I am considering that Decentraland turning to close. More and more users are leaving the platform. MANA token price is heading down. Developers are partying and having fun, they are not developing the project in any way, key people are leaving for other promising projects
Discussion:
https://bitcointalk.org/index.php?topic=5511271
The Metaverse Autopsy: What Really Happened to Decentraland
The rise and fall of Decentraland offers valuable lessons for the future of virtual worlds. From speculative land booms to missed opportunities for creators, here's what went wrong—and how the next generation of digital platforms can avoid the same mistakes. Written by Matt Bond.
The metaverse was supposed to be the future. Instead, it became a punchline.In October 2021, Facebook changed its name to Meta, and suddenly the metaverse was everywhere. CEOs couldn't stop talking about it, brands couldn't stop building in it, and your uncle couldn't stop asking you to explain what an NFT was.
Then, just as quickly as it arrived, it vanished – leaving behind empty virtual worlds, worthless digital land, and a collective "what the hell was that all about?"
Most people have filed the whole era under "weird tech fever dream we'd rather forget." But not me. As someone who was building in Decentraland – the leading metaverse platform – before the hype train arrived and stuck around long after it left, I think that's a mistake.
The story of Decentraland's rise and fall isn't just about crypto speculation or metaverse mania. It's about fundamental platform design principles that matter more than ever as we navigate the AI revolution and the continued growth of virtual worlds like Roblox.
These are the reflections of somebody who experienced DCL from the inside – what really went wrong, why it matters, and what it can teach us about building the next generation of digital platforms.
When Virtual Worlds Feel More Real Than ZoomBefore I break down what went wrong, let me tell you why I fell for the metaverse in the first place.
Before COVID, my company Treble hosted hundreds of creators at weekly events in New York and Chicago. These weren't just parties – they were living, breathing ecosystems where musicians found collaborators, brands discovered talent, and culture was born in real-time. When lockdown hit, we pivoted to Instagram Live events. We even launched a "successful" campaign for Jägermeister built around virtual Instagram Live concerts. But something was missing.
Gone was the electricity of spontaneous connection, the thrill of spotting your next collaborator across a crowded room, the excitement of pulling up to the function in that new jacket you just copped. A comment section just isn't the same as a crowd.
Then I discovered Decentraland. Sure, it was buggy. The animations were cartoonish. But walking through those virtual spaces, I saw something familiar: people forming circles to chat, showing off their digital fashion, building micro-communities and subcultures. It was still in its infancy, but it felt alive in a way that endlessly scrolling feeds never could.
But the real mind blower for me, the key to Decentraland's brewing revolution, was its now-infamous calling card: virtual land.
Yes, "virtual land" sounds silly. I get it. But the concept behind it, and the promise of freedom and equity that it carried, was fascinating: Community members could purchase permanent "parcels" inside the virtual world and build whatever they wanted on them. While Instagram and YouTube were extracting value from creators, Decentraland promised something different – a chance for community members to share in the platform's success. As userbase and activity grew across the platform itself, your virtual real estate would gain value as a media property. You weren't just a user; you were an owner.
In those early days, it created something magical. Land owners became fanatically passionate evangelists for the platform – literally bought into its success.
These digital pioneers gave everything to help the platform succeed, with a level of devotion that money could never buy and engineers could never build.
Every week, the community gathered for town halls to discuss and vote on important platform decisions and funding. Standing in those virtual meeting spaces, it felt like being one of the founding fathers of a new digital nation. We weren't just early adopters on someone else's platform – we were settlers, working together to build something unprecedented on pixelated soil.
The vision was beautiful. The execution? Well, that's where things get interesting…
The Digital Land Boom That Became a BustThe vision for virtual land was all about ownership, permanence, and equity. The reality? A speculative gold rush that left the world barren.
As land prices skyrocketed, it became increasingly difficult for actual builders to access property. Meanwhile, many of the people who did own land didn't have the time, skills, or vision to develop on it. Instead of thriving virtual neighborhoods, large portions of Decentraland remained empty – digital ghost towns owned by investors who never intended to contribute.
Perhaps a better approach would have been to grant land to creators based on vision and contributions, similar to how MANA grants were distributed. By tying ownership to participation and vision rather than speculation, Decentraland could have ensured that those who built value in the world were also the ones who owned it.
Or, perhaps Decentraland's product team could have prioritized a land leasing marketplace or fractionalized ownership tools, so that land owners could connect with motivated land developers. Instead, the platform ended up with the worst of both worlds: creators without land, and landowners without creations.
The Reverse Network Effect: How Decentraland Made Itself SmallerSuccessful platforms thrive on network effects. The more people use them, the more valuable they become. Roblox, LinkedIn, Fortnite, Facebook, Amazon, Spotify and every other category defining digital platform that you can think of all follow this pattern: new users create content, which attracts more users, which encourages even more content creation.
Decentraland, however, implemented policies that actively worked against network effects. High land costs prevented new creators from entering. Higher $mana prices meant more expensive publishing fees for wearables creators on Decentraland’s marketplace (more on that later.) A lack of incentives for users to build connections on the platform meant fewer users were online at any given time. And because experiences weren't centralized or curated effectively, new users often found themselves wandering aimlessly through empty spaces. Instead of a self-sustaining flywheel of growth, Decentraland created a vicious cycle of decline.
A healthier model would have focused on reducing friction for new users and builders. Providing incentives for engagement, lowering the barriers to creation, and ensuring that new visitors could easily find active communities would have prevented the slow bleed of users who tried Decentraland once and never returned.
The UX Disaster: Dropped into the VoidImagine you're visiting a new city for the first time. You step off the train, expecting some kind of guidance—signs pointing you to different districts, recommendations on where to go. Now imagine instead that you're dropped into the middle of a chaotic rush-hour crowd with no map, no local recommendations, and no idea where to start. That was Decentraland's onboarding experience.
New users were unceremoniously dropped into Genesis Plaza, a chaotic hub that offered no clear guidance. There was no onboarding experience, no curated recommendations, and no introduction to active communities.
Decentraland could have easily improved their onboarding by guiding users toward bustling communal hubs, either inside the platform or even on popular DCL servers within Discord. They could have offered educational resources on wearables and experiences via a knowledge library, or created personalized onboarding journeys based on your interests. At the very least, they could have scrapped Genesis Plaza entirely, burned its memory from the archives, and replaced it by routing newly created accounts directly to their events page. Instead, new visitors were left to fend for themselves—and most never came back.
All of this ladders back to one thing—bad product strategy. From the jump, Decentraland’s dev team should have prioritized its efforts on finding DCL’s magic number—the key action or experience that significantly increased the chances of user retention. For example, in the early days of Facebook, their product team famously discovered that when new users connected with seven friends within ten days of signing up, they were significantly more likely to stick around.
This “seven friends in ten days,” magic number became a guiding onboarding design principle for them. It became their northstar that they focused their product development strategy around. And as a result, they mastered their onboarding UX. In DCL’s case, whether it was attending a live event, joining an active community, or customizing an avatar, identifying this metric and designing the onboarding UX around it could have dramatically improved engagement and retention.
Failing the Creator Economy: A Missed OpportunityDecentraland's greatest asset was its scene, a bustling community of builders, designers, and event organizers. But instead of nurturing this ecosystem, the platform consistently sidelined them.
During major events like Metaverse Fashion Week, Decentraland’s single main focus was recruiting, servicing, and spotlighting big-name brands. In many ways, it seemed like they viewed the very presence of these global companies in DCL as the ultimate validator of their platform’s success, and as a result, they presented their branded activations as the main attractions of these tentpole events. However, their activations were often static and uninspired.
Meanwhile, community-driven fashion shows—which featured the creators and collectors at the heart of the platform's emerging fashion scene—were pushed to the outskirts, invisible to most visitors. The same thing happened with the Metaverse Music Festival: major acts were booked, but the community artists and experience designers who had been the lifeblood of Decentraland were treated as an afterthought.
To be clear, I have no issue with big brands. Quite the opposite. In fact, I actually helped oversee some of the biggest Decentraland campaigns and activations over the years. And without exception, the most successful ones always tapped creators and community leaders who were invited to collaborate with the brand as a true partner in developing their experience. In cases like Metaverse Fashion Week, Decentraland missed a huge opportunity to collaborate with its top community creators, integrating them into high-profile brand events.
Instead, it chose to cater these crucial moments exclusively around outside corporations that didn't understand the culture—and in doing so, it alienated the very people who had made the world feel alive. On the flipside, brands who were investing in the platform during these tentpole events missed out on huge potential ROI via connecting with the culture and actual scene that inhabited it.
Newcomers entering the platform for the first time spent their visit awkwardly wandering around these 3D branded spaces, knowing nothing of the virtual ragers at the DollHouse, elaborate builds crafted by DCL's premiere builder community, Last Slice, or the countless creative minds designing virtual fashion and art across the platform.
The Wearables Marketplace: A Monetization MisstepVirtual fashion is a multi-billion-dollar industry. It was the most important asset in DCL’s economy. Decentraland had the opportunity to build a thriving marketplace for digital wearables, but its approach was deeply flawed.
Instead of taking a percentage of sales, Decentraland charged creators upfront fees in the hundreds of dollars just to list their items. This discouraged new designers from participating and created an unnecessary financial barrier to entry. Worse, the marketplace had no effective curation system. This resulted in an oversaturated inefficient discovery experience. There was no homepage featuring the best work, no way for newcomers to gauge what was valuable, and no structured discovery experience.
Other platforms, like Roblox and Fortnite, have excelled in virtual fashion by focusing on accessibility and visibility. They take transaction fees rather than charging huge listing fees, ensuring that the best creators aren’t priced out of participating and the best content rises to the top organically. Decentraland failed to follow this model, and as a result, its wearable economy never reached its full potential.
The Takeaways: How to Build a Thriving Digital WorldDecentraland was a big beautiful experiment. In retrospect, it is a cautionary tale for all future metaverse platforms. As AI-driven virtual worlds like Hyperfy and platform giants like Roblox continue to grow, there are key lessons to take away:
1. Don't let speculation kill participation. Reward creators based on contributions, not just financial investment.
2. Network effects are everything. Make it easy for new users to engage, create, and share.
3. Onboarding matters. Guide users into relevant communities and experiences before you lose them for good.
4. Support your creators. If your platform thrives on user-generated content, treat your best creators as partners, not afterthoughts.
5. Monetize smartly. Transaction fees encourage growth; high upfront costs discourage it.
The next generation of digital platforms needs to learn from Decentraland's mistakes—or risk becoming a virtual ghost town.
https://cryptonews.net/news/metaverse/30613850
Show Posts
