Video game Decentraland requires MANA Tokens to be burned in exchange for NFTs LAND

Earlier today, Cointelegraph published, that NFT-powered and video game Decentraland announced a token bridge enabling its users to transfer MANA tokens to Polygon and back. The article mentioned, “This is just the first step in what will be a significantly larger migration, as the project intends to enable all Decentraland dApps, including their Builder and Marketplace contracts, to conduct transactions on Polygon”. This integration will make transactions completely free since Polygon is charging a transaction fee.

Summary

  • NFT-powered and video game Decentraland announced a token bridge enabling its users to transfer MANA tokens to Polygon and back.
  • MANA was launch in an initial coin offering (ICO) that was conducted in 2017 at an initial value of $24 million. However, it launched its closed beta in 2019 and was available to the public in February 2020.
  • Decentraland (MANA) is a virtual reality platform powered by the Ethereum blockchain. In this virtual world, users can purchase virtual lands that they can later build on and hence monetize content and applications.
  • At the time of publication, MANA is the 80th ranked token by market capitalization and has risen 3750% to $1.02.

 

About MANA

Decentraland (MANA) is a virtual reality platform powered by the Ethereum blockchain. In this virtual world, users can purchase virtual lands that they can later build on and hence monetize content and applications.

There is a wide range of user experiences that have achieved interactive gaming, sprawling 3D scenes and a variety of other experiences.

MANA was launch in an initial coin offering (ICO) that was conducted in 2017 at an initial value of $24 million. However, it launched its closed beta in 2019 and was available to the public in February 2020.

It should be mentioned that Decentraland uses two tokens MANA and LAND. MANA is an ERC-20 token that must be burned to acquire non-fungible ERC-721 LAND Tokens. MANA Tokens are used also to pay for avatars, wearables, names and other features that the Decentraland marketplace is offering.

What is more, Decentraland is one of the fastest-growing numbers of projects to use a decentralized autonomous organization structure for governance decisions. This is why MANA holders are in control of how Decentraland behaves and acts since they can have voting rights and can propose ideas.

Many uses generate income by creating or selling their items on the marketplace of the game in exchange for MANA Token. Something similar to the ALICE Token that we shared with you last week.

About Decentraland

As in real life, real estate is all about location, location, location. The parcels closer to Genesis Plaza (the location at which users enter the game) and various districts such as Vegas City, Crypto Valley, or Dragon City, are typically more valuable than others. Similarly, parcels near crossroads are worth more than those that are not.

In Decentraland, purchasing adjacent parcels can create an “estate.” Owning an estate permits owners to build larger developments. In Decentraland, people all over the world (using their avatars, of course) can attend virtual gaming conventions; gather in a virtual space to watch a real-world sporting event, or pitch ideas to potential investors in a virtual Silicon Valley called Crypto Valley. That’s why it’s important to own many adjacent parcels. This land can be rented out, allowing owners to generate cash flow and potential income from tenants.

The most popular developments within Decentraland are:

  • Art galleries where owners showcase and sell their digital NFT art, including Cryptokitties and other types of NFT collectibles
  • Casinos, where players can win MANA
  • Game sites, such as whac-a-mole
  • Brand-sponsored content, such as the recently announced Atari arcade which will feature games that can be played within Decentraland
  • Music venues where DJs and musicians play music and hold concerts

Technicals

MANA price today is $1.02 with a 24-hour trading volume of $275,358,755. Overall, the price is down almost 4% in the last 24 hours and its live market cap is $1.6 billion. At the time of publication, MANA is the 80th ranked token by market capitalization and has risen 3750% to $1.02.

decentraland chart
Source: https://coinmarketcap.com/currencies/decentraland/

As of January 2021, just north of 1.49 billion MANA tokens were in circulation. This is equivalent to around 68% of the current total supply of 2.19 billion MANA.

The original total supply was set at 2.8 billion MANA, but has been reduced as more than 600 million MANA have been burned as a result of LAND auctions.

There is also a range of further burn mechanisms in place to further reduce the circulating supply of MANA, including a 2.5% MANA burn on Decentraland marketplace transactions.

MANA was originally designed to inflate at 8 percent in the first year, decreasing gradually over time to reduce the rate of inflation. But inflation is currently disabled. In total, 40% of the MANA supply was sold during the 2017 initial coin offering (ICO). In addition, 20% was reserved to incentivize the community, 20% went to the development team and other early contributors, and the remaining 20% was held by Decentraland. Project lead tokens are no longer vested.

Bottom Line

In the last year, the NFT market tripled in size, and this momentum has continued into 2021. Headlines have boasted record-breaking trades, like Beeple’s NFT that was sold for more than $69 million a few weeks ago. Artists from all industries, art, music, collectibles, wearables, and more are being repackaged as NFTs, and as people continue to invest in NFTs, they will need a place to store, display, and wear their digital assets—and that will be in metaverses like Decentraland.  

Disclaimer

We are very bullish on this stock acc to the fundamentals mentioned above and technical, but we urge you to do your own due diligence and decide if this stock can fit your investment portfolio. We are not certified analysts, and this is not a recommendation whatsoever but our own personal opinion and should be considered as so, stock displayed high volatility and can be considered a risky investment and may cause loss of capital so please analyze the stock carefully before making a decision.

Natalia C. - Junior Analyst at FDGT Academy

Natalia C. - Junior Analyst at FDGT Academy

I am a stock analyst/investor with prior experience and knowledge to BSc Accounting and Finance. After completing my degree and exposure to the accounting firms I decided that the direction I should choose is towards the Investment world. I completed my masters in Investment Management where it gave me solid fundamentals to build my career on. I have examined a lot of different aspects of investment, from REITS, derivatives, currencies, bonds, equity and hedge funds. I never stopped learning about the market which is why I can analyze and write articles for FDGT community always personally opinionated. My passion are green energy and electric vehicles stocks as a whole. I also had my share of analyzing the work form home stocks that are coming to take over in the upcoming years.