Earlier this year, Index Coop updated the Metaverse Index’s (MVI) methodology to reflect the trend of Metaverse and Gaming activities in virtual economies powered by blockchain technology and NFTs.
This growing ecosystem has the potential to disrupt traditional industries such as finance, entertainment, and social media, and create new business models that are more inclusive and decentralized.
In early March, the Index Coop rebalanced MVI in accordance with the updated methodology to include Ethereum Name Service (ENS), ImmutableX (IMX), and Gala Games (GALA). Due to them not meeting the new methodology criteria, YGG, DG, REVV, WAXE, NFTX, WHALE, ERN, TVK, RLY, and RARI were removed from the index.
Here’s a closer look at the three new tokens included in MVI:
Ethereum Name Service (ENS) is a decentralized naming system built on the Ethereum blockchain. It allows users to register human-readable domain names and map them to Ethereum addresses, smart contracts, and other resources on the network.
From March ‘22 to February ‘23, ENS generated ~$44.4 million in revenue. They experienced significant growth in 2022, with 2.2 million new ENS names registered, representing around 80% of all domains created since the service started in 2017.
ENS’s governance token is also called ENS. ENS token holders have voting rights in the ENS DAO, which is responsible for making decisions related to developing and expanding the ENS protocol.
One of the most significant collaborations between ENS token holders is the creation of the ENS Constitution, which outlines the rights of ENS domain owners. In addition to governance, ENS tokens can be used to allocate funds for Web3 projects and appoint DAO directors. ENS tokens are available on major centralized and decentralized exchanges.
ImmutableX (IMX) is a Layer-2 scaling solution for Ethereum. It is built by Immutable, a blockchain gaming company, and aims to be the leading developer platform for building and scaling mainstream-ready web3 games on Ethereum.
Immutable X uses zero-knowledge proofs (ZKPs) and rollups to enable fast and low-cost transactions on Ethereum while maintaining the same level of security as the Ethereum mainnet. Today, many top web3 games are built on ImmutableX, including Gods Unchained, Guild of Guardians, Illuvium, Embersword, and Planet Quest.
The IMX token is used for transaction fees, staking, and governance. Twenty percent of the protocol fee on every ImmutableX transaction must be paid in IMX. If you do not currently own IMX, Immutable converts the fee by purchasing IMX on the open market. All fees paid in IMX are sent to the “staking reward pool.” By staking your IMX, you'll earn rewards from this pool if you meet the eligibility requirements.
IMX holders can also use the token for the Immutable X network governance. Proposals related to the development and expansion of the protocol are published on Snapshot, and IMX holders can vote on these proposals to determine the future direction of the network.
Gala Games (GALA) is a blockchain-based gaming platform that aims to create a decentralized gaming ecosystem where players can fully own and control their in-game assets and experiences. It was founded in 2020 by Eric Schiermeyer, who is also a co-founder of Zynga, a well-known mobile gaming company.
Gala Games uses blockchain technology to create a secure and transparent gaming experience. Players can earn cryptocurrencies such as GALA by playing games, creating content, and contributing to the community. The platform is built on the Ethereum blockchain and uses the Polygon network for fast and low-cost transactions.
GALA is the native cryptocurrency of the Gala Games platform and is used for various functions such as transaction fees, in-game purchases, and rewards for players. It is an ERC-20 token that can be traded on multiple cryptocurrency exchanges and staked to earn rewards on the platform.
Index Coop believes that the combination of the metaverse and web3 gaming will lead to the emergence of a new digital economy where users can earn and spend cryptocurrencies within a virtual world. This has the potential to disrupt traditional industries such as finance, entertainment, and social media, and create new business models that are more inclusive and decentralized. The changes to MVI aim to provide a more reliable and stable index composition that more accurately captures this emerging ecosystem.