Virtual reality platform Decentraland announced today announced a crowdsale for MANA, its ERC-20 token, will run from Aug. 8-16. There is a $20 million cap followed by a Continuous Issuance stage.
Funds will be earmarked to the following areas: development (50 per cent), research (20 per cent), marketing and community development (15 per cent), operations and business development (10 per cent) and legal costs (five per cent).
Powered by the Ethereum blockchain, Decentraland lets users create, discover, experience and monetize content and applications. MANA lets users participate in the Decentraland virtual economy by purchasing “LAND”, which is virtual real estate.
“We believe Decentraland, which enables low cost, direct payments between content creators and users with its native token MANA, will radically change e-commerce and online content distribution,” project lead Ariel Meilich said. “Already in development with prototypes available for public testing, Decentraland offers limitless possibilities for content creators to contribute to and shape the virtual world, from gaming to art installations to education and healthcare applications.”
LAND’s value is based on its proximity to high-traffic regions and the ability to host popular applications. It can be traded on the secondary market districtox. One LAND can be purchased for 1,000 MANA, but its value can shift due to positioning and traffic.
Ethereum’s blockchain provides added security and improves the user experience, Mr. Meilich added.
“Ownership of LAND is recorded on the Ethereum blockchain, guaranteeing immutability, while interactions are noted on a network of nodes streams, giving users full control of their land and content sitting on it.”
Decentraland provides incentives to increase the network’s value through contests which encourage users to create art, games, applications and experiences which improve the Decentraland experience.
After the crowdsale’s conclusion, a Continuous Issuance process will see a decreasing percentage of the original MANA to be bought from the smart contract each year. The token is insulated from inflation because users must burn MANA when claiming LAND.
Decentraland’s advisory board includes Aragon project lead Luis Cuende, CoinFund managing partner Jake Brakeman and n3xt creator Diego Doval.
Supporters can participate in the MANA crowdsale with all major cryptocurrencies via ShapeShift.