Everyone is asking if Decentraland game a good investment, we have the answer for you.

Decentraland game is a virtual world built on Ethereum. The assets on it are completely owned by users. The Decentraland development team cannot control the avatars, costumes, plots, shops, conference centers, art galleries, etc. of these users. Real private ownership is realized here. Even if the Decentraland team ceases operations, these assets are owned by users, and it is even possible to use these assets in a new virtual world.

The Decentraland game ecosystem has two core parts: land parcels, an irreplaceable asset (ERC721) and MANA (ERC20), a fungible currency used to purchase land parcels and other in-game transactions. The Decentraland project originally started in 2015 as a proof of concept using the Ethereum network. The first iteration of the proof-of-concept is called the "Decentraland Stone Age" by the team; it consists of a 2D pixel grid, with the owner and color of each plot encoded in metadata. Then, it developed into a simulation of a 3D virtual world at the end of 2016, as the team explored the option of hosting data on the chain and making each plot accessible to testers. Since this was before Ethereum, the team chose to use a modified version of the Bitcoin blockchain to host a "distributed hash table" or a similar directory. Users can look up the package they want in the hash table, and it will guide them to find the file that contains the content of the package. The user can then load the file and interact and roam around the package, all of which is done in a fairly decentralized way. This proof of concept is in many ways the foundation of Decentraland today.

One of the reasons that make Decentraland game the number one mover is that they are very fast at establishing and implementing technology in the blockchain field. Not only did Decentraland game build and implement the DAO to manage the protocol, the protocol itself is also completely decentralized at the time of writing. So what exactly is Decentraland DAO?

DAO is represented by the community and also owns the main smart contracts and assets that manage and control Decentraland. In addition, DAO also controls a large number of MANA for community activities and other operational tasks to keep the Metaverse running. The community can propose and vote on policy updates and various other projects, such as partnerships and NFT projects, through the DAO portal supported by the Aragon Agreement to allow them to be carried out in the Metaverse. DAO is supported by the Security Advisory Board (SAB) to solve the technical defects of smart contracts and the contracts required for upgrades. The committee consists of 5 members appointed by the Decentraland team and the community.

Decentraland game has held two land auctions in total, and the MANA spent in the auction will be burned. After the second round of auctions, the land in Genesis City has been sold out.

The first auction took place at the peak of the bull market. The highest unit price of the land auctioned was about 600,000 MANA, equivalent to nearly 100,000 U.S. dollars. The MANA participating in the auction was equivalent to 16% of the circulating volume at that time. Exchanges such as OKEx, Huobi, BigONE, Exchange Union and HitBTC also participated in the auction.

The second auction took place in a bear market, and the price of MANA fell by 82.55% from its peak (based on data on December 23, 2018). Five days after the start of the auction, the price of the plot dropped to a certain level before players entered the market one after another. If priced in MANA, the unit price of the second auction is 2.5 times that of the first auction, but if priced in US dollars, the unit price of the second auction is 0.87 times that of the first auction. Considering that the land sold in the second auction is the surplus of the first auction, the importance of the land is much lower than that of the first auction, so the second auction can still be understood as a higher degree of popularity. MANA participating in the auction accounted for 8.6% of the active circulation.

MANA use cases:

The initial use was to purchase land in primary land sales. Burn 1000 MANA -> 1LAND

Buy LAND on the secondary market

Purchase goods in the game (wearables, name, NFT, etc.).

Payment of service fees (such as land development or entertainment).

MANA is also reserved as a "creator fund" to incentivize content creators to continue building and contributing to the community.

Holding MANA tokens can participate in the management of Decentraland's decentralized autonomous organization (DAO).

People seem to be betting that Decentraland game will succeed. As Karamy Russo pointed out in the "The Defiant" newsletter, in an early period of time, through 121 transactions, NonFungible sold $160,000 of LAND. Obviously, virtual mortgages are also available in Decentraland, which shows that people see some kind of opportunity. Of course, Decentraland also raised more than 86,000 ETH in the 2017 crowdfunding. However, from a purely empirical perspective, I do believe that Decentraland will develop in the future.