Dynamically Adjusted Base Price for OVRLands

March 20, 2021

Since the launch of OVRLand marketplace, we gained an incredible traction, over 80k lands sold in less than 4 months and lately an average of 2k open auctions every 24 hours.

Our vision is setting an accessible base price for OVRLands, allowing for the broader possible participation to the OVR ecosystem. This will not change, yet we believe that we can do even better by introducing some dynamic price adjustments to the base price for OVRLands. The new base price for OVRLands auction will be dynamically adjusted depending on the OVRLands bids on that geographic location – pricing algorithm will be open-source.

It will work the following way: Given the hexagon you’re interested in, a neighbor map of n hexagons will be drawn, the base price multiplier will be determined on the % of OVRLands already sold in that area. If you bid for an OVRLand in an area where no land has been bought, the base price will stay $10. However, if you bid for an OVRLand located in an area with high demand, the base price will grow up accordingly, to a maximum of 100$. The world is huge and mostly unsold, so it is quite probable that you’ll still be able to buy geographic coordinates in your backyard for $10. Yet, famous locations base price will not be so cheap for long!

OVRLands are “non-fungible assets” so, price of each OVRLand is just very loosely connected with the price of all other lands. There are millions of lands that can go out for $10, yet there is only one Taj Mahal or Colosseum and their price cannot be directly linked to the price of another random geographic location. Just like in the famous story from J.L.Boges “The Library of Babel” there are billions of books with no value since those are just a random mix of meaningless characters but this just makes the meaningful ones even more valuable.

Despite the non-fungible nature of OVRLands, we still believe that increasing the base price for highly demanded areas will create positive feedback loops from the market while reinforcing the investment thesis of early adopters who decided to invest in OVRLands instead of just holding the OVR token that at the time of writing increased his value by more that 10x. When will we move to this new dynamically adjusted base auction price? The trigger to start with the dynamic base price is set to 100,000 OVRLand sold. That is to say, when we sell up to 100,000 OVRLands, this new pricing technique will kick-off. So, if you still want to access to low base price for hot locations we suggest you hurry up!