The Metaverse is expected to be the next avatar of the internet. As the internet is now, the Metaverse will have various virtual economic models powered by Web3. What are these models, and how do they work?
. However, that is set to change with the Metaverse becoming a part of the household.
But the Metaverse is not just a collection of applications. It is more a bundle of conscious and unconscious user experiences within a scalable economic model. The conscious experiences can be categorized as verticals and the unconscious experiences as horizontals.Understanding the differences between conscious and unconscious experiences is essential for seeing how these applications interact in the Metaverse.
Coming back to the Metaverse, all three paradigms — DeFi, GameFi and SocialFi — would be embedded experiences. This is not to say we won’t have metaverses like the Otherside where people come to play. But many of these paradigms will be unconscious experiences, making the paradigms more horizontal than verticals .The future of value creation and exchange will know no national boundaries and jurisdictions. They will all be ecosystem specific.
Let us now look at what we could see as embedded DeFi. Many of these have already been implemented in several metaverses.As this space evolves, we see microtransactions, nonfungible token -based lending, rental mechanisms, NFT marketplaces, micro token economies, token exchanges and many more bells and whistles that will support the Metaverse economy. Each of these features have their purpose in establishing a scalable economic model within the Metaverse.
As users invest more time and effort in upgrading the value of their ecosystem assets like NFTs, land or in-game assets, these assets will play an important role in DeFi elements, which the user can leverage.. Yet, in many instances, gamifying an experience is as important as GameFi. Often, these features do not need to be intense Fortnite style gaming experiences. They can use casual games, leaderboards, loot boxes, battle passes and raffles to provide gamified experiences.
This form of “social swag” is also critical in DeFi transactions. Creators and gamers with social scores or experience points can get better deals when they tap into the DeFi components of the Metaverse. More social swag allows economic participants to accrue value within the ecosystem faster.
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