Decentraland’s Second Land Auction Has Started

Decentraland 14 Feb 2018

Decentraland has announced that the unsold plots of land left over from their first auction are now up for grabs to the highest bidder, between now and Christmas. The virtual parcels of land are 10 metres by 10 metres square, and called, simply, LAND. In the past, prices for LAND have gone as high as US$120,000 each in frenzied bidding wars, the prices being driven up by eager cryptocurrency speculators hoping to make a profit.

In an announcement posted on Dec. 10th, the company states:

The LAND Auction will run until Sunday, December 25th, 2018.

Ever since the first LAND Auction last December, people have been eagerly anticipating the opportunity to claim some of the unsold, unowned LAND remaining in Genesis City. Even with the 34,356 parcels sold last year, there are still over 9,000 up for grabs!

We are extremely excited to kick off this next auction, and want to thank the entire Decentraland community for your continued support and enthusiasm. This is an exciting next step for the platform, and we look forwarding to building something incredible, together.

For additional details, and answers to some of the common questions we’ve received, keep reading!

Where do I access the auction?

The auction will be held right in the Decentraland Marketplace, at market.decentraland.org/auction. It’s also easy to access the auction through our partner’s mobile dApp browsers, like StatusimToken, and Trust!

How do I participate?

Simply create a wallet with MetaMask, Mist, or use a Trezor hard wallet, and ensure that you have sufficient funds in either MANA or one of our partner project’s ERC20 tokens.

You can also use a variety of mobile wallets, like Coinbase WalletTrust Wallet, and imToken!

We have two video tutorials showing how to log in, manage your tokens, select the parcels you want to buy, and complete your transaction! Check them out here:

Can I bid for multiple parcels at once?

Yes! In fact, the second auction is a wonderful opportunity to secure an estate, or expand your current holdings to include some of the adjacent unowned space.

Contiguous estates make it possible to host larger, more complicated scenes and experiences. You will be able to purchase up to 20 parcels per transaction.

When will I receive the parcels I buy in the auction?

Once the transaction for your purchase has been processed, you will receive your LAND immediately. The transaction must still be mined by the Ethereum network which may take several minutes, as with any normal LAND transfer on the Decentraland Marketplace.

Virtual land will be sold in the fashion of a Dutch auction:

How is the price for each parcel determined?

We are using a Dutch auction, in which all available parcels are started at the same price of 200,000 MANA. This price is continuously and progressively lowered, until a final price of 1,000 MANA is reached on the last day of the auction. You can read more about how the price is set, and the rate at which it’s lowered in this blogpost.

Only two days into the auction, there’s still lots of LAND available to bid on, as prices are still pretty high (currently, 48,479 MANA each, which works out to US$2,613). Bids can be placed using Decentraland’s own cryptocurrency, MANA, or any of the following ERC20-compliant tokens:

  • Maker (MKR)
  • Dai (DAI)
  • Binance Coin (BNB)
  • Kyber Network (KNC)
  • Zilliqa (ZIL)
  • Riplo Credit Network (RCN)
  • Aelf (ELF)
  • Status (SNT)

(Don’t ask me to explain any of this to you; it’s all just gobblegook acronyms to me!)

As I have warned before, do all your homework before investing a single cent in any cryptocurrency and any blockchain-based virtual world. Caveat Emptor!

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Thoughts on the Land Market in Second Life and the Newer Virtual Worlds

jesse-roberts-146556-unsplash.jpg
Photo by Jesse Roberts on Unsplash

Through the Second Life Friends group on Facebook, I found out about my new favourite thing/activity in Second Life. It’s a backpack by ScriptWorks that you wear, and when you click it, it teleports you to a random spot anywhere within Second Life! (You can set it to avoid Adult-rated areas if you wish.)

You can buy a set of 5 random teleporter backpacks on the SL Marketplace, which means that you can give them to your friends and go exploring together! A group of backpack wearers can be simultaneously teleported to any random location on the grid, estates as well as mainland sims. It is great fun and a great way to see Second Life!

In spending my time exploring the SL grid with this backpack, I have learned a few things while hopping around from sim to sim:

  1. There is a lot of empty/abandoned land on the SL mainland. According to the Second Life Grid Survey, between 20.7% and 21.4% of Mainland by area is abandoned parcels, but to my eye, it looks like much more than that. No wonder Linden Lab is trying to encourage more land use by decreasing the cost of tier and doubling the amount of free land given to Premium members.
  2. There are a lot of people who are land barons, who buy land, subdivide it, and rent it out to other people. I really had had no idea that it was such a big business in SL! I have visited some attractively designed communities like Cedar Creek, Lionheart, and Orchard Heights, where I was tempted to rent a beautiful home for myself.

Which got me thinking about the concepts of land and land rental in the newer virtual worlds. It’s going to be a lot harder for people to make money as land barons in places like Sansar, where you can get up to three 4km-by-4km spaces for free (and even more land if you upgrade to one of the paid subscription levels).

However, there may still be a market for people who create well-designed spaces that other people want to rent. Drax has said that he wants to rent out the currently empty houses that line the street in his 114 Harvest experience. I’d certainly be interested in renting one of those houses!

The thing is, once you own land, you want to build something on it. This, in turn, drives the economy, as people purchase houses, trees, swimming pools, etc. I used to own land in Second Life, both on the mainland and then in the planned community of Bay City, but I sold it years ago. For many years I was homeless, like many SL avatars (although I did have access to a secret spot with build rights, where I could unpack boxes and change outfits).

Then very recently, I decided to use one of my Premium accounts to get myself a Linden Home in Second Life, and right after that I went out and bought some new furniture from many of the designers whom I have met and gotten to know from my time in Sansar, like Maxwell Graf. Loz Hyde, Froukje Hoorenbeek (a.k.a. Dutchie), and Ria Bazar!

What about newer virtual worlds other than Sansar? I seem to remember visiting a domain in High Fidelity where avatars could set up homes for themselves, but I’m not sure what the status of that project is (and I’m not even sure if I could find it again!). Much like Sansar, Sinespace actually gives you a free home space which you can decorate as you wish.

Frankly, most of the people currently exploring and inhabiting the newer social VR spaces/virtual worlds are creators rather than consumers, who are going to build from scratch rather than select ready-made items from a marketplace to decorate their living space. This means that most people are going to use their own (free) land rather than rent it from a landlord. It might stay that way for quite some time, which could be bad news for wannabe land barons in the newer virtual worlds. And it could be even worse news for people who bought expensive virtual land in places like Decentraland, hoping to be able to make some money by renting it out.

Linden Lab Announces a Mainland Price Decrease in Second Life

In a surprise move today, Linden Lab announced that they’ve reduced Mainland land costs by 10%. Here’s a before-and-after comparison chart of the changes (here’s the source if you are having trouble reading the fine print):

Pricing and Allotment Comparison 14 Mar 2018

Another big announcement is that they are doubling the amount of free land that Premium members get, from 512 to 1,024 square metres. So that’s actually a benefit that may entice some people to upgrade to a Premium account. Maybe. (I’ve always thought that Linden Lab doesn’t give nearly enough perks to Premium members. 60 groups instead of 42? Big whoop-dee-do. As an SL fashionista, I need at least 100!)

It’s no secret that Linden Lab is sitting on top of lots and lots of unused/abandoned Mainland, so maybe this is a way for them to sweeten the deal somewhat, in order to encourage more land ownership. I’m rather skeptical that this move will work, but we’ll see. People who were fed up with the high land prices in Second Life either downsized long ago, or packed up and moved to one of the Opensim-based virtual worlds.