> For the complete documentation index, see [llms.txt](https://vvguild.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vvguild.gitbook.io/whitepaper/background.md). # Background ## Rise of the Metaverse Economy The metaverse is becoming as real as the material world and refers to virtual worlds that are designed for humans to interact with as easily as they do in the real world. This goes beyond playing games or chatting with avatars. This also means buying assets, getting married, travelling, and everything in between, including fashion and related industries. Virtual spaces now have their own economies and identity systems. ![Source: https://www.bbc.com/news/technology-59083601 ](/files/ORpIdjjvXHcX1qP3UeUS) The Metaverse has also transformed the economy in two ways – first, by providing an alternative investment instrument by way of blockchain, and second, by opening up new asset classes. All of this translates into **a bullish environment with moderate to high risk appetite.** These caused an EXPONENTIAL GROWTH in terms of market cap as well as mainstream adoption. ![Source: https://www.statista.com/statistics/1280565/global-market-cap-metaverse-facebook-gaming/ ](/files/12friYZz0V6hsyuo6MgV) The current, most popular ideas of the Metaverse we have today could be described simply as a place that one can visit via smart glasses or VR headsets where you find yourself in a computer-generated world, some forest or a beach somewhere or your office. The endless possibilities have attracted the attention of Big Tech and Venture Capital firms, reflecting the massive paradigm shift. ![Source: https://www.cnbc.com/2021/12/31/shanghai-releases-five-year-plans-for-metaverse-development.html ](/files/m80S04emkfSVIMHpPbVp) ### The Metaverse looks set to be the next big thing in tech over the next 5 years and has the potential to define a new era for tech after the desktop and the internet. ## GAMEFI ![](/files/jTNMnSkhps2mgXQq02R4) GameFi’s Play to Earn economic model enables the building of a sound and sustainable ecosystem that can serve as the economic foundation of a metaverse. Though still in its early days, P2E gaming is growing rapidly, during the recent hype, the weekly users of blockchain games increased from a few thousand to more than 5 million. Today's most popular P2E games include [Axie Infinity](https://axieinfinity.com/), a creature trading and battling game like Pokémon; [The Sandbox](https://www.sandbox.game/en/), a world-building game that is central to the early Metaverse; and Sorare. At the same time, many up-and-coming P2E games are on the rise, one notable example includes [Age of Tanks](https://ageoftanks.io/). ![](/files/wDqYhxLdn8LjEHbKpjSN) #### GameFi’s gaming aspect enables it to attract and establish a strong community that can support the Metaverse’s long-term growth --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://vvguild.gitbook.io/whitepaper/background.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.