8 Traits That All Great Metaverse Tokens Need

With all the buzz about Metaverse, here we bring top factors that all Metaverse tokens need today.

Metaverse is a virtual world expected to function parallel to this real world. Primarily, it is a virtual world where you can work, play games and watch TV shows or movies. You can also enjoy virtual concerts as well as visit art galleries. There are countless opportunities to what you can do within the metaverse. However, you would definitely need some form of cryptocurrency for facilitating payments, and this is where you would need metaverse tokens. 

Metaverse tokens are the unit of virtual currency that you can use for making digital transactions within the metaverse. They entitled you to do exactly what a regular fiat money allows you in this actual world. These limited supply crypto tokens are backed with blockchain technology. For example, you can buy a piece of virtual real estate on XANA Metaverse with $XETA, a metaverse token. And gradually, you can lend it to someone to open a virtual shop when the platform gets crowded with users.

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Factors That Make An Ideal Metaverse Token

Metaverse tokens are the next big thing. These tokens are the latest untapped opportunity and can transform the way brands engage with their audience. Living, playing and working in an alternate reality involves transaction, which means a medium of exchange is needed. For Metaverses that medium of exchange is cryptocurrencies. Just as there are several metaverses to use, there are also multiple cryptocurrencies. There are multiple Metaverse tokens in the market, and more will be added soon. That’s why understanding what factors are needed to make the ideal Metaverse token is very important. This article will go over 8 factors that make the ideal Metaverse token. XANA’s official token XETA has most of these factors, and the team is working towards ensuring that someday it can have all of the factors mentioned in this article.

1. An Ideal Metaverse Token Needs Wide Distribution

An ideal Metaverse token should be widely distributed. The widespread use of tokens is important to provide trust and security, making Metaverse an ideal ecosystem for an economy free of corruption and financial fraud. 

When tokens are widely distributed, the network is less susceptible to the effects of small groups of participants and collusion, threatening the network’s “trustworthy neutrality.” 

The optimal token distribution strategy depends on the underlying economic model of the token (sometimes called the token economy). Typical distribution strategies include Initial Coin Offerings (ICOs), where tokens are sold for a limited time and may use an auction mechanism. Another great way is to gradually reward Metaverse tokens to active users within the Metaverse. A well-distributed coin genuinely can be an incredibly powerful way to bootstrap a network effect.  

XANA uses multiple token distribution mechanisms to ensure that its XETA Metaverse token is widely distributed among its community and users. 

2. An Ideal Metaverse Token Needs Low Inflation

Inflation is a complex economic concept that can be good or bad, but the general belief is that if inflation gets too high and out of control, it can be devastating. A sustainable metaverse token is the one that is resistant to inflation. 

Primarily, low inflation drives spending, financing and borrowing, which are all essential to healthy economic growth. On the other hand, when inflation gets out of hand, it leads to hyperinflation, prices skyrocket, wages stagnate, and currency purchasing power declines. Higher inflation erodes the value of the money you save, and lower inflation drives economic growth, and the Metaverse token only loses a marginal amount of its value. 

3. An Ideal Metaverse Token Needs to be Well Recognized

There are many Metaverse tokens out there, but an ideal Metaverse token is the one that is well recognized by the public. Investing in cryptocurrencies has brought tremendous returns for crypto holders, but this area still poses some risks. Before buying any particular token, ensure that it is listed on a major exchange, has some token value, and is worth buying. A large user base serves as a clear indication of a token’s success. Community-focused initiatives such as airdrops and launchpads, known as initial DEX offering (IDO) platforms, are the primary means for crypto projects to harness an initial user base to make their token well-recognized.  

4. An Ideal Metaverse Token Needs Ability to Offer Governance

An ideal metaverse token allows its users to vote on the platform’s governance via the Decentralized Automated Organization (DAO). These tokens represent each user’s stake and voting power in DAO.

In addition, DAO allows Metaverse token holders to invest in projects, vote on decisions like fundraising, participation in projects, etc. Similarly, XANA Metaverse creator released a governance token earlier this year. The token, named $XETA, can be used in the XANA network aiming to speed and enhance metaverse functioning. Additionally, $XETA allows users to participate in community governance. 

5. An Ideal Metaverse Token Needs to have Certain Deflationary Mechanisms

As the total token supply of Metaverse tokens declines over time it is considered to be deflationary. Deflationary mechanisms for cryptocurrencies like the one Ethereum has not only represent innovative blockchain structures and cutting edge consensus mechanisms, but also a broader range of applications for moving deflationary long-term stores of value from the real world into the cryptocurrency space. Generally, the advantage of deflationary mechanisms for a cryptocurrency is that as the total and circulating supply of a token decreases the value of the token should increase. 

For example, CET, the platform-based token of the global crypto exchange CoinEx, is a token that becomes deflationary via repurchasing and burning. As CoinEx continues to buy back and burn CET, the circulating supply of this deflationary token will continue to decline and the value of CET as an ecosystem-based token will also increase over time.

The ideal Metaverse also needs to use some of the revenue it generates to buy back tokens and burn them, or utilize some other deflationary mechanism to reduce total token supply. The deflationary mechanism will not only balance out any token inflation, but it could also help reduce total supply of the Metaverse tokens in the long run. If in the long run the total supply of tokens is diminishing then each individual Metaverse token will be more valuable. 

6. An Ideal Metaverse Token Needs to Have Reasonable Staking Rewards

Staking allows crypto holders to put their digital assets to work and earn passive yield rewards without selling them. Once you stake your digital assets, you lock up your coins to participate in the Metaverse platform or blockchain operations and maintain its security as well as liquidity. In return, you will receive a reward calculated in percentage yields. 

An ideal metaverse token offers reasonable staking rewards by allowing token holders to stake their assets so they can earn passive yield rewards without the tokens leaving their wallets. $XETA is among the best staking metaverse tokens because staking this coin is pretty simple and easy to stake. Staking such coins is a great way to earn passive yield rewards. 

7. An Ideal Metaverse Token Needs to be Backed by Some Underlying Asset

Asset-backed tokens are digital claims against a physical or digital asset. They can be backed by physical assets like a fiat currency, cryptocurrency or commodity. For instance, USDC and USDT are fiat backed assets. Innovations in blockchain technology have made it possible to have other cryptos like ETH and BTC back an asset as well. DAI is an example of an asset backed by ETH. 

An asset-backed token’s value is directly affected by the value of its underlying asset. Having an asset backing can help reduce token volatility, and diversify the value of the token. Essentially, having an ETH or BTC backing will give the Metaverse token value beyond just the Metaverse its based on, so that its value becomes diversified.

8. An Ideal Metaverse Token Needs its Project to Make Good Revenue

The ideal metaverse crypto is one that has its own project that makes money. It doesn’t make sense to build something if it’s just going to be a business model that loses money on an initial launch. 

The only way for a new blockchain project to generate enough funding is by having a strong business that can create a large number of users and establish itself as a powerful brand. The more users they have, the higher the value of their token will be. The most important thing an ideal metaverse token needs is its project to make good revenue. If it creates enough revenue, then its tokens will be worth more because it means that more people are using the platform. As more people use the platform, there will be more demand for its tokens and this will make them worth even more.


Virtual reality is a technology that makes it easier for people to immerse themselves in an immersive virtual world. The industry is booming and tokens such as XANA ($XETA), Decentraland (MANA), and Mushe Token (XMU) are revolutionizing this technology. As Metaverse tokens continue to grow in popularity, users should always do their own research before making a purchase. 

This article covered eight key features that a Metaverse token needs to become the ideal Metaverse token. They should be widely distributed, resistant to inflation, well-reputed and allow their users to vote on the platform’s governance via DAO. Additionally, an ideal Metaverse token allows owners to stake their assets to earn passive yield rewards over their token holding capacity. 

While no one can predict exactly what the Metaverse will look like or when its final form will emerge, the importance of cryptocurrency to its development is certain. XANA realizes that the ideal Metaverse is not possible without the ideal Metaverse token, which is why the project is committed to constantly improving the XETA Metaverse token, and adding new use cases to it.  


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