Super Easy Way to Protect Your Metaverse Real Estate

Many investors are concerned about protecting their metaversioned real estate investments. Here's how to make sure your property is covered.

While you're mowing the lawn this spring (partly because it's your social duty to your neighbors, but partly because you don't), your Homeowners Association (HOA) will send you the wrong letter and fine you), then take a moment to acknowledge the matter. that the HOA does to help you protect the value of your property. For example, it gives you the opportunity to talk about how you can manage your neighborhood and allows you to express your concerns if something seems like an overdose or crime becomes a major problem at home.

Many fear the same kinds of problems in their metaversive irreplaceable goods. Who decides the direction your metaverse platform is headed? What happens if bad elements move in and start causing trouble? In short: How do you protect your interest in the metaverse, and who is really in charge of these things? 

For the main platforms offering metaverse real estate backed by non-fungible tokens (NFTs) that offer proof of ownership, the answer is easy. Your metaverse world has something kind of like an HOA that grants you voting rights and a huge voice in the future of your platform. This is called a decentralized autonomous organization (DAO) and is the best way for an investor to ensure that their metaversioned properties are protected in the long term.

What is DAO?

DAO is an organization that allows you to participate in various decentralized projects - such as metaverse platforms or popular NFT offerings - and has full control over the future of this project. As a DAO member, you can vote based on the fact that you have recognized ownership of the project. This may mean that you have NFT as a digital country or that you have a specific cryptocurrency. 

In the case of the metaverse, platforms that are governed by DAOs, like Decentraland (MANA -0.40%), have regular town hall meetings where owners of both land and world currencies can meet to discuss issues they are concerned about, propose new projects, or vote on new regulations or amendments to current bylaws. In a lot of ways, it's very much like your HOA (minus the lawn mowing). 

How DAOs protect metaverse real estate investors?

Buying land in the metaverse already can be a very risky purchase. It's land you can't touch, stand upon, or visit in the real world, not to mention it's not how many people understand real estate investments, so it is naturally scary. Part of that is because of the newness of the investment type; it's simply not something that's been done before. Another reason is that investors often don't pay much attention to how these worlds are managed, and the everyday nuts and bolts of something are the same and not like the real world.

DAOs are not metaverse on every platform, but those with DAO offer a much greater ownership experience. Many can be metaverse platforms for real gaming platforms with items for sale. You can buy things, but you don't always have the right to sell them, or even if you do, you can't have control over whether the platform owner decides to change the charts or related rules. with them.

However, with established DAO, you and other owners decide on these things (and more). You have a strong claim to the world and you elect board members who make the most important decisions that continue to change the world.

Choose metaverse worlds with DAO for long term success
Although Decentraland is the first to offer a DAO structure to landowners, it is not the only one to offer it. Sandbox (SAND -1.29%) is also in the process of starting DAO, its details are not available at the moment. However, it can follow the same decentralized structure as the example that is considered a successful model.

Other blockchain-based worlds can go this route, and in fact they should. Because they are already built on the blockchain protocol, they have the ability to implement tools such as DAO and other decentralized management mechanisms. This will give landowners in developing worlds more control and greater security over their assets.

For the best long term worries about your investment money, choose metaverse real estate worlds that will give you (and other owners) control over them using DAO as a similar management tool. Otherwise, the ground you have in virtual worlds is still to the benefit of platform developers, who can literally change everything overnight and without warning.