Since Mark Zuckemberg announced Meta and the efforts to create a metaverse for its users, some particular tokens in the blockchain world have literally exploded, setting new highs and perhaps ushering in a new trend. This is the case, for example, with SAND and MANA, the two utility tokens of The Sandbox and Decentraland projects, which aim to create metaverse through a shared map in which users own virtual land. So how do these projects work? What is the tokenomics behind them and how do they use NFTs?
Decentraland defines itself as a virtualreality platform created on the Ethereum Blockchain that allows users to create, experience and monetise content and applications. Within this virtual world, users purchase pieces of virtual land that they can then navigate, build and monetise.
The Sandbox, on the other hand, is a very similar game: it too is based on a virtual world that allows users to create, build, buy and sell digital goods in the form of in-game items. By combining non-fungible tokens with DAOs, Sandbox creates a decentralised platform for a gaming community that is constantly evolving and expanding.
Both projects use two types of tokens, defining an almost standard tokenomics for the crypto games world, i.e. a utility token alongside NFTs. The utility tokens are developed with the ERC-20 standard and have various functionalities within the game. Objects on the other hand are ERC-721 and represent two types of assets: LANDs and #digital objects owned in the metaverse. LANDs represent the coordinates of the terrain owned by a user and are fully modifiable and visitable, while objects are decorations used to customise one’s terrain or character.
Credits Gianmarco Guazzo
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