Metaverse has been the latest buzzword in the crypto space in the last few years. Since Meta revealed its plans to create a graphically appealing and immersive virtual environment that is equally accessible to everyone, the number of metaverse platforms has risen significantly.
However, with names like Decentraland, it is certainly possible for humans to live in a new world, the virtual world. Meanwhile, for many people, experiencing the impossibility of a virtual world is a dream come true. For others, investing in virtual real estate is another blue chip.
Decentraland is one of the many metaverse platforms seeking to take gaming and virtual reality to another level. In this article, you’ll learn about Decentraland, its economy, and how to rent land in Decentraland.
What is Decentraland?
Decentraland is a popular Ethereum-based decentralized, three-dimensional metaverse virtual world created by a group of developers in 2016.
Since its creation, Decentraland has served as an open world that focuses on free ownership of ecosystem contents.
Decentraland started as a pixelated 2D world and has since grown into a 3D ecosystem to enhance user experience. It is a world of limitless possibilities that allows creators to generate user content and environments.
In Decentraland, users can generate and share content. It also has a social feature that allows community members to interact seamlessly. Meanwhile, users can also participate in play to earn games to earn extra bucks.
Decentraland provides an enabling platform for a shared virtual world. It features a decentralized ledger for free ownership of real estate assets.
It also has a protocol for describing real estate contents and a P2P network for connecting its users.
Decentraland protocol comprises three distinctive layers; the consensus layer, the content layer, and the real-time layer.
Decentraland’s ecosystem has a well-established economy and DAO system. The two main currencies of the metaverse are MANA and LAND, which are fungible and non-fungible assets. Free ownership of assets is one of Decentraland’s greatest perks.
Users can freely own real estate and token assets that are managed through smart contracts on the Ethereum blockchain.
Decentraland Economy: LAND and MANA
The MANA tokens are an ERC-20 currency that controls financial activities in Decentraland. It plays an essential role in stabilizing transactions within Decentraland.
For instance, MANA is used for interacting with other users, exploring Decentraland, and customizing assets.
It also fuels the DAO system of the ecosystem. This allows MANA holders to participate and make crucial decision-making processes, including policy updates, improvement, and auctions.
MANA is also used for making various ecosystem and in-game purchases like buying or renting LAND and buying in-game or utility assets.
LAND in Decentraland
Decentraland’s ecosystem is powered by a vibrant economic system. The currency fueling economic activities is MANA, an ERC-21 token.
However, the real estate system of Decentraland is the most important aspect of its economy. Its tokenized real estate comprises LANDs that constitute ESTATE.
Essentially, LANDs are ERC-721 NFT assets that players can freely own and use to develop in-game content. Every LAND in Decentraland has its unique attributes and traits. Location is usually distinguished by the x,y Cartesian coordinates system that serves as unique markers. Uniqueness is also influenced by the closeness of a LAND parcel to popular areas in Decentraland.
There are a total of 90,601 LAND parcels in Decentraland, and each measure 16 meters by 16 meters in size. Meanwhile, LANDs are divided into different categories within Decentraland; there are 43689 private LANDs, 33886 district LAND, 9438 LANDs for roads, and 3588 LANDs for plazas.
LANDs provide a passive or additional revenue generation system for Decentraland users. It also serves as a real estate investment that allows users to profit off structural developments on their LAND.
For instance, other users can rent LAND for a certain amount of MANA token. Also, real estate investors can build unique structures such as game centers, businesses, properties, parks, and even landscapes on their LAND.
Unlike Avatars which are must-haves for every user, having or owning LANDs is not compulsory. There is a rental system that allows users to rent LANDs.
How to Earn With Land in Decentraland?
As mentioned earlier, LANDs are valuable real estate assets. However, an increase in LAND value does not come from time-based investment or its location only but also from how developed the land is.
There are many options to choose from when developing a LAND. In order to improve LAND value, owners can create interesting content, digital art, or exciting games that can keep other users engaged while spending their MANA tokens.
It can even be used to create casinos, gaming sites, brand content, music concerts, or venues; just anything that can enhance user participation.
Unfortunately, LAND is quite expensive, especially for newbies who are just getting into the game. A LAND parcel goes for a minimum of $2,700 on Opensea secondary marketplace.
Meanwhile, LAND owners can become landlords by renting out their LAND to other users. Therefore, users who want to develop the land but cannot afford to buy one can simply rent it.
How to Rent Out Land in Decentraland?
Renting out Land is not possible within Decentraland. However, there are third-party marketplaces that offer Decentraland LAND renting services.
The recommended rental platform from Decentraland is Double Protocol. You can also rent out Land on other platforms, including DCL Renting or Decentraland Property Group.
Steps to Rent Out LAND in Decentraland’s Double Protocol
Double Protocol is Decentraland’s recommended rental platform that allows Decentraland users to Rent or Lend LAND and other in-game NFTs.
One thing you might be wondering about with rental services is ‘Who owns the ownership?’
Double Protocol works by providing a platform where landlords can rent out their NFT without transferring ownership.
It does this by creating a doNFT which represents the LAND NFT but has a validation period. In other words, doNFTs are minted when a user wants to rent for a period of time.
Therefore, the doNFT of the LAND expires once its rental period is over. For instance, if you rent land for two months, a doNFT will be minted, and it will expire after the two-month period.
Meanwhile, a renter can build anything on the doNFT of the LAND. Also, they can even rent it out to another person.
Therefore, with Double Protocol, a tenant can become a LANDLORD by renting the doNFT out to another user again.
Furthermore, a tenant can split their doNFT’s duration or even merge it to an extensive duration.
To rent out your LAND with Double Protocol, connect your wallet to the platform and list out your LAND for rent.
Here’s how to rent out Decentraland LAND with Double Protocol:
- Visit the Double Protocol rental website and connect your wallet
- Click on the ‘LEND’ button and select the land you wish to rent out
- Approve the contract by signing the wallet prompt
- Enter the daily rental price and tap ‘Confirm’
1. Visit the Double Protocol rental website and connect your wallet
Go to the Double Protocol rental platform by visiting double.one on your web browser.
On the homepage, click on ‘CONNECT WALLET’ in the top right corner to link the wallet holding your LAND NFT to the platform.
Sign the connection in the prompt that pops up in your wallet.
Once you’re connected, click on the LEND button on the home screen to rent out available LAND NFTs in your wallet.
Choose the preferred LAND you want to rent out and tap LEND.
3. Approve the contract by signing the wallet prompt
In the window that pops up, approve the doNFT contract by tapping the APPROVE button. Confirm the process by signing the wallet prompt that pops up.
4. Enter the daily rental price and tap ‘Confirm’
Once the doNFT has been created, input the daily rental price and tap ‘Confirm’ to submit your listing in the rental market.
After the LAND has been rented, you’ll see the rent-out information on your dashboard.
You can also edit or cancel your listing to redeem your LAND NFT.
Steps to Rent Out LAND in Decentraland’s DCLRenting
DCL Renting is another Decentraland LAND rental platform that allows you to lend or rent LAND.
Renting service in DCL Renting works similarly to that of Double Protocol.
All you have to do is create an account and list your LAND for rent.
Here’s how to rent out land in DCL Renting:
- Visit DCL Renting website and connect your wallet
- Sign up on the platform by verifying your email
- Go to ‘My Lands’ and list your land for rent
1. Visit DCL Renting website and connect your wallet
On your web browser, visit DCL Renting at dclrenting.com. This will prompt you to connect your wallet to the website.
Sign the connection in the wallet holding your LAND NFT to link it to DCL Renting.
2. Sign up on the platform by verifying your email
Once you’re connected, you must sign up before proceeding to rent out your LAND.
On the homepage, input your email address in the field provided for email sign-up. Then click on SIGN UP.
After approving the sign-up in your wallet, a verification code will be sent to the email address you provided.
Input the verification code sent to your mail in the space provided for you to verify the email.
3. Go to ‘My Lands’ and list your land for rent
After creating an account, go to MY LANDS to start monetizing your LAND and rent it out.
Select the LAND you want to rent out. Input price tag and follow on-screen instructions.
Complete land listing by approving wallet prompt.
Is Investing in Decentraland LAND Profitable?
Investing in Decentraland LAND works closely with real-world real estate investment. Meanwhile, the value of LAND and its profitability depends on location.
The value of your LAND depends on how close it is to popular locations like Genesis, Dragon City, or Crypto Valley.
Apart from this, you can choose to develop your LAND by hosting different content to generate a revenue stream that users all over Decentraland can engage in. Renting is also highly profitable as it helps generate a passive income stream from tenants.
When you’re buying or renting real estate assets in Decentraland, it is important to assess the area and get baseline data on the value of the real estate in the area.