Wearables: Licensing and Economic Modeling

I agree but the question is will there be quality control or will anybody get to put anything on the market? If you want to have a standard of quality control you need people to oversee who gets a license. If you want to allow trash on the market then decentralized it is.

Decentralized does not have to = trash. I see what you mean.There must be a away to create a system that discourages wasting valuable licences while not having single individuals deciding who gets to create stuff. What if a licence to create a legendary collection in 2020 would cost 100k. The creator will get 20% of the items minted. Is there incentive enough to do really well? (Maybe the math could be different. This is an example)

If Im buying a License for a collection then I would think I get 100% of items minted since DCL is making money off of the license i just bought.

A free market allows for trash, thats why its a free market. Doesn’t mean people will buy it, but it will be in the market. DCL=Trash has nothing to do with wearables. DCL is made up of professionals as to anybody can get a license means even people who dont know how to create wearables can make them. Huge difference.

Just look at Crypto Voxels market. It’s a free market, anybody can submit for their wearable to be minted. Some items are amazing made by very talented people and some are not. Quality can be subjective…unless robots or software can have opinions on what is good or not, then you need people in the loop. Maybe not to judge individual collections but to judge the designers.

I’d rather have a general license to create rather than have to buy a license each time for each wearable. And I wouldn’t want it to be too expensive, otherwise it may hinder growth of the wearables market.

(I apologize to have used some provocative expressions. It was not my intention. But we are getting some interesting points on the table here. Thank you)

I understand but I cannot agree for now.

You said:
And I wouldn’t want it to be too expensive, otherwise, it may hinder growth of the wearables market.

It should be an investment by the creator and the incentive should be becoming ROI positive by seeking quality and market acceptance. Otherwise, the investment will not pay off.

I do not think that you would keep all mints just because you get to create 5 designs. Then the license would have to cost a lot more. Then, think about it, people who would get the license would have a crazy privilege making it even more important to have a fair distribution. But this is another interesting point to think about. Great.

Let’s remember. Making the designs is not extremely difficult. Allowing 1 licence to generate potenially a million Mana just by getting it, would be a bit heavy. The whole system should benefit from a new collection. Not just one dude cashing out into ETH draining DCL.

I get that a license should be an investment but nobody knows what the ROI is or will be since it would be brand new. I think a start low and then adjust the price as the market grows would work better to entice new designers to apply to get a license. If you start too high it will discourage people to even look into designing for DCL.

Making the designs requires some sort of creativity and creativity should be rewarded. DCL either makes money off of the license or it makes money by keeping some mints, not both. Besides, why would DCL want to spend more man power on listing wearables for sale? It would also then become competition for the designer who may want to price the wearables at a certain price but DCL prices them lower. There’s all kinds of situations like this where I think DCL should just avoid. The simplest thing to do is just charge for a license which it makes MANA from and give all mints to the designer.

Hey Guys, I hope all is well and good. I have been following the wearables for a while now. I am in the opinion that there should be two seperate licensing issued for all new wearables.

1- Community Designed Wearables.

2- Corporate/Business Designed Wearables.

I will start by expressing why I believe the Corporate/Business designed wearables are important. First and foremost this category wearables should only be limited to T-Shirts & Hoodies. Examples of these can be seen in the DCG (digital currency group) created wearables. This model not only gives incentive for businesses to build and utilise Decentraland, it could also be a way of promoting their business/brand.

Obviously the mint numbers have to be decided but perhaps 5000-10000 maybe a good estimate. This way rather than creating 100 wearables, everyone within decentraland will have the opportunity to own one. Distribution for example be kept simple as everyone who has owns avatar name automatically receives one. This marketing, sales pitch alone can attract many more businesses and brands to decentraland. In simple terms they can design their own t-shirts and hoodies and place their logo and branding on the front and back. We can discuss more on this topic but this is the baseline. The reason why I said T-shirt & hoodies is it is the one that stands out it a perfect template for advertising. Pants, shoes etc will not work with this model.

And now for the much talked community created wearables. Community created wearables should not be limited to T-shirts & Hoodies only. Complete range shall be made available. I am not going to get into numbers as Clark Kent covered this area outstandingly. Each Community created wearable must pass some tests. No one wants to see ugly or boring wearables designed in a rush just to make a few mana. DAO or community selected judges can decide what goes through and what doesn’t. One important subject to consider can be not to flood the market with wearables.

This is all I got to say for now.


Hi Everyone,

Digitible.com here
Want to thank Swiss for the invite to this thread from twitter.

The person who is typing is company president Logan or futjrnaut in world.

I would like to share this medium article that will show you there are real world brands wanting to make a splash in DCL along with other realms in the metaverse

“Corona Virus Pushes Clothing Brand to go PPE & Virtual Sparking Style in the Metaverse” by Digitible Team https://link.medium.com/zvEZ65PMl6

In this campaign people bought masks designed by visionary arists IRL and are being airdropped NFT Masks that were modelled by metaverse renowned CyberMike ensuring that the complete DCL Wearables spec passed down to us by ToonPunk was used.

As a clothing brand that sells limited designs (numbered of 111, 333, 420 etc) to hundreds of thousands of people every year (and for the last 10 years) The Headspace has dabbled in VR and Gaming in the past.
Now, with this initial campaign of matching masks this will be an entry point into ethereum and nfts for most of the headspace’s customers.

Wouldn’t we as a community want these entrants to choose DCL as their home? We know we do.

We just had a great conversation with Mr ClarkKent on how we can propose to the DCL community our entry as a Licensed Wearables Company and are looking forward to building our proposal with him on the subject as we intend to render and tokenize the entire Headspace Catalog, and then sign other brands, throughout the year.

We super love each and every one of you and are hoping to make the pie bigger, not get a bigger piece of it :heart::heart::heart:

Your Favorite Purple Unicorn

Thanks for sharing that Medium article. This was interesting and eye-opening. Just the pictures are worth the visit.

I have to say that having read all the different opinions on what the wearables economics should look like I am beginning to the think that an open market of some sort will have to exist because I do not think that licensing individual players is a fair mechanism in the long-run unless we are trying to recreate a similar world that we already have in real life with a few players controlling everything.

Especially those among us who speak out against centralization and pro-Bitcoin should understand that or else admit double standards.

There are many voices in the community that are against an open market because they believe that it would dilute their investments in the current wearable collections. This may or may not be true.

Others propose a distinction between player-created NFTs and corporate promotional lines.

You actually want to represent RL brands in DCL which is not a corporate promotion in its essence and is a 3rd kind of use-case.

It seems that we need to start thinking about rarity type denominations and be much more specific about what Swanky is for vs Epic and how we could attribute those to different use cases in a free market while protecting the original lines and their future.

I don’t understand why there is a need to create a centralized control over how makers structure the value or rarity of their creations? For a world that seeks decentralization, why would this be less free market than the old world? Smart creators will tune and learn from market how much rare stuff to make. Others will make a lot of cool stuff, or junk, for low market value. Why is there a need to centrally control this?

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People who have invested money into wearables are the ones who are trying to control it more. I think if there are too few wearables then it gets boring. If you have too many to begin with it gets overwhelming. People like to have options over how to dress their avatars. The avatar is an extension of the player. There is so much potential as to how far we can take wearables. I get starting slow and testing things out. Decentraland wearables shouldnt be about protecting your $800 wearable sweater investment… wearables are not investments first. They’re for the players and I hope we don’t lose sight of that.

Hi all, my first post here so take it fwiw. Been lurking/reading/exploring DCL for a couple months now increasingly so and very excited about the prospects of creating content. Of the metaverses I’m of the impression DCL is the most decentralized, which I find very attractive. Imagine my surprise at the first topic I encounter being about licensing of all things :stuck_out_tongue:

I get the general concern about dilution of rarity but is this the most important question to focus on? I suggest a more pressing question is how can wearables and other creator content best drive user growth and economy to DCL? With growth, all classes mythic legendary and otherwise will grow in value.

If growth is the goal, I suspect giving users the freedom to create and price whatever sort of item a want is a given. Requiring x amount of certain shirts or pants will only remove certain creations that could have otherwise been. For example, if this model had been applied in CV, we’d never have seen the shocking tentacles or floating halos that some prefer to wear. Why not let the crowd surprise as much as possible?

I don’t see too many Mythics overall depleting the value of existing Mythics. Sauvy creators will figure out how best to price their pieces and how common to make each one in relation to the anticipated demand. If they overprice or otherwise mess up, they wont sell and then go back to the drawing board. I can honestly say I’ve never given thought to their being too many 5/5s or 10/10s across a whole metaverse. Instead, I look at how rare that particular item is in the context of who made it. If its from a desirable creator and it’s rare… that’s valuable! It’s value in my eyes won’t be affected by how many 10/10s are created by some other creators on the other side of of DCL. Certainly some will value NFTs/wearables in other ways but that only further proves the point that it’s difficult to tackle with licenses.

My least favorite part of the CV model is that its very centralized with all NFT wearables issued from one single smart contract and there’s zero flexibility in adding in more complex NFTs. I would be most excited to confirm that DCL is more accessible and flexible on the integrations side.

Thanks for reading and glad to meet you all.

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Is this licensing proposal just for items to appear in the Decentraland Market?
Or it is a proposal to limit what NFT wearables that one can make for oneself or others and exchange outside the Decentraland Market?
I have little issue with the Decentraland Market setting rules for content in that Market, but a lot of problem with having to get permission to make custom wearables for myself or for private sale.

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Carl, I think I agree with your world views for the most part.

I would not like to see single individuals approving what I am allowed to create or not. I also do not want to have individuals getting any exclusive licenses of any kind. That is nonsense and a centralized RL world thinking.

I also do not think these are scalable approaches to govern a heavily populated DCL world in the future. Selecting, voting, picking exclusive rights will eventually lead to some kind of “war”.

The whole idea of smart contracts, is to avoid exactly that by removing human single point of failures and bias.


I have experienced virtual economies completely collapsing (referring to Ultima Online) due to oversupply of previously rare items. Once you open the pandora box, you cannot close it.

I therefore think that it does make sense to pick the most conservative approach possible to get started by controlling most variables possible without introducing voting, judges or any other potenially biased human decision makers.

!While writing this, I actually understood now what you were saying. Maybe it would actually make a difference on what marketplace the items are traded. As long as the DCL marketplace is protected, maybe it would not be that bad to have Opensea trade all user created stuff, too. I did not think of that.

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You could be right. Maybe having a sea of user created items would not take away from the value of the original wearables. Maybe it would actually accellerate the value. However, if you are wrong, there is no going back. And that is the concern, I think.

At the same time, if user creations become the norm, we will still need some kind of policy for the original DCL items. When the DCL team decides to stop influencing the DCL metaverse and throws away the keys, what happens to that original wearable system?

All items become ulta scarce and new once will never ever be minted again?