Written by Robin Prock
Take the location.
A pinch of soil texture. A spoonful of the state of the development — and a ladleful of other factors. Then stir it together, and there you have it:
The value of your land. Only, unfortunately, in the real world.
You won’t get anywhere on the blockchain that way… but how do you know how much your LAND is worth? — Without appraisers and surveyors?
For that, you have MGH (MetaGameHub DAO).
We’ve developed an AI algorithm to determine the value of LANDs in the Sandbox (soon Decentraland will follow) — here’s how it works:
That’s How MGH’s Algorithm Evaluates LANDs
Don’t get intimidated by the following numbers :)!
Below we have a TLDR for you.
- Go to metagamehub.io/valuation and enter the following data in the search field: either the token ID (you can find it on OpenSea) or the coordinates. (Note: Currently we can only evaluate LAND that has already been traded. However, we are working like ancient Egyptian workers on the Pyramid of Cheops to record every LAND on OpenSea).
- Now we extract the historical data to calculate the daily median prices. That’s what our Neural Network does. What’s that?
- Those are nodes that mimic the human brain. They recognize patterns and learn — like Google’s search algorithm. The Neural Network now predicts a price and sends it to the API. But that’s far from it…
- After all, you have neighbors — either businesses, malls, games, etc. that attract visitors; or a digital offshoot of the Gobi Desert (not so good). They too are evaluated by the same game: Check database, extract historical data, and adjust it to daily median prices. Only a twist is added:
- Has the LAND been sold before or not? All this information is combined and again sent to a trained Neural Network. This in turn predicts a price …
- …and sends it to the API. The prediction is restored with respect to the daily median prices and is then returned by the API. Finally…
- Finally, the valuation is parsed to other cryptos using CoinGecko and you get your fair and transparent valuation:
Thanks for the numbers! But TLDR.
We calculate the daily average price of your LAND and that of your neighborhood. From this, the Neural Network predicts a valuation. It’s constantly learning and getting better — like a human brain that gathers more knowledge every day.
But how do we guarantee that our algorithm is always up-to-date?
- Every hour a script extracts all new transactions and checks them for relevant data.
- We then collect LAND’s details from OpenSea and store the combined data in our database.
- Our API notices this. If new data is available, it updates the internal variables of our algorithm.
Think of it like prospectors in Jamestown, wading through the South Fork every hour with a sieve and sifting the gold from the riverbeds….
…only we’re not sifting for gold, we’re sifting for valuable data.
Finally, one question remains:
Why should you care about getting a fair price for your LAND?
A Fair Price for your LAND: Why You Should Care
The famous investor Benjamin Graham once told a bizarre story:
An oil-seeker died and went to heaven. There St. Peter received him — only unfortunately with bad news:
“Normally you might enter, but, as you see, the place for oil-seekers is crowded. We can’t squeeze you in anymore.”
The oil-seeker reflected and then said, “May I at least say four words to my brothers?”
St. Peter nodded and agreed — this proposal seemed harmless to him. So the oil-seeker stepped up to his comrades, spread his arms, and said in a loud voice:
“Oil discovered in hell!”
Immediately, all the oil seekers gushed out of heaven like oil from a pipeline, seeping down the stairway to heaven and dripping into hell. St. Peter was impressed and invited the oil-seeker in. The latter, however, waved him off, saying:
“I think I’ll go with the rest. There might be something to this rumor after all.”
Today, the NFT market is like oil in hell: FOMO, hype, and hope rule — no analysis.
That’s nobody’s fault. After all, the NFT market is still incredibly young, valuation models are still missing.
Many investors could get their fingers burned if they buy into the hype, overpay, and end up holding the proverbial bag.
MGH wants to prevent that, and our AI-driven algorithm is the first step in that direction.
For now, it’s limited to LANDs, but we’re working on expanding it to more NFT classes so that there are tangible ratings for NFTs — and across all NFTs.
In this way, we make the market transparent for everyone and make it easier for new investors to enter.
Our goal is that no one in the market will run to hell anymore if someone yells:
“Oil discovered in hell!”
P.S. As a reminder:
If you want to evaluate your Sandbox LAND, use our valuation interface here (metagamehub.io/valuation).
Are you satisfied with the result?
Feel free to write it in the comments!
How Can You Stay up to Date and Keep in Touch with MGH?
- If you want more information about MGH, visit our Website.
- For a sharpshooter-like view over the whole project, read our Whitepaper.
- Follow us on Twitter.
- Follow us on Instagram.
- Check out MGH on LinkedIn.
- Discuss, write, and celebrate with us on Telegram.
- Talk, laugh, and enjoy the time on Discord.
MGH is an Ethereum-based protocol allowing its users a.) to mint NPTs to gain exposure to the whole NFT space, b.) stake their NFTs to make a passive income, and c.) get a fair price for their NFT via the MGH price oracle.
With these three use cases, MGH makes the whole NFT space more transparent (fairer prices), accessible for investors with smaller pockets (via NPTs), and combines DeFi and NFTs via staking NFTs to make a passive income.
In short: MetaGameHub DAO is the convergence of DeFi, NFTs, the metaverse, oracles, and AI-supported valuation tools.