Metaverse - The Source Of Passive Income Online

By Gretchen Clarke- May 24, 2023 40

There is a period of discovery with surprising results as new technologies and platforms are created. Economic activities also started to take shape in it. Metaverse is said to be in the discovery stage, where many investors are involved - looking to make a passive income from it. For most people, the metaverse is a new frontier for passive income. There are many opportunities for users to earn money on these platforms. 

As economic activity continues to grow in the Metaverse, new passive income opportunities are appearing regularly. Although many doubt its reliability, there have been some pioneers in terms of participation and earnings from the metaverse.


What is Metaverse?

The term "metaverse" has been one of the most popular buzzwords in the Web3 space in recent times, as millions of people move into the digital economy centered around it. 

The term "metaverse" is used to describe a digital world where people actually own assets. It is like a world created in a video game using a non-fungible token (NFT). 

Based on blockchain technology (blockchain), this unique type of token allows users to transact freely but cannot be copied. What can be done in the virtual universe is still being explored, but so far, real businesses have been created in this super universe. 

Another standout feature of Metaverse is interoperability. The virtual worlds of popular video games are considered metadata based on blockchain, with players exercising control or ownership over their assets. 

Many companies are moving to metadata, including some of the world's largest retailers, such as Walmart. But, fashion brands such as Ralph Lauren and Gucci state that virtual clothing could be their main area of progress. 

Companies are stepping into the virtual universe as they explore this fast-growing "land," which is expected to become an $800 billion industry within the next two years. 

Some ways to make passive money on the metaverse

With a potential growth scale, passive income in the virtual space will be a great opportunity for investors. Properly exploiting these opportunities can provide a good source of income for those who are already deeply involved in the metaverse. But how long each will allow for monetization is uncertain. 


1.     Land for rent metaverse

The most popular way to make passive income in the Metaverse is to own and rent out the property. Currently, the most popular metaverse platforms such as Decentraland and The Sandbox allow users to pay the cost of renting land from other users. 

Currently, there is not much information about the sources of income that metaverse landlords can earn from land rent as the information is not widely shared. But, it is an attractive market when companies want to host events in Metaverse. 

The metaverse creates an abstract image of real life, where economics. Virtualization is not limited to games. But instead, it expands, becoming tangible and valuable assets beyond the digital realm. 

The economy takes place in a metaverse like Decentraland. Sandbox allows users to interact more globally in real-world decentralized finance ecosystems and beyond.


2.     Rental Property

Similar to land leasing, property leasing is a popular form of monetization in the metaverse as some users may not want to buy NFTs at high prices. 

A famous example of NFT rentals for passive income comes from the NFT game Axi Infinity. The NFT-based game is called Axis. Players need Axies to compete and earn rewards in the form of Smooth Love Potion (SLP) tokens. 

Players who cannot afford to buy get Axies from so-called team managers in exchange for some SLP. In essence, managers earn passive income from Axies like other players - known as pundits - recruiting them to earn rewards. 

Loans, leases, and asset categories are interactions built on metadata. No single seller can limit the rent, use, or control of the market, because the property belongs to the user and not the provider.


3.     Secondary market royalties

Some NFT artists have earned huge amounts of royalties through the secondary market when their works such as songs, NFT paintings, etc. are traded among collectors. Similar interactions can occur in the metaverse. 

Any wearable creator can earn royalties when the assets they create are sold on secondary market platforms. 

Metaverse has a lot of money-making opportunities. With blockchain and NFT, we can unlock a true royalty and ownership model. Here royalties can go to the creator of the original work and continue, providing passive income-worthy work when those items change hands. 

Metaverse is an advanced way for people to make money online. No matter who they are, or where they come from in the real world. The ability to create, own and sell products opens people up to unprecedented opportunities.


4.     Virtual game

Gaming is currently one of the most popular monetization uses in the Metaverse. Most Metaverse worlds are either entirely focused on gaming or have a large portion of users focused on it. The rest earn other types of income. 

Decentral Games' ICE Poker virtual casino is currently the most popular. Since it is based on metadata, there may be additional costs that traditional casinos do not have. 

As with other games, some assets generate revenue through sales, royalties, or donations on the secondary market. One of their portfolio companies launched a new game to generate revenue through Metaverse. The game, called Spark Defense, allows users to "monetize their lands and fully explore NFT collection and ownership."


5.     Advertisement

Another way to generate passive income on Metaverse is through advertising. Placing large billboards in popular areas attracts businesses, organizations, and individuals who want to draw attention to selling products or services. 

In some cases, this form of advertising is not completely passive. Because after the campaign ends, the advertiser may lose interest and the billboard owner must look for other customers to rent.


Should passive income be pursued in the Metaverse?

If the income generated is not completely passive, some argue that it is not worth pursuing because of the limitations that exist. The downsides of Metaverse monetization, experts say, are dealing with speculation and volatility in the crypto space, as most transactions are done using NFTs or tokens. 

It is important for users and creators looking to monetize metadata to check the platforms they use and review the product as a whole. Is the team that created the platform experienced? Is Metaverse doing well? Can it sustain itself through the recession? 

The sustainability of this income stream depends on the success of the Metaverse platform and/or the specific game in which the user intends to generate his passive income. Bet on an "abandoned" metadata world that will make their investment worthless. Because every passive income opportunity in metadata depends on massive traffic. 

Additionally, passive income from Metaverse is a great way to diversify alongside traditional financial instruments, with investment opportunities expanding rapidly as the Metaverse industry develops. 

Since the exact figures are not widely shared, it is up to an investor to bet on the metaverse and start building his income stream on it. 

There is no guarantee that the time or money invested will be returned. Economic activity in the metaverse is still in its infancy and remains to be more thoroughly studied and explored. As the metaverse evolves, new opportunities will likely present themselves in the broader crypto space.