Metaverse Tokens: Everything To Know
|— The Sandbox Metaverse is a virtual world powered by the Ethereum blockchain |
It lets you create your own ‘worlds’ and explore worlds created by other users.
— Ledger hardware wallets support SAND, LAND, and ASSETs, allowing you to explore The Sandbox Metaverse with confidence.
— While web2 metaverses are isolated ecosystems, web3 metaverses allow users ownership over in-game items and the chance to monetize experiences they create.
A metaverse is a virtual world where you can interact with others and with digital objects. Just like all worlds populated with a variety of people, metaverses need economies. In fact, all of the metaverses you know today already have them. For example, the biggest names in the game, such as Fornite, Roblox and Minecraft, have expansive economies with various in-game items and upgrades. In fact, users happily part with real money to upgrade their character or buy items on a daily basis.
But what happens when you don’t want to play that game anymore? What happens to your hard-earned skins and items? Well, simply nothing. Digital items in closed metaverse economies are stuck there. But imagine if you could sell them or even use certain items in another game.
Well, that’s what blockchain metaverses let you do.
Firstly, Metaverses on the same blockchain can read the same language. While not everything is interoperable just yet, they have this capability. And in the future, you may be able to use one item in several different games.
Further, since anyone can access the blockchain, these types of metaverses allow user-generated content: You could create your own items to use in the game. Or you could even create your own experience.
Metaverse and the Blockchain
Next, the blockchain is immutable. That means if a certain metaverse is no longer running, your in-game items still exist on the blockchain.
What’s more, you don’t have to let them sit there and rot. Since the blockchain is decentralized, you can sell them without the platform’s permission. This opens up entire creator economies, allowing users to monetize their creations.
So how do blockchain metaverses do this? Most metaverses use a token as their in-game currency. But tokens in blockchain metaverses aren’t just points in a closed system like they are in traditional metaverses. Let’s explore how:
What Are Metaverse Tokens?
Metaverse tokens are a form of cryptocurrency used within virtual universes. They are used for a variety of purposes, from providing access to a specific service to powering a decentralized application. Whatever the purpose, tokens are a key part of the Metaverse ecosystem. These coins are for purchasing goods, services, and products in the 3D world, or they can even grant users access to VIP features. Other metaverses even use these tokens as rewards and prizes for competing against other players.
Why Do Metaverses Have Tokens?
The metaverse is full of all sorts of different tokens, each with its own unique purpose, including governance, transaction fees, staking, and more. Metaverse tokens provide a means for users to participate in and support the network, while also enabling the development of decentralized applications and infrastructure.
To Provide a Currency for Buying and Selling In-game Items
Most blockchain metaverses offer users the chance to buy and sell in-game items for their own coin or token. Items can range from simple objects to wearables to even pieces of land. Whereas the coins in Web2 metaverses are stuck in the game, blockchain metaverses use crypto tokens or coins. This allows people to swap their earnings for fiat currencies such as Euros or Dollars..For example, in The Sandbox Metaverse, you can buy and sell wearables and skins on their marketplace using the Sandbox token (SAND). SAND is an ERC-20 token, meaning it’s not a coin, but a token on the Ethereum Network.
To Facilitate Decentralized Governance
Another reason metaverses use coins or tokens is for decentralized governance. To operate a decentralized metaverse, you need to have a Decentralized Autonomous Organization (DAO). This DAO will use tokens as votes, allowing active members to decide on the platform’s future. For example, Decentraland operates a DAO which allows users to vote on proposals using a token named MANA.
Examples of Metaverse Tokens
Now you know the different types of metaverse tokens there are, let’s look at how some projects are using them today. You may be familiar with how tokens work on the surface, but coins and tokens have many more novel use cases in the metaverse. So, let’s dive in and see what the most popular metaverse tokens are and what they offer.
APECoin is a token specifically for the Yuga Labs Ecosystem. To explain, Yuga Labs are the original creators of the popular NFT project, The Bored Ape Yacht Club. These NFTs have gained immense popularity since their launch in April 2021. Yuga Labs’ subsequent NFT releases, such as Bored Ape Kennel Club and Mutant Ape Yacht Club, saw similar success, as did their acquisition of CryptoPunks and Meebits. As a result, Yuga Labs set their eyes on creating a metaverse. They announced the launch of The Otherside in 2022, offering an interconnected metaverse experience that merged the universes of their NFT brands.
The only way to purchase land from this metaverse, being your only ticket to entry, was with APECoin. The initiative was wildly successful, with Yuga Labs selling 55,000 Otherdeeds and bringing in around $320 million in primary sales.
The Sandbox Token (SAND)
SAND is the in-game currency of the Sandbox metaverse. The Sandbox Metaverse is a virtual world where you can create and experiment with game designs.
You can use SAND to purchase objects and avatars in The Sandbox Metaverse. With over $144 million in gross merchandise value and investments of more than $93 million from SoftBank Vision Fund 2, it’s no surprise that The Sandbox became one of the top names in virtual real estate. Thanks to partnerships with Adidas and others, The Sandbox continues to be a popular platform for gaming enthusiasts, thus SAND is still one of the top metaverse tokens to acquire.
Decentraland Token (MANA)
MANA acts as both an in-game and governance token of the Decentraland metaverse. The Decentraland metaverse is a virtual world where users can buy, sell, or lease land. Firstly, MANA can be used to purchase virtual land, wearables (avatar accessories), and other virtual goods and services in its marketplace and in-game. Secondly, MANA allows users the chance to participate in Decentraland’s Governance system. Essentially, MANA holders can vote on matters related to the development and direction of the platform. MANA is an ERC-20 token, meaning it operates on the Ethereum blockchain. The total supply of MANA is capped at 2.7 billion tokens, with over 1.5 billion currently in circulation.
Wilder World (WILD)
WILD is the native token of Wilder World, an immersive 5D metaverse, developed with Ethereum, Unreal Engine 5, and ZERO. This metaverse offers a unique Liquid NFT Metaverse marketplace that you can explore to buy and sell digital art. The WILD coin is used as a governance tool within the Wilder DAO, granting stakeholders voting power and providing incentives for the development of protocols, services, and virtual entities that expand the Wilder Metaverse. In other words, WILD serves to further the ambitious mission of creating an expansive virtual world.
ILV is the currency for Illuvium, an open-world role-playing video game (RPG) that harnesses blockchain technology. Here you have the opportunity to search for Illuvials as you journey across the gaming landscape. You can even earn ILV currency as a reward for your performance. It also allows you to take part in community governance.
In 2021, ILV experienced a remarkable trajectory of growth – increasing almost steadily during the year and doubling in value towards the end of the year. Illuvium also raised an impressive $5 million from investors, which let them build the world’s first NFTs platform integrated with fantasy battle games.
How To Keep Your Coins and Tokens Safe
When it comes to cryptocurrencies, security is paramount. Ledger provides safe and practical solutions for exploring the metaverse. Our hardware wallets are designed to store digital assets securely, offering you the necessary protection while allowing you to interact in virtual worlds with confidence. Our devices make signing transactions and storing digital assets easier than ever before.