The “Metafluence” project is a virtual metaverse city where individuals and brands can set up businesses in spaces called MetaHuts and generate income.
Interview with the CEO of Metafluence
It has been just over a decade since the birth of blockchain technology. Still, without exaggeration, this technology has brought about significant changes in various industries. The “Metaverse,” as one of the youngest fields within blockchain, has played a substantial role in this transformation. The pace of these changes has been so rapid that many countries have not had the opportunity to understand, utilize, or even regulate this industry fully.
In this issue of the Blockchain Research Journal, we had a conversation with Emin Vali, CEO and co-founder of the multinational project Metafluence (accessible at metafluence.com), and asked for his views on the metaverse industry and the issues surrounding this topic. The full interview follows.
In recent years, in addition to blockchain, many of us have repeatedly heard the word “metaverse” in cyberspace. But where is the metaverse? Emin commented on this topic: “The metaverse is a new trend in technology, formed from the combination of fields such as video games, blockchain, and in our case, influencer marketing. Of course, this last element can vary in different projects depending on the founders’ goals. So, to simplify this megatrend, we call it the metaverse.”
Every system and structure has its unique components, and the metaverse is no exception. As an active expert in this field, Emin explained: “The first component can be considered the 3D environment of the metaverse and avatars. The next component is digital assets or NFTs, and the third component is the interoperability between different metaverses. The user should be able to explore and move between different metaverses, just like how web browsing currently works across websites.”
Where Users Experience Blockchain Environment Instead of a Two-Dimensional Space
In response to whether there’s a significant difference between websites and the metaverse, Emin Vali stated, “The usage should not differ much; in the metaverse, users navigate a 3D space on a blockchain platform instead of traditional Web 2.0. Their wallets connect, enabling them to manage their digital assets and conduct transactions, creating an economic system.”
Interestingly, despite the developments in the metaverse, many primary projects are still in testing phases. Vali emphasized, “To consider the metaverse a reality, all three components must work together in most projects. We’re still in the nascent stages. Once virtual worlds and their economies become organically bustling, we can say the metaverse truly exists.”
Metafluence’s CEO spoke about the time needed to complete this process: ‘As I mentioned, we are at the beginning of the journey, and in my opinion, we need at least five to ten years to reach that point.’ But the question arises of how one can envision a five- or ten-year horizon with the rapid development of blockchain and metaverse technology, a matter that Emin explained: ‘My little daughter spends half of her time creating avatars using various kits and apps. She dresses up the avatar in new clothes, and changes its hair, while my daughter is only four years old. Now imagine, in 10 years, these kids will all be teenagers. This generation is born into this technology. They know what an avatar is and live with it; but for our generation, this field and technology are new, just like social media was new for many people about 10 years ago. However, those same people are now among the most active users.'”
“Metaverse success is still decades away, requiring significant technical advancements and potential adjustments in business policies and user behaviors. Nevertheless, the beginnings of its expansion and development are already perceptible.”
As we transition from Web 2.0 to Web 3.0, social networks are evolving. Emin Vali asserts that the future of social media is indeed the metaverse, representing the next phase of internet development. While we will still operate on the internet, the focus will shift from browsing websites to exploring corporate and retail metaverses. This transition won’t be absolute; many will continue using traditional Web 2.0 platforms. The metaverse can be seen as a social network where users engage through avatars instead of profile pictures.
Traditional businesses faced a stark reality when forced to migrate to online platforms; those that resisted have largely failed. Vali emphasizes that the metaverse will change online shopping. As brands create 3D environments, they are actively promoting their products in these new spaces. For example, to sell shoes to Generation Z, marketers will need to attract their attention through metaverse-based social platforms, leading to new ways of visualizing and presenting products. Many fashion brands are already generating significant revenue in this realm, drawing substantial investment into the metaverse.
“The metaverse is on the rise and is not merely a playground. Future worlds will be photorealistic, governed by the laws of physics, inhabited by human avatars and AI entities. We will create a future in the metaverse before it materializes in the physical world,” says Jensen Huang, CEO of Nvidia.
Emin Vali discusses brands that have embraced the metaverse from the outset and are already generating revenue: “Many fashion and sports brands are present in Web 3.0. Just as Adidas and Nike compete in the real world, they are also vying against each other in the metaverse. These brands have launched their platforms in Sandbox and Decentraland, hosting games and events. Traditional brands like Gucci are also very active in Web 3.0, selling digital versions of their products, such as handbags, for prices like $3,000 or $5,000. L’Oréal has introduced products for the virtual makeup of avatars, and even Hyundai has entered this space, soon allowing users to purchase virtual Hyundai cars. They are developing their metaverse platform, aiming to dominate the automotive and transportation sectors within this new space. Such developments make the metaverse and Web 3.0 quite intriguing.” When asked why someone would pay such high prices for a digital product, Emin responds, “For the same reason people buy the physical version: to show off! This motivation works in the virtual space too, and it’s a sales technique.”
“We hope that in the coming years, billions of people will use the metaverse, creating numerous jobs within it. We also anticipate significant digital trade exchanges occurring in the metaverse,” says Mark Zuckerberg, the founder of Facebook.
The metaverse trend began around 2017-2018, with projects like Sandbox and Decentraland entering the scene earlier than others. Emin comments on leading projects: “Before I explain, it’s essential to note that there are significant players in the gaming industry, like Fortnite and Roblox, that are not part of Web 3.0 and thus lack blockchain-based economies, yet they have millions of users. In contrast, decentralized gaming metaverse platforms like Sandbox and Decentraland have good partners, infrastructure, and communities but very few active users at any given time. Exciting projects in Asia, like Zepeto and Spatial, are developing rapidly, boasting millions of followers and apps for both computers and mobile devices, progressing swiftly in Web 3.0, and we are closely monitoring them. At Metafluence, we also aim to increase our number of active users because we believe that this is a project’s winning card.”
He further explains the limited number of active users in Sandbox and Decentraland: “We closely monitor this because our expansion plans for Metafluence are based on these findings. In my opinion, there are two main reasons. First, users generally prefer more realistic experiences, not pixelated and cartoonish environments. Consequently, users may become bored after a while. The second reason is the mandatory wallet connection during registration and entry into the game. When users are required to do this from the outset, they may be deterred from the project. I see this as a significant barrier for new users. Some projects, like Metafluence and Zepeto, have removed this obstacle, allowing users to experience the game and metaverse first and only connect their wallets if they enjoy it and decide to earn money. Moreover, at Metafluence, we have utilized the Unreal Engine, which provides a realistic 3D experience for users, despite being more time-consuming and costly to develop. This realism applies not only to the city environment but also to the avatars, ensuring that the characters closely resemble reality.”
“It will be much more appealing for you as a player if your real-world friends are there. It’s no longer like the old days when you played with random strangers on the internet; it’s about experiencing the real world with your real friends, and interaction is the way to achieve that,” says Tim Sweeney, the founder of Epic Games and developer of Fortnite.
Emin provides an overview of the Metafluence metaverse city: “Metafluence is a virtual metaverse city where individuals and brands can establish their businesses in spaces called ‘MetaHuts.’ With these spaces, people can host personal events, set up virtual stores, hold NFT exhibitions, and earn income in the internal economy of Metafluence by inviting others to their spaces. Our focus is on influencer activities. However, anyone can be an influencer in Metafluence; they just need to align with the project’s operational frameworks and encourage others to participate. Metafluence comprises 23,700 plots and MetaHuts in various areas, each dedicated to specific business activities. For example, one section is dedicated to art, while another focuses on fashion and apparel. There are also public spaces like streets, parks, beaches, and other attractions.”
Regarding the MetaHuts, which are a product available in Metafluence, Emin explains, “MetaHuts are ready-to-use buildings in Metafluence, consisting of three floors where individuals can host various events like gatherings and exhibitions or showcase their digital assets for sale. Currently, over 400 MetaHuts have been purchased by influencers who are conducting their events there. We will soon introduce a new revenue model that allows influencers to earn money through their events.”
Many, especially Gen Z teenagers, are eager to become influencers. Emin describes the path to becoming an influencer in Metafluence: “Starting as an influencer in Metafluence is as easy as opening an Instagram account, and you can immediately begin hosting events and earning income. However, there are some minimum acceptance criteria. A person with millions of followers might not be approved, while someone with just a few thousand followers could be. In addition to considering the community health of Metafluence, our goal is to attract influencers who are interested in promoting this new era of the internet with Web 3.0. We seek creative and knowledgeable individuals who can bring their follower communities to Metafluence. We welcome anyone with talent who wishes to become an influencer in the new generation of the web.”
“Just as the internet is useful for obtaining valuable information, the metaverse will also be beneficial for social relationships. There will be no limitations on interactions between people and characters. However, the crucial point is that humanity will suddenly experience a lot of freedom, which can be incredibly disruptive,” warns Craig Donato, Chief Business Officer of the online gaming platform Roblox.
Despite the decentralized nature of most metaverse projects, each city adheres to a set of internal rules, and Metafluence is no exception. Emin states, “Every project has its internal regulations, and Metafluence is no different; we will not allow our users’ security to be compromised. Since the users themselves are the primary decision-makers, certain individuals may be excluded or specific decisions may be made. In Metafluence, there is a system that assigns scores to individuals based on their behavior and actions as soon as they enter, known as reputation scores. This way, when someone sees another user, it becomes clear whether that person has appropriate behavior or not. These internal rules of Metafluence are distinct from the regulations governing the blockchain environment.”
Many people involved in metaverse projects and games are looking to earn income. Metafluence has specific programs for these individuals. Emin explains, “We have unique income and investment models that include buying and selling land or MetaHuts, and individuals can also earn by referring their friends. Additionally, a staking system for tokens has been implemented. Users also receive rewards for participating in various events, which are paid out using the native Metafluence token, METO. We will have several income models, but the core revenue model is ‘Influence to Earn,’ which will be generated through hosting events and engaging in activities like ticket sales and digital asset transactions. We also have a highly lucrative referral income model, where individuals can earn thousands of dollars by referring their friends. Since some of these models are being introduced, we don’t have older examples to refer to, so we sometimes have to proceed through trial and error. We are currently in the beta testing phase of the project, and many of the project’s supporters are helping us through the testing process. By collaborating with project enthusiasts and forming a testing group, we aim to address issues and welcome any suggestions and criticisms from our followers.”
Each metaverse project has its native token. The CEO of Metafluence defined their native token: “The native token of Metafluence is called METO. This token is used in transactions within the project and for reward payments.”
“I hope that the economic system and activities of metaverse technology will ultimately be much broader than today’s limited systems. We will eventually reach a point where the profits earned by metaverse creators will be far greater than those generated by current platforms,” concludes Tim Sweeney.
Carrying out computer and game development projects requires a strong and skilled team. Emin discussed the Metafluence team: “We are a multinational team. Some of the developers and founders of the project are from Azerbaijan, while others are located in Turkey, India, and the United Arab Emirates, and we are rapidly expanding the team.” He also explained the regulations governing the team: “Just as there were no specific rules for social media at first, there are currently no clear regulations regarding the metaverse. In most parts of the world, including the regions where we operate, the legal landscape is somewhat ambiguous. We are in the process of obtaining special permissions for metaverse activities in the UAE. However, in most areas, like Turkey, there is no such permit, and we operate as a computer programming and game development company.”
Regarding how laws and regulations impact blockchain technologies and the metaverse, and what he requests from high-ranking officials to facilitate conditions, Emin elaborated: “Instead of using the term ‘laws’ for the metaverse, it might be better to talk about laws for Web 3. Such laws do not yet exist even in developed, top-tier countries. This creates a great opportunity for smaller and developing countries. It is crucial for officials to understand how the metaverse and Web 3 operate and to support entrepreneurs by establishing appropriate regulations. This support could include some form of assurance and backing for the digital assets of their projects. I’m not a judge to provide legal opinions, but I can summarize my request in one word: ‘certainty.’ If entrepreneurs like me have confidence in a country’s ecosystem, significant investments will follow. This field is advancing at a rapid pace. For instance, an entrepreneur might invest only $10,000 to start a project that could become a unicorn within two or three years, offering unique services in the Web 3 space. This way, attracting investment becomes easier. Many brands have already begun this transition, and there is immense potential in this sector, allowing countries and governments to generate substantial revenues. Returning to the previous example, consider the impact on a country if a $10,000 business becomes a unicorn. This is neither oil nor mineral reserves, nor renewable materials. So, if officials in these countries support such projects instead of hindering their development, and creating the necessary infrastructure, they could enjoy the fruits of this tree within five to ten years. Another critical issue is the recognition of digital assets by governments. For example, if an NFT has a value of $10,000, the owner should be able to use it as collateral for a bank loan.”
“Augmented reality (AR) seems to be the simplest way to transition us to the metaverse so far. However, we are still witnessing more efforts to enter this realm. Currently, most metaverse experiences are conducted via mobile phones; however, we will have experiences that go far beyond just phones—where our entire bodies are fully engaged, and this is where the allure of the metaverse begins,” explains Tiffany Rolfe, Chief Creative and Branding Officer at R/GA.
