Comparing Open and Closed Metaverse Systems

As the digital web progresses, Web3 has emerged as a transformative vision for the internet, built on decentralization, blockchain, and user ownership. As part of this vision, an idea called Metaverse emerged. The Metaverse offers immersive digital environments where users can interact, create, and transact. These virtual spaces are being developed under two primary paradigms: open and closed systems. Closed Metaverses, such as Horizon Worlds, operate within centralized frameworks, prioritizing structured experiences and corporate oversight. Open metaverses, like Decentraland, emphasize decentralization and community governance, empowering users to own and control their digital assets. When choosing between Horizon Worlds and Decentraland, users need to take into consideration the similarities and differences between these Metaverses in terms of governance, economic models, interoperability, user autonomy, and digital asset ownership, while reflecting on their implications for user experience, innovation, and creative freedom. 

Horizon Worlds operates under Meta’s centralized governance, setting the platform’s rules and policies, including its Code of Conduct for Virtual Experiences (Meta, 2024a). Users have limited governance tools, such as the “Poll to Remove” feature, and the platform balances universal rules with user-specific governance for private communities (Meta, 2024b). In contrast, Decentraland uses a Decentralized Autonomous Organization (DAO), allowing its community to vote on decisions such as governance proposals and content policy updates (Decentraland, 2024a). In Meta Horizon Worlds, users can create private communities or "members-only worlds." Members-only worlds allow creators and admins to build exclusive environments for specific interests or activities (Meta, 2024b). In addition, creators and admins govern these worlds, setting their own rules and enforcing guidelines. They handle reports of violations within their community unless they escalate to Meta for platform-level intervention (Meta, 2024b). Similarly, communities in Decentraland can issue membership non-fungible tokens (NFTs), granting holders access to private areas, events, or exclusive content. 

Meta Horizon Worlds relies on a creator monetization program available only in the U.S. This program is by invitation only. The program allows users to sell items within the platform (Meta, 2024c). Meta takes a cut of each sale, including platform fees and additional fees for purchases made through Meta's ecosystem (Meta, 2024c). For example, Meta charges up to a 47.5% fee for transactions, which includes a 30% fee for purchases through the Meta Quest Store and an additional Horizon Worlds platform fee of 17.5% (Meta, 2024e). On the other hand, Decentraland uses its own cryptocurrency MANA, enabling users to buy and sell virtual real estate LAND, wearables, and more, with transactions subject to a 2.5% fee that funds the DAO (Decentraland, 2024b). In addition, Decentraland virtual real estate LAND is limited to 90,601 LANDs, and was sold in initial auctions, raising funds during its early development stages. Also, LAND owners can rent or resell their LAND. 

Interoperability is a key differentiator between the two platforms. Horizon Worlds, as a closed Metaverse, limits user content and data to remain within Meta’s ecosystem, without offering tools to export content for use elsewhere (Meta, 2024a). Decentraland, an open Metaverse, integrates with external wallets, supports NFTs, and enables users to link external wearables and blockchain-based assets. Thus, making Decentraland an accessible virtual environment (Decentraland, 2024c). 

When it comes to user autonomy, Horizon Worlds provides creation tools but limits user autonomy by confining assets and activities within the Meta ecosystem. Users must adhere to Meta’s policies, and creations cannot be exported outside the platform (Meta, 2024d). Decentraland, however, offers greater autonomy, enabling users to create, trade, and control LAND and other assets independently. Users can transfer Decentraland assets across platforms via their Web3 wallets (Decentraland, 2024b). When it comes to data and privacy, Horizon Worlds implements a safety and moderation mechanism that records users' audio and video during interactions. This data is stored for up to two years, specifically to address safety concerns and to provide evidence for reports of harmful behavior (Meta, 2024a). While this policy aims to foster a secure community environment, it limits user autonomy by mandating data collection without an opt-out option. In contrast, Decentraland users have full autonomy over their actions, from creating content to managing their experiences, without surveillance. This model reflects Decentraland’s broader decentralized governance structure, where decisions are made collectively by the community through the Decentraland DAO. 

In Horizon Worlds, creators retain ownership of the content created in Horizon Worlds. However, Meta uses the creator's content as licensed content, so it can be offered to other platform users. Also, the content cannot be transferred beyond Horizon Worlds (Meta, 2024e). Decentraland users, by contrast, have full ownership of their digital assets, including LAND and NFTs. Without limitations on transferring or monetizing these assets in and out of Decentraland via users' wallets (Decentraland, 2024b). 

 
User experience in Horizon Worlds offers a structured experience. Accessible via Meta’s VR devices and supported web and mobile platforms. Horizon Worlds client availability makes the onboarding experiences of users familiar and easy. However, it is only available in 16 countries (Meta, 2024f).  Thus, limiting its reach and leaving out many potential users who would want to join the platform. In contrast, Decentraland provides a more globally accessible experience, anyone with internet access can join. When it comes to availability, Decentraland provides two main ways for users to access its platform: the Decentraland website and the Decentraland PC client. The website serves as a gateway to explore the marketplace, manage assets, and use the Decentraland DAO. The Decentraland PC client offers a more immersive experience, allowing users to navigate and interact with virtual 3d environments. Through the PC client, users can explore LANDs, participate in events, engage in social interactions, and build or customize their virtual spaces. Users can also connect their Web3 wallets to engage in transactions involving MANA, LAND, or wearables directly from the browser. However, the decentralized nature of Decentraland may require users to have a basic understanding of blockchain technology, such as managing private keys and cryptocurrency transactions, which could be a barrier for non-technical users. 

 
When it comes to innovation, Horizon Worlds along with Meta's other software products, such as Instagram, could significantly reach new audiences. For example, creators could seamlessly share videos and images of their virtual experiences on Instagram, reaching broader audiences and attracting more users to Horizon Worlds. This cross-platform functionality would provide creators with additional exposure, marketing opportunities, and avenues to engage with potential audiences outside the platform. With Decentraland, one potential improvement to amplify innovation in Decentraland could be the ability to import and integrate games developed using third-party tools such as Unity. By offering creators the ability to import externally developed content, Decentraland would encourage more diverse and complex applications within its ecosystem. This integration could also attract a larger pool of game developers, further expanding the creative and economic possibilities within Decentraland. 

 
The creative freedom extends to the level at which users can express themselves and create content in the Metaverse system. Horizon Worlds operates under Meta's centralized governance, providing users with creation tools to build interactive environments and experiences. However, this creative potential is bounded by Meta's policies and ecosystem constraints. Content created within Horizon Worlds cannot be exported to other platforms, limiting creators' ability to share or monetize their work externally. Additionally, all user-generated content must adhere to Meta's community standards and guidelines, which may restrict certain types of expression or innovative ideas that do not align with corporate policies. In contrast, Decentraland offers a decentralized environment that significantly enhances creative freedom. Users have full ownership of their digital assets, including virtual land LAND and NFTs, which can be traded or monetized across various platforms. This ownership is facilitated through blockchain technology, ensuring that creators retain control over their creations. Decentraland's open-source nature allows users to design unique virtual environments, develop applications, and integrate external tools and services, fostering a diverse and innovative ecosystem. The platform's decentralized governance, managed by a DAO, enables the community to influence platform policies, further empowering users in their creative expressions. 

Although Horizon Worlds and Decentraland are Metaverses, Horizon Worlds provides a regulated, curated experience, making it ideal for users seeking a regulated and social platform. Decentraland, on the other hand, offers unparalleled creative freedom, decentralized governance, and asset ownership, catering to those who value autonomy and innovation. for users prioritizing ownership, interoperability, and a global reach, Decentraland represents the better choice. However, Horizon Worlds remains a viable option for those seeking easy to use, controlled environments.  

References  

Content Policy. (2024a). Decentraland. 

https://decentraland.org/content 

Terms. (2024b). Decentraland. 

https://decentraland.org/terms 

Linked Wearables. (2024c). Decentraland. 

 https://docs.decentraland.org/creator/wearables/linked-wearables/ 

Code Of Conduct for Virtual Experiences. (2024a). Meta. 

https://www.meta.com/legal/quest/code-of-conduct-for-virtual-experiences/ 

Manage Reports for Members-only Worlds. (2024b). Meta. 

  https://www.meta.com/help/quest/articles/horizon/safety-and-privacy-in-horizon-worlds/manage-reports-members-only-worlds/ 

Creator Monetization Partner Program. (2024c). Meta. 

  https://www.meta.com/help/quest/articles/horizon/create-in-horizon-worlds/creator-monetization-partner-program/ 

Poll to Remove in Horizon Worlds. (2024d). Meta. 

  https://www.meta.com/help/quest/articles/horizon/safety-and-privacy-in-horizon-worlds/poll-to-remove-horizon-worlds/ 

What It Means to Be a Creator in Horizon Worlds. (2024e). Meta. 

  https://www.meta.com/help/quest/articles/horizon/create-in-horizon-worlds/what-does-it-mean-to-be-a-creator/ 

Supported Countries for Meta Horizon Worlds. (2024f). Meta. 

  https://www.meta.com/help/quest/articles/horizon/explore-horizon-worlds/horizon-supported-countries/