I am a creator in Decentraland that don’t have any financial background, so it really should not be me who posts this topic. However, I think we need to raise awareness of this topic as no one is focusing on this direction.
We know that Decentralnd needs traffic, so when did Decentraland have the most active period? it was when MANA was around 3-5 USD, land was pretty expansive back then as well. And it was at that time, a lot of the current OG creators come in and started to operate.
As a web3 project, the money-making effect is the strongest promotion that any other web2 project can compare, and even if we compare with other web3 metaverses, there are quite a few projects who has better price performance than MANA. It is good that the foundation and DAO are now raising awareness of UX and lowering the threshold for players. But meanwhile, we have to have a clear head that there is still a long way to go until we can beat other projects with experience. So why not let’s put some focus on how to raise MANA/LAND value considering this is actually our unique advantage? If MANA has good performance, more players and creators will flood into Decentraland just like before, money will follow in as well. Please don’t take it as an evil thing, Decentraland will never be successful like now without capital and the increasing value of MANA, even the DAO’s fund is benefiting from MANA’s value.
All the best to Decnetraland, I hope this little article can open up some discussion related to this matter, and we will keep working to make it a better DCL.
The most widely accepted reason for the the depressed valuation is still the bear market. A good barometer to tell whether or not we are falling behind would be to compare with other metaverse tokens and to that, i’d say we are pretty even across the board.
I agree with your point, however, I do think there are some things we can do to improve the performance of MANA, and LAND. For example, we can aim at a higher Market Cap than SandBox. They really did a lot to maintain the value of SAND. And your proposal of purchasing the floor of land is one of the ways to maintain Land’s value
Fastest way to move above is to stop giving grants altogether. The only major price pressure MANA is getting is from the MANA released via the vesting contracts of both the foundation and DAO.
But that will lead to no dev work as well. There’s no way we can alleviate that pressure since our “funding” comes solely from MANA.
How do you propose “we can aim at a higher Market Cap than SandBox?”
Good evening, I appreciate your ideas. Although, I think you are putting the cart before the horse. You have to have a good product before you would want to create awareness. Otherwise anyone you bring will get a wrong impression and it will not match the brand we are aiming to portray. Maybe we should continue building the platform so the use cases for businesses are good and that way we attract businesses and make it so they can have a platform to do business on. They will then effectively market to their customers and bring the end users. Our target should not be end users, it should be businesses and those who can create awesome DCL scenes for people to enjoy on the platform. But once again this is all my 2 cents. Not even worth the 2 cents compared to all the grants going out. We can only hope that sentiment will change with the grants and people will start thinking more about the platform as a whole. Until then, this is basically doomed to fail. My pessimism may offend someone out there, but please just remember my opinion is my own and you don’t have to agree.
I agree that the grant scheme pushes the selling pressure, however like you said it stimulates dev working so it trades off, also considering we have more and more strict standards for grants (comparing with the start of the grant scheme), I think things are moving in the good direction.
However, there should be plenty of things to do that might potentially benefit the value of MANA or LAND. Just like your DAO Land-purchase proposal, which I really admire. It is just that people seem rare to think in this direction, thus I post this one to stir up the discussion
Do you mean the potential solutions? The purpose of this post is to raise awareness, and I hope that someone who has a professional understanding of tokenomics or finance or else can list a few directions, but if no one wants to do it, I can list a few even though I am not professional in my next post
I like your ideas of keeping building the platform, which is something we all are doing, this is the foundation of Decentraland, no doubt. However, I do think Decentraland is more than a metaverse product, it is a web3 product with strong financial attributes. And we are not actively using finance as a weapon to make DCL stronger.
Just as an example, if DCL have staking features, I believe more people will hold their MANA with more certainty and reduce the short-term selling pressure, and buy more time for the platform to be developed.
Plus, what you are saying about the business focus platform is actually one of the indirect directions to benefit the value of MANA.
I guess I was confused about what kind of solutions you are looking for.
The only way to make a token go up in value is to have more people buying it then selling it. Often in crypto when people talk about the price of things they are talking about market manipulation.
The only solution to the problem of low-value land and mana is to build a product/ecosystem people want to spend money to be a part of.
Yes, that’s part we could have more discussion. This post is to introduce a new angel for the future development of DCL. Previously, our angel was always oriented with the platform, product, traffic… but there is quite a few discussion oriented with the MANA/LAND price management.
There are some potential ways to encourage people to hold mana instead of selling, the easiest one might be staking. Or more promotion and partnerships which is sth that the strategic planning group proposed already.
I agree with you as well as the others regarding this point, and I think this is the basis of this project if we think in the long term. However, if we can have some features like staking that can help to stabilize the value of MANA/LAND, that will be beneficial to DCL as well.
I always think DCL is more than a Metaverse, and going in the world should not be the only way to join DCL, we should let those web3 people participate easier in our system and let DCL be benefit from their capital, and then maybe gradually transfer them to players. IMO, it is a more efficient way than attracting traffic from web2 , DCL’s experience and even the concept of the metaverse and crypto is not ready for the majority.
Where do you propose the MANA for staking comes from? Considering that all the available MANA is either already in circulation, or in the 2 vesting contracts with foundation and DAO.
If we were to redirect fundings from the contracts to staking, it’ll remove the ability for both organisations to fund their daily operations, as well as grants and committee work.
In my limited understanding of tokenomics, it seems that staking needs to be introduced right at the start when the token structure is formulated.
At the core, a well built product that is seamless to use, and a strong marketing team is the basis for stronger demand of the token.
I believe another way to get people to hold MANA is by giving more utility to the tokens itself.
So far the uses we have for MANA are for transactions and voting power. Perhaps something more can be introduced.
Staking is just an obvious example, again, this post is to stimulate discussion, which i appreciate what we are having now.
Plus, staking in my context describes the behaviours in which you deposit some money and then get some interested. For example, you can do it on Binance, they offer you 1.19% APR by depositing MANA.
So as long as there are extra fund, then technically it is possible to do it. Maybe via a grant or whatever source. I have even imagined a solution that we can pay some interest to whom delegate their VP to a certain address (VP staking?), this way we can encourage holding LAND as well. And then we delegate the accumulated VPs back to active players to incentives them to play. But there might be some technical constraints at the moment
Also, some other utility might be a good option as well! There are many options if we can just think in this direction a little bit
I believe I already answered this topic on Twitter hahaha