From Silos to Synergy: The Business Case for an Open Metaverse

We’ve heard it many times- Why would a popular virtual world connect with other worlds and risk losing users and revenue?  Decades ago siloed platforms like AOL, CompuServe, and MSN were probably asking the same question when Netscape Navigator launched, and we all know how that story ended.  But the open metaverse is not about destroying incumbents in favor of a new order.  The open metaverse is about increasing value for everyone, and here are the reasons why:
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1. True Digital Asset Ownership

In today’s siloed metaverse virtual items like skins, avatars, and digital art are locked to specific platforms. This limitation puts a ceiling on the prices users are willing to pay for items, as their utility is restricted and there is always the risk that the platform might revoke the item or go out of business.  The open metaverse changes this by allowing users to:

• Carry items across worlds: A sword purchased in one game could be displayed or used in a different world.
• Truly own items: Users gain complete control over their digital assets and can hold and sell them independently from the creator of the item.

Since user-owned and user-controlled items provide greater utility and flexibility,users will be willing to invest more in them. As item values increase,all platforms in the open metaverse benefit.
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2. Expanded Market Reach for Creators and Developers

An open metaverse fosters a dynamic, interconnected economy that empowers creators and developers, driving innovation.  In a siloed metaverse, creators are constrained by the user base of a single platform. The open metaverse breaks down these barriers to unlock two force critical advantages:

• Increased demand: With the same effort Artists, designers, and developers can reach a broader audience across multiple platforms, significantly boosting their return on investment(ROI).
• Easier collaboration: Shared standards across worlds enable creators to experiment and collaborate more easily, leading to richer content and novel use cases.

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3. Growth through a user-creator flywheel

Interoperability creates a richer, more inclusive metaverse experience, drawing users from closed ecosystems into a more interconnected and dynamic environment. Just as in the early 1990s when online experiences were dominated by closed platforms the open internet democratized online access, allowing companies like Yahoo and Google to thrive. The open metaverse can create a similar transformative dynamic, opening up new opportunities such as:

• Cross-world item sales: Offering exclusive items that appeal to users across multiple worlds (OMA3 members are currently developing such projects).
• Portaling fees: Charging for seamless transitions between worlds or other services.
• Partnership opportunities: Collaborating with other worlds to create shared experiences and events.

This ecosystem generates greater revenue opportunities, attracting more creators to the open metaverse. Higher-quality creations emerge, drawing more users and fueling demand for even more innovative content. This self-reinforcing cycle benefits everyone creating a vibrant and sustainable metaverse economy.
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“Open” Creates Value

The open metaverse represents a paradigm shift from closed ecosystems to a connected, user-centric digital world. Achieving this vision requires collaboration among platforms, creators, and users to establish shared protocols, interoperable asset formats, and transparent governance structures.
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History has repeatedly shown that open, interconnected systems like the internet, Linux, and decentralized finance create exponential growth for all participants.  It’s time to bring this transformative approach to the metaverse.