resources from a DEX.

Multi-chain and cross-chain of Web 3.0:

We believe that the future blockchain world will not only exist as a mono-chain, but as multiple chains carrying out a variety of valuable functions, so Evolution Land will build continents on 26 different chains. The continents currently in use include Atlantis on Ethereum, Byzantine on TRON, and Dawning on the Huobi Ecological Chain. Next, the Columbus continent will advance our vision towards Darwinia’s Crab Network, and yet another continent on the Binance Smart Chain.

These continents on different chains are equivalent to different countries in our real world, and various trading and asset exchanges are carried out between them through import/export, and both resources and NFT assets circulate freely between different chains. Imagine the day in the future when we will see Cryptokitties and Polkapets from Ethereum Network circulating on Binance Chain, and earn DOT using BNB-element LP Token on the Huobi Ecological Chain. All of this will come to be true in the Evolution Land.

Revenue model:

70% of the system revenue of Evolution Land will be given back to players in different forms, including community contribution rewards, content incentives, lottery pools, etc. The other 30% developer reward pools, part of which will be used to repurchase resources periodically and refill the liquidity pool. This will share the game revenues with players so we build a game ecology together.

The form of the game:

Axie Infinity uses some industry best practices that are quite successful when applied to the blockchain world, breaking away from traditional content expansion for the purpose of increasing revenue. Instead, it enriches the game content, and allows players and manufacturers to share the benefit of game enhancement. When users increase → Axie ‘s demand increases → SLP demand as a childbirth fee increases → SLP prices increase → user income increases → which attracts more users, creating a perpetual cycle of growth based on their core gameplay. After high transaction fees and limitations to participation were reduced through the use of their Ronin sidechain and Scholar program, Axie achieved their scaling goals elegantly , which  resulted in a quantum leap in terms of user growth and popularity.

Axie’s success is undoubtedly very enlightening, but the game still has fundamental limitations centered around their core gameplay, so they are also expanding their boundaries and introducing the gameplay of Land ownership, similar to Evolution Land.

While Evolution Land is constantly improving its own gameplay, it is also breaking  ground when it comes to business gameplay, adding more interesting resources to the land, and making the game more inclusive and open.

One Dapp in one place:

In Evolution Land, players can freely upload Dapps, introductions and links to display on the land. In the V1 version, the pictures uploaded by the players appeared on the plots, and the V2 version will also have corresponding functions in the future that players will be able to toggle on and off. This also means that other projects can have their own territory in the Evolution Land, and users within the project’s community will be able to place drill bits on the community plots to mine resources. In the first phase of the community auction, Mdex , YGG , iNFT , BML community, and Metaverse expedition team all obtained land for their own communities in Evolution Land.

Evolution Land will be committed to the development, operation, and integration of blockchain games, and ultimately form a blockchain game ecology and a decentralized autonomous community ( DAO ). DAO is not only a design decision, but also a vision. The Evolution Land will be created and continue to evolve around a series of consensus rules, system variables, and laws, and designed to be self-evolving, extensible, and open.

The game will initially be set up with some basic rules, and with the furthering of the development progress and the expansion of the modules, the rules of the game will evolve as determined by all members of the DAO community. Each user is both a player and a designer of the game, for example, the third Evolution Land continent, Columbus, was  named using the community governance system.

Open game rules:

During development of online games in the past ten years, the typical payment method has turned them into consumables, requiring developers to continuously increase the amount of content in order to secure additional revenue. The high-quality equipment you brought with plenty of money will become useless after several versions. So we try to build a world, players can forge their own equipment, name it, decide the ability of it, and to always hold it. Also, the architecture system lets players build different kinds of buildings to make their own NFT treasure show and invite friends to view.

In Summary

Evolution Land has virtual land simulation at its core, perfectly integrating and bridging multi-chain assets, while allowing players to have fun playing to earn while engaging them in the blockchain Metaverse, which will allow it to grow and flourish as players and developers unleash their creativity.

Eve is still young, and Evolution Land will continue to evolve. Welcome, adventurer! http://www.evolution.land

 

 

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