Decentraland parcels are becoming scarcer and more valuable. The first auction (January 2018) was a huge success, accumulating more than $30 million (at that time). A month ago, Decentraland allowed its community to cast votes regarding the next Decentraland auction. The community could choose either Q4 2018 or Q1 2019; they voted Q4 2018.
First Auction Overview
The first LAND auction had roughly 3,000 participants, who spent more than 160 million MANA in transactions. Users bought exactly 34,356 parcels, with an average value of 3,651 MANA per parcel (some parcels were more expensive than others). 9,331 parcels didn't sell, and will now be available for purchase in the second auction.
The platform exploded after their first auction. Users were claiming LAND, polishing them, upgrading, trading, selling and buying. Decentraland claims that, over the past month, the average price of a parcel rose to 19,103.673 MANA (approx. 550% increase). This is without a doubt an excellent call to action to all users that are considering the idea of participating in the second LAND auction.
The Magnitude Of The Second LAND Auction
The second auction is an excellent opportunity for all users that wish to invest in Decentraland. Both new and existing users will be able to buy LAND. Moreover, the second LAND auction will have the following options:
- Users will be able to buy several adjacent parcels at once, which is quite challenging to do via the public marketplace. Those that own several adjacent parcels will be able to build Estates, which are far more valuable than the individual parcels.
- Users will have the option to expand their current parcels and Estates by purchasing the adjacent unclaimed parcels.
- Everyone will have the opportunity to buy the parcels, upgrade them, and build their 3D assets (and later profit from their actions).
Introducing The Dutch Auction
The second LAND auction will feature a Dutch auction. This means that all unclaimed LAND will start at the highest possible price and decrease as the action unfolds. Users will then be able to select and place an order on the parcel they want when it reaches a price they find attractive.
Users will also have the option to buy whole Estates, meaning that they’ll be able to purchase several parcels at once (for a fair price). Decentraland decided to implement a Dutch auction to eliminate the frustration and anxiety that exists in the traditional auctions. Moreover, the Dutch auction will give all users an equal opportunity regarding the LAND purchase.
How Can You Buy Your Piece Of LAND?
Users need to have the following tools to participate in the auction:
- Desktop browser with installed MetaMask
- Trezor, Mist, or Ledger wallet with a sufficient amount of MANA to purchase the LAND
MANA used in the auction will burn, meaning that the underlying tokens will be destroyed or sent to an irretrievable address. Furthermore, 95% of other crypto tokens used in the auction will be converted to MANA, and that MANA will also be destroyed. The remaining 5% will either be burned or sent to a zero address and removed from circulation.