As metaverse land assets become more expensive, ownership becomes harder for ordinary users. Because of this, Casper Association board member Ralph Kubley argues that fractional ownership, similar to property loans in the real world, could gain traction within the virtual space through non-fungible tokens (NFTs).
Kubily told Cointelegraph that understanding fractional ownership within the metaverse is similar to a legacy asset system. As prices rise, many people cannot afford to buy and own a property. This leads people to rent or lease property, giving a form of partial ownership. He explained that:
“Instead of the typical tenant-buyer relationship and processes inherent in legacy systems, smart contracts and virtual assets such as NFTs power this fractional ownership system.”
Casper execs say this also applies to “leasing advertising space or issuing loans to fund new projects”. According to Kubily, smart contracts enable a “fractionation agreement” that the metaverse divides a plot of land into “sub-units” and leases out individually. Kubily noted that:
“In theory, it can be applied to any digital asset, provided smart contracts and related technologies are designed for this purpose.”
Kubily also highlighted that there are many big developments within the Metaverse, but that there will be “countless small operations”. These can come in the form of art galleries and social media hubs. According to Kubily, these operators will need access to virtual real estate to start construction.
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In addition to these, the Casper executive predicts that leasing out Metaverse land will become common. Kubily noted that this would “open the door” to widespread adoption, allowing anyone to join in. The executive believes this could lead to an “explosion of unique content” similar to the debut of Web 1 and Web 2.
Meanwhile, investor interest in the GameFi and Metaverse projects is increasing as the crypto winter hits the markets, DappRadar reports. In 2022, there is an investment of $4.9 billion in Metaverse-related projects to support further development.
