Decentraland, an Ethereum blockchain powered virtual reality platform that allows users to create, experience and monetize content and applications, has announced a crowdsale.
Taking place Aug. 8-16 for its ERC-20 token, MANA, users will be able to buy and sell virtual real estate, called LAND, and participate in Decentraland’s virtual reality economy.
The token sale has a $20 million cap and will be followed by a continuous issuance stage.
Ariel Meilich, Decentaland’s project lead, said:
As the virtual reality market continues its rapid growth, we are excited to launch Decentraland, a new virtual economy, where content creators are incentivized and fairly rewarded for their contributions.
He added that Decentraland enables low cost, direct payments among content creators and users with its native token, MANA.
Decentraland has prototypes available for public testing. It offers unlimited possibilities for virtual content creators, including games, art, education and health care applications.
Developers can create and monetize applications on the platform. They can use MANA to buy LAND and other goods and services on the platform.
LAND’s value is based on its proximity to high-traffic hubs, as well as its ability to host in-demand applications.
A property owner can host other users on their LAND and determine how they interact with the virtual world around them. While gaming, art and social applications are anticipated within Decentraland, the protocol enables users to come up with other novel use cases.
Decentraland has teamed with district0x, a collective of decentralized communities, to provide users the ability to trade LAND in the secondary market. While unclaimed LAND can be bought at the same exchange rate (1,000 MANA = 1 LAND), differences in traffic and positions could allow LAND parcels to trade at different prices on a secondary market.
Ownership of LAND is recorded on the Ethereum blockchain, assuring immutability, Meilich said. Interactions are recorded on a network of nodes streams, providing users full control of their LAND and their content.
Decentraland has established financial incentives to support the utility value of the network. Contests for creating applications, art, games and experiences will encourage content creators to compete for MANA. New users will also be provided allowances in MANA, allowing them to participate in the economy.
For example, communities hosted on offline and online forums like chat groups and centralized multiplayer games can transition to Decentraland and integrate economic capabilities into their communities.
Supporters can participate in the MANA crowdsale with major cryptocurrencies via the ShapeShift exchange.
Funds raised in the token sale will be distributed as follows: 50% for development, 20% for research, 15% for community development and marketing, 10% for business development and operations, and 5% for legal costs.
A continuous issuance stage will follow the crowdsale, allowing a decreasing percentage of the initial supply of MANA to be purchased from the smart contract each year, in limited supply over time. Decentraland will protect the token from inflation by requiring users to burn MANA to claim LAND.
The board of advisors includes Luis Cuende, Aragon project lead, Jake Brukhman, CoinFund managing partner, and Diego Doval, creator of n3xt.
The gaming market has demonstrated a strong demand for a decentralized community virtual world. Decentraland is confident that with our illustrious team of gaming, smart contract security and blockchain engineering experts, we will produce the first fully decentralized virtual economy that revolutionizes the gaming industry.
Featured image from Shutterstock.