Decentralized autonomous organizations (DAOs) are individuals that collectively organize in social applications and blockchains to pursue common goals and interests.
As the direction of the Metaverse keeps maturing, DAOs are rallying around the prospect of utilizing and investing in the Metaverse. Seeing that Goldman Sachs placed an $8 trillion valuation on the sector, eyes and ears have peeled into the possibility of accessibility, usability and monetization of these virtual worlds.
Owners of digital land in the Metaverse tout some of the most recognizable names like Adidas, Nike, Snoop Dogg and JPMorgan. These entities are investing in the digital land and aligning themselves with the movement toward Web3 to better connect with consumers.
However, the biggest barrier to joining the digital landrush is cost. DAOs are searching to create more equitable means to invest in and utilize these virtual worlds.
DAOs could potentially assist with onboarding new entrants to Web3 in a substantial way by making engaging with digital land more accessible. This means exploring the means to share, rent and invest in digital land in the Metaverse.
NFTs are the new keys to digital land
In 2021, the two largest metaverse platforms, Decentraland and the Sandbox, made a combined total volume of approximately $460 million in digital real estate. These are not the only metaverses users are turning to. Blockchain games like Axie Infinity are building out their respective metaverses within their land gameplay in order to yield valuable resources.
At the current prices of digital land across all metaverses, however, many investors are priced out. In Axie Infinity, the cheapest land plot is roughly 2.2 Ether (ETH), or $5,550, and the most expensive currently stands at 10,000 ETH, or $25,254,275. The range in prices come at the land’s speculated value based on its location. Similar to the real estate in real life, location holds a lot of value in the Metaverse, where users strategically try to position themselves to benefit.