Anthropologist Tom Boellstorff has a new thought-provoking essay on The Conversation, pointing out the importance of learning from metaverse/virtual world history. For instance, what Second Life's real estate management policies can teach new metaverse platforms like The Sandbox:
Second Life originally had “point-to-point teleportation” (P2P). You could arrive anywhere in an instant. But in 2003 Linden Lab, the company that owns Second Life, disabled P2P. Residents trying to reach a destination would appear at the nearest “telehub.”
This had implications for real estate. Valuable for businesses and entertainment, plots of land near telehubs sold for top dollar — until 2005, when Linden Lab suddenly announced the end of telehubs and the return of P2P.
Land near former telehubs no longer had special value; some people lost thousands of dollars. The most powerful landlord can’t change the laws of physics, but Linden Lab could literally recode scarcity out of existence.
Fast-forward almost 20 years. Land next to Snoop Dogg’s virtual mansion is scarce: A plot could cost $450,000 because The Sandbox doesn’t have P2P. But were the company to suddenly add P2P, that $450,000 investment could become nearly worthless.
The thing is, The Sandbox's actual user growth is tiny, so the value of Snoop's Sandbox property is negligible. By implementing P2P, Linden Lab created universal inherent value in Second Life real estate, no matter the specific location in Second Life. Partly for that reason, unsurprisingly, there are far more active users in SL than in The Sandbox.
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