In this article, you will learn what are the tokens used for in Dragon City. Dragon City is the largest plot of virtual space within Decentraland, which itself is a virtual world-building platform powered by the Ethereum blockchain. Decentraland, which launched in 2017. offers users drag and drop tools to build, well, just about anything. It's sort of like Second Life—but on a blockchain.
What is Dragon City in Decentraland?
Dragon City is a blockchain-based virtual Chinese cultural city. It tries to exhibit Chinese culture and investigate the potential for the potential development of human civilization as a large-scale community in Decentraland.
This universe is a multilayered realm that exists outside of physical locations and times in the web and blockchain. Dragon City is a section of the Metamatic Universe dedicated to linking and recreating old Chinese tales and legends. Dragon City aims to create a virtual environment that will serve as people's second home by merging contemporary technology with a vision for the future.
What are the Tokens Used for in Dragon City?
Dragon City district is 6485 LAND in size making it the third largest Decentraland district behind Aetheria and Vegas City. Each contributor (who invested in the district back in December 2017) will receive 1000 'District Community Tokens' (DCT's) per 1 LAND contribution ( ERC-20), which means there will be a total of 6.485.000 tokens in circulation.
These DCT's will then each represent the size of dividend from district profits that the owner will receive, and also serve as weighting of votes within the community.
Users create their unique environments, marketplaces, and applications using Decentraland's three native tokens: LAND, Estate, and MANA. ERC-721 tokens, like LAND and Estate, make each token unique. Because of this factor, they're not interchangeable and are referred to as non-fungible tokens (NFTs). This means that they don't act as currencies but are used to create avatars, wearables, and unique parcels of land.
MANA is an ERC-20 fungible token that serves as Decentrand's digital currency. It can help users create decentralized games, apps, and other services and lets them monetize their creations, in that it allows them to digitally build what they wish and explore the virtual space at will.
Interesting Insights into the Dragon City Ownership Model
There will only ever be 6.485.000 tokens. No tokens will ever be added, or destroyed. Tokens can only be collected by the landlord (contributor). Each 1/1000th represents a true % ownership on every piece of LAND. In theory, each individual parcel of LAND within the district could have 1000 unique owners.
There is no time limit set to collect your DCT (district community tokens). Even unclaimed DCT's will continue to accrue their portion of district profits, even if left unclaimed.
This ownership model encourages increasing accessibility for non-contributors to buy in, which in turn should attract new entrepreneurs and developers to have an invested interest in the success of the district.
It is still unclear if these DCT's can be traded at the present moment, but highly likely they will be able to be bought and sold, peer-to-peer, in the not so distant future.
Bottom Line
Contributors to Decentraland's Dragon City district can now collect their equity share tokens. This article is about what are the tokens used for in Dragon City.
