Decrypt: Decoding the Metaverse Index
NEW DELHI: The metaverse - the word concurs up a new expression of life. It seems to have jumped straight from the pages of science-fiction to real life! And after Facebook announced its metaverse project last year, it is just a matter of time before the shift to virtual reality becomes standard practice.
The “metaverse” is a shared digital space that seamlessly integrates aspects of the real world — specifically things like ownership, identity, and financial value.
Come the Metaverse boom and come the The Metaverse Index! A unique solution for users to participate in the metaverse through access to multiple protocols rather than a single token.
The MVI aims to capture the trends in transition of entertainment, business, and social activities towards virtual economies, on the foundations of blockchain technology and NFTs.
So what exactly is the Metaverse Index? Simply put, it is an index product designed for tracing the trends pertaining to transition of entertainment, business, social activities, and sports to virtual environments.
It was launched in 2021 by Index Coop, a decentralised, community-driven organisation responsible for creation and maintenance of other crypto indices such as Bankless BED Index and DeFi Pulse Index.
As the metaverse opens up the doors to an extensive virtual economy. It is also important to note how digital ownership and free markets in the metaverse use blockchain technology, thereby setting a difference from social contracts governing web2 solutions.
MVI, or the Metaverse NFT Index, can help investors discover an opportunity for investing in the metaverse as it helps in capitalising on the choice of metaverse protocols rather than investing your assets on one platform or token.
You could think of MVI as a gateway for beginners into the world of the metaverse.
There is a criteria for this and some key factors that are critical for the index weightage are tokens ideally should be Ethereum-based with a healthy market capitalisation (ideally over $50 million), having a fair operation history (at least three months).
Tokens must register proof of consistent and reasonable levels of DEX liquidity on Ethereum. The protocol suite should also pass through an independent security audit.
Some of the tokens available on the Index are Illuvium ILV - popular metaverse gaming platforms based on Ethereum blockchain AXS, the governance token on Axie Infinity, Enjin ENJ is another major entrant in the current Metaverse Index - the utility token for powering up the NFT economy of Enjin.
The MANA token of Decentraland is also one of the major entries in MVI. The SAND token of Sandbox, is also a top player in MVI index for its role in fuelling a gaming economy.
There are others as well.
The introduction to metaverse index highlights the metaverse experience for users. It brings the best of all metaverse platforms and tokens into a single pool.
Any MVI token holder can have the privilege of drawing the best of multiple metaverse platforms and tokens according to their requirements.
Now you don’t have to put all your money on a single metaverse token and trust in its long-term potential for growth as the MVI follows a straightforward approach to including the best tokens in the index.
A Metaverse mutual fund you could say for now!