The future of value creation and exchange will know no national boundaries and jurisdictions. They will all be ecosystem specific. Therefore, all use cases need to be ecosystem-specific.
The future for DeFi, GameFi and SocialFi may be embedded. But, this embedding can only be implemented in a well-oiled ecosystem. The Metaverse that brings these user functions together will not only have experiential elements but also utilitarian and gamification elements.
For instance, a metaverse in which DeFi can be applicable will need to have opportunities for microtransactions. A metaverse in which SocialFi can be embedded will need to have an ecosystem that has creators and consumers contributing, being compensated and acknowledged for these contributions.
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 (NFT)-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.
For instance, Ecommerce within the Metaverse is already being tried in several ecosystems. Imagine a user with a good bag of NFTs, going into an art gallery. The art is expensive, and the user is short of liquidity. If NFT-lending has been integrated, the user could use their Ape or Punk to borrow some USDC to buy the art.
In the scenario described above, the user interface is extremely important in making the transaction frictionless. In the above example, instead of an Ape, if the ecosystem has a native NFT, that could be used more seamlessly. These NFTs will be more valuable as the user spends more time in the ecosystem — particularly if there are mechanisms by which they can be leveled up.
As users invest more time and effort in upgrading the value of their ecosystem assets…