Decentraland: everything you need to know about MANA

What is Decentraland?

Decentraland (MANA) is a blockchain platform with a virtual world where users can create, explore, and trade in their own digital environments via the Ethereum blockchain. In Decentraland, users can purchase land, create and trade digital objects, build interactive experiences, and participate in social activities such as games, events, and virtual parties. 

The platform is community-managed, and participants have full control over their virtual properties and experiences, creating a decentralized and democratic environment. The native cryptocurrency of Decentraland is MANA, which is used for transactions within the virtual world and as a means of payment for land and digital object purchases.

How does Decentraland work?

In Decentraland, users have complete ownership of all virtual assets they possess within the virtual world, and these assets are stored on the Ethereum blockchain. Users can explore a 3D environment and create interactive experiences, offering unique and immersive opportunities. The platform boasts a thriving digital economy where users can buy, sell, and trade land, digital objects, and experiences using the MANA cryptocurrency. The platform is community-driven, meaning anyone can contribute to the development of the virtual world by building new experiences, organizing events, and other activities, fostering a dynamic and creative community.

The MANA token

The MANA token is used as the primary currency for transactions within the Decentraland world. MANA can be earned by creating content and experiences that others can explore or by buying and selling virtual land and other digital assets. 

Additionally, MANA can be used to purchase voting tokens to vote on decisions related to the platform's development. MANA can also be staked in "land pools," granting users voting rights over specific virtual territories and a share of the profits generated by activities on that land. 

Decentraland also has a token burn program, where a portion of MANA from transactions is permanently removed from circulation. This creates a deflationary effect on the value of MANA as there will be less of the cryptocurrency available as more of it is burned.

The Technology Behind MANA

The technology behind MANA is built on Ethereum and the InterPlanetary File System (IPFS). Decentraland aims to give users control over their digital assets and provide an open, transparent, community-managed platform.

The Decentraland world is divided into virtual territories that users can customize and create interactive experiences for others to explore. Decentraland utilizes web technologies like HTML, CSS, and JavaScript, and these experiences are hosted on IPFS. Users can host and share them without relying on central servers or services.

Decentraland is governed by a DAO, meaning it's community-driven. MANA tokens allow users to vote on platform developments, such as feature updates and rule changes for virtual territories.

Decentraland collaborates with Ethereum projects, including ERC-721 for unique digital assets, which are crucial to Decentraland's economy.

The Decentraland ecosystem

The Decentraland ecosystem comprises several components that together provide a decentralized virtual world to users: 

• Virtual world: The virtual world consists of various territories owned by users that they can explore, customize, and develop as they see fit. 
• Ethereum blockchain: All assets and properties are stored in smart contracts on this blockchain, giving users full control over their digital assets and enabling secure and transparent trading. 
• InterPlanetary File System (IPFS): All interactive experiences in Decentraland are stored on IPFS, allowing players to share and host their experiences without relying on central servers. 
• MANA token: The cryptocurrency used in the Decentraland ecosystem. Users can use MANA tokens to purchase virtual territories, buy and sell digital objects, vote on important developments, and pay for various services within the virtual world. 
• Decentralized Autonomous Organization (DAO): The Decentraland DAO is community-managed and responsible for the platform's management and development. 
• Community: Decentraland has an active and engaged user community that contributes to platform development by creating new experiences, organizing events, and conducting other activities. 

Benefits of Decentraland

Decentraland offers several advantages to its users: 

• Accessible platform 
• User-friendly interface 
• Marketplaces for NFTs and other digital assets 
• Regular updates 
• A major player in the Virtual Reality world

Drawbacks of Decentraland

While Decentraland has its advantages, there are also some disadvantages to consider. What are the disadvantages of Decentraland that investors should be aware of? 

• Strong competition from both the blockchain and Virtual Reality industries 
• Relatively limited interaction possibilities 
• Lack of diverse content

Who is the founder of Decentraland?

The founder of Decentraland is the Decentraland Foundation, the organization behind the development of the Decentraland software. It was, in turn, founded in 2015 by Esteban Ordano and Ariel Meilich. 

The Decentraland team conducted an Initial Coin Offering (ICO) in 2017, raising millions to fund future activities. The Foundation, retaining 20% of the initial token supply, holds intellectual property rights and maintains the Decentraland website. 

Before launching its platform, Decentraland initiated a Decentralized Autonomous Organization (DAO) to transfer project management to its users. Furthermore, the founding team claims that the private key controlling Decentraland's smart contract has been destroyed.

Price forecasts

In 2026 experts expect a minimal price of €1.18 and a minimal price of €3.91 in 2031.