Decentraland is a blockchain-based digital universe that allows users to create, explore and experience real-world life situations in virtual space.
In Decentraland, you can visualize yourself living in a virtual universe containing customized digital items, real estate parcels, and lands where you can smoothly move from one place to another while socializing in real-time with hundreds of others in the same place as you.
This Decentraland guide covers the following topics:
How Does Decentraland Really Work?
Decentraland metaverse is a three-dimensional (3D) virtual world where users can interact with each other using specialized avatars that represent unique ownership or brand to provide digital solutions. The platform has a vast map that contains 90,601 single plots of virtual land, and each of the plots consists of 16×16 meter squares.
Presently, there are 39 developed districts in this virtual world, including Aetheria, also called Cyberpunk, Vegas City, and Dragon City. Each district is better known for its unique theme and there’s certainly something for everyone.
Decentraland allows users to socialize within these districts, play games, attend events of different types, concerts, gamble at the casino, play poker, and mini-golf, become an estate investor, and participate in politics among others.
With the thousands of creators and developers on this platform, the possibilities of things you can do are endless. You just have to find your spot and establish your brand.
However, to access Decentraland metaverse and explore the applications within its ecosystem, users need to first purchase MANA, its ERC-20 governance token which can be used to buy LAND and pay for goods and services on the platform.
MANA is used in Decentraland’s marketplace where users can trade in-house assets like estates, avatars, wearables, and unique domain names. MANA can be purchased directly from the platform or from centralized exchanges like Binance, Coinbase, and Crypto.com.
To use the marketplace, users are mandated to pay a fee of 2.5% worth of the selling item in MANA which is later destroyed to reduce its supply.
This means that the amount of MANA burned depends on the activities in the marketplace.
Speaking of purchasing properties, the land parcels on Decentraland are represented by its ERC-721 token known as LAND.
LAND is an Ethereum-based non-fungible token (NFT) that represents ownership of parcels (land) in the virtual reality world. The digital asset is designed to keep records of content and references that describe applications that can be built on the land parcel.
The token allows holders to build and host content such as games and other collectibles for others to explore. Although both LAND and MANA operate differently, they work together to secure the ecosystem.
The Decentraland DAO
Decentraland is also run by the Decentralized Autonomous Organization (DAO), which enables token holders to vote directly on principles within the metaverse.
The governing protocol also has its own MANA treasury to fund its decisions and operations. This means that no one can be president or even a district mayor of the platform but you can suggest policies, upgrades, or make a reasonable proposal to improve the virtual world.
To become a part of the DAO, users must convert their tokens (MANA) into a wrapped MANA (wMANA) before delegating it to the DAO. Each of the locked tokens represents one vote proposal, meaning the higher the tokens committed, the better the chance of winning the vote.
Unlike MANA, LAND is not required to be locked up in DAO before being used to cast a vote. Each LAND contains 2000 votes and can easily be converted into a single Estate token.
Yes. Decentraland is one of the popular metaverse platforms built on the Ethereum blockchain that is free to play by everyone. The metaverse sector has a reputable user base and is still growing as more projects continue to dive into the Web3 ecosystem.
As a metaverse project, Decentraland has become a chosen destination for most game lovers and content creators. It hosted about 300,000 active monthly users at the end of 2021.
Since the Decentraland launch date in February 2020 by software developers Ari Meilich and Esteban Ordano, many businesses have secured a place in the digital universe to provide their offerings to their online audience.
Earlier this year, the popular American technology company Samsung launched a digital version of its Samsung 837 physical store located in Manhattan, New York, on Decentraland. The new online store, dubbed Samsung 837X, marked the company’s first entrance into the world of virtual reality with plans to explore other opportunities.
Samsung’s store will offer digital experiences through its Connectivity Theater, Sustainability Forest, and musical events at the Customization Stage. This is where all the games, product introductions, and live performances will be hosted.
In 2021, sporting goods powerhouse Adidas also bought LAND in Decentraland where it plans to list branded content, experiences, and items for purchase.
Although the company has yet to disclose its full plans for the metaverse store, it describes it as an open world with immense possibilities of things to come and where users would be rewarded for their original ideas and content.
Decentraland has also attracted railroad magnets like JP Morgan, making it the first American bank to enter the world of Metaverse. The financial firm opened its lounge, named after Onyx, an Ethereum-based exchange, in February 2022.
International accounting company PricewaterhouseCoopers (PwC) also purchased LAND on the Decentraland metaverse where it plans to provide its services coupled with innovative business models to its customers.
Other businesses like Atari, one of the early adopters of video games, also own a virtual property on the platform where users can play games and attend business conferences. The game developer business also plans to expand digital gaming opportunities across other users in the metaverse.
Similarly, the New York-based international broker for fine and decorative art Sotheby’s recently opened a virtual gallery on the platform and ultimately Coca-Cola recently celebrated International Friendship Day in the virtual world with more businesses still planning to come onboard.
How to Buy LAND in Decentraland
As one of the most popular metaverse platforms in the world, users buy LAND on Decentraland for investment or lending purposes (LAND owners can rent the land for others to use to earn passive income) or develop games and other businesses on the platform.
There are two ways users can acquire LAND on the platform: You can do so on the official Decentraland marketplace, or explore other NFT marketplaces like OpenSea to purchase your parcel. Either way, here’s a complete guide on how to buy assets in Dencentraland.
- Sign up for Decentraland
To access the virtual world and its marketplace, first-time users are required to create an account on the platform. To do this, go to the official webpage and click on sign up. Once done, you will need to link your wallet address in order to access the metaverse.
If you already have an account, then skip this phase and sign in with the details you supplied while creating the account.
- Choose a parcel of LAND
Once you have successfully created your account and can now access the marketplace, it’s time to make your purchase. Scroll through the available pieces of LAND that align with your budget.
After you have selected the virtual property to buy, click on it to read more about it. You will find in-depth information in the description, like the name, the owner, and the creator. Click on buy when you are done reading to proceed with the transaction.
If you didn’t connect your wallet in the beginning after creating the account, now would be the best time to do so as the LAND will be sent directly to your wallet as an NFT after purchase.
Decentraland supports wallets such as MetaMask and Trust Wallet. Remember to have enough MANA that will be enough to buy LAND and also pay for the gas fee.
Once you have completed the purchase from the marketplace, it’s time to check your wallet to confirm if you received the LAND.
If you are using a Trust wallet, go over to collectibles to check your newly acquired assets and under NFTs if you are using MetaMask.
How to Make Money in Decentraland
You can make money in the Metaverse and Decentraland is no different. Users can decide to work for the companies on the platform to receive a salary, work as a freelancer or create wearable items to sell and make good returns.
Aside from this, there are other ways users can earn passive income from the platform.
Just like in the real world, real estate agents engage in buying and selling houses for a profit. Decentraland’s users can also do the same by investing in LANDS and selling them once their value increases. This is one of the common ways people make money on Decentraland.
The total supply of LANDS in the virtual world is fixed at 90,000 and the lowest price for one is around 5,000 MANA at approximately $14,000.
However, LANDS located close to the popular districts like the Crypto Valley and Vegas City is more expensive than others.
The value of LAND increases as more users continue to buy them. This is why you can make money by holding them. At launch, the value of LAND was around $20 per parcel and early adopters have earned significant ROI since then.
Play-to-earn games are another way to make money on Decentraland. The virtual world allows users to…