As the land assets of the metaverse become more expensive, ownership becomes more difficult for normal users. Thus, Ralf Kubli, a member of the Casper Association Board of Directors, argues that fractional ownership, similar to real-world real estate loans, can gain currency in the virtual space through non-fungible tokens (NFTs).
Kubli told Cointelegraph that understanding fractional ownership within the metaverse is very similar to the legacy ownership system. When prices skyrocket, many cannot afford to buy and own property. This leads people to rent or lease properties, giving a form of fractional ownership. He explained it this way:
“Instead of the typical tenant-buyer relationship and processes inherent in the legacy system, smart contracts and virtual assets like NFTs are what drive this fractional ownership system.”
The Casper executive adds that this also applies to “renting advertising space or issuing debt to finance new projects”. According to Kubli, smart contracts allow for a “fractionation agreement” that divides a metaverse parcel into “sub-units” and is leased individually. Kubli noted that:
“In theory, this can be applied to any digital asset, as long as the smart contracts and associated technologies are designed for this purpose.”
Kubli also highlighted that, although there are many larger developments within the metaverse, there will also be “countless smaller operationsThese can come in the form of art galleries and social media hubs. According to Kubli, these operators will need access to virtual real estate to start building.
Aside from this, the Casper exec predicts that metaverse land leasing will become commonplace. Kubli mentioned that this will “open the door” to wider adoption, allowing anyone to get involved. The executive believes this may lead to a “unique content explosion” similar to the start of Web1 and Web2.
As the crypto winter shakes the markets, Investor interest in GameFi and metaverse projects continues to grow, according to a report from DappRadar. By 2022, $4.9 billion worth of investments have been made in metaverse-related projects to support new developments.
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