When new technologies and platforms are developed, incredible discovery phases occur, during which economic growth eventually picks up and begins to take shape. The metaverse is arguably in that discovery phase, with many entrepreneurs attempting to generate passive income from it.

As economic activity grows, new passive income opportunities, as well as opportunities to actively earn income, are being created on a regular basis. While what works and what doesn't is still being debated, there are some who are at the forefront of metaverse passive income.

What exactly is the metaverse?

Before delving into passive income opportunities in the metaverse, it's critical to first understand what it is. The term "metaverse" has become one of the most popular catchphrases in the Web3 space in recent months, with millions of dollars being moved in digital economies centered on it.

It was coined by Neal Stephenson in his 1992 cyberpunk sci-fi novel Snow Crash. The term is used in the Web3 space to describe a digital world in which people actually own the assets contained within it.

Interoperability is another distinguishing feature of the metaverse. Virtual worlds like the popular videogame Roblox could be considered metaverses, but unlike the newer, blockchain-based iterations, players have no control or ownership over their assets.

Multiple businesses have been moving into the metaverse, with Walmart reportedly preparing to enter the space and fashion brands such as Ralph Lauren and Gucci indicating that virtual clothes could be a significant growth area for them. Companies are entering the space as it rapidly grows and is expected to be worth $800 billion in two years.

Earning passive income in the space could be a wonderful opportunity, given the potential size. Taking advantage of passive income opportunities is simple for those who are already immersed in the metaverse, but it is unclear how long each chance will allow entrepreneurs to earn.

Metaverse land for rent

Property ownership and renting it out is one of the most well-known ways to earn passive income in it. Metaverse platforms such as Decentraland and The Sandbox enable users to rent land to others for a fee.

There isn't a lot of data on what kind of earnings landlords can expect right now because that information isn't widely shared. Nonetheless, it is known to be a lucrative market for businesses looking to host events in the metaverse.

Leasing property

Another way to generate passive income in the metaverse is to lease out assets, as some users may prefer not to purchase expensive NFTs directly.

The popular game Axie Infinity is a well-known example of NFTs being leased to other users in order to earn passive income. The game is based on NFTs known as Axies, which were once quite costly as the game's popularity skyrocketed during the bull market.

Royalties from secondary markets

Some NFT artists have earned substantial royalties from the secondary market, where their works are traded among collectors. The metaverse allows for the same kind of interaction.

It also serves as a great way for people to make money in the actual world, no matter who they are or where they're from. The ability to create, own, and sell goods, he says, creates opportunities that people would not have otherwise.

Virtual reality games

Gaming is one of the most popular use cases in the metaverse, with most of the world either entirely dedicated to it or having a sizable user base dedicated to it. Some make money through gambling, while others make money in other ways.

Other games, on the other hand, have nothing to do with gambling. Some earn money from asset sales, secondary market royalties, or donations. The founder of global investment firm Lemniscap, Roderik van der Graff, said that one of the firm's investee companies had initiated a tower defense game to earn income through the metaverse.


Advertisements are our final option for earning passive income. Setting up large billboards in popular places can attract advertisers looking to capture the attention of the crowd in order to sell their products or services, whether they are in the metaverse or not.

Finding advertisers for these billboards may mean that the income isn't completely passive, as an advertiser may lose interest after a campaign ends, and the billboard owner might have to start looking for another person to rent the space.

In fact, the majority of the options listed above are likely to necessitate some involvement from the entrepreneur. However, true passive income does not exist because even the most passive investments must be monitored on a regular basis.

Is metaverse passive income worthwhile to pursue?

Given the drawbacks, some may believe that generated income is not worth pursuing if it is not entirely passive. According to Burris, the disadvantages include speculative activity and dealing with the fluctuation of the cryptocurrency space, as most transactions are performed in either NFTs or crypto tokens.

It's also worth noting that entrepreneurs may end up placing bets that are later abandoned, rendering their investment worthless, because every passive income incentive in the metaverse is dependent on high traffic.

Because exact figures aren't widely shared, it's up to entrepreneurs to decide whether they want to bet and start building income streams from it or whether they'd rather focus their attention elsewhere. Those who take the risk of making it in the metaverse may have to keep innovating in order to stand out.

If entrepreneurs want to pursue passive income ideas for the metaverse, it's important to note that there are no guarantees that the time or money invested will yield returns, as the space is constantly evolving.

Because many people are still figuring things out, economic activity in the metaverse is still in its infancy. As the metaverse evolves, new opportunities will most likely emerge in the same way they do in the broader cryptocurrency space.

Have you tried any methods for making passive income in the metaverse? Let us know your thoughts by sharing this article on social media.

*Disclaimer: The views, thoughts, and opinions expressed here do not necessarily reflect or represent the views and opinions of Defi Decomplicated.*

Dec 1, 2022
Digital Lifestyle

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