The Geo Web uses a novel property rights regime referred to as partial common ownership to fairly and efficiently administer its digital land market. Partial common ownership is a market-based solution with an important twist:
Land holders must publicly declare a "For Sale Price" for each of their land parcels
Land holders pay a license fee to the network based on a percentage of their "For Sale Price"
Any market participant can force transfer of a parcel by paying the current land holder their "For Sale Price" (and the outstanding prepaid network fee balance)
Here's an example of how it works in practice:
These rules are implemented and enforced on the Geo Web via the Digital Land Registry smart contracts. It's an elegant system that enables a unified global digital land market with minimal centralization and overhead.
The system offers numerous benefits for the network's health versus a system of pure private property rights:
The system encourages allocative efficiency. Essentially, it's easier for land to make its way into the hands of those that will put it into higher productive use because they are willing to pay more.
This dynamic increases the aggregate utility of the network and helps drive a virtuous network effects cycle.
The requirement for a public "For Sale Price" eliminates long, inefficient negotiations and monopoly holdouts.
This is a pervasive issue in the World Wide Web's domain name market. This dynamic would severely hamper AR metaverse adoption due to the low substitutability of two land parcels.
An individual holding a parcel of land means all other participants (i.e. "the network") are excluded from doing the same. This system assesses direct cost to the land holder to compensate the network for their exclusion—making for a more fair system.
Network fees are used to fund protocol and ecosystem development which, in turn, drives value and users.
While the novelty of the Geo Web's property rights system will require effective messaging and additional user education, it is the optimal system for taking an AR metaverse from boostrap to scale.
This system is also known as Harberger Taxes and is named after Arnold Harberger, the economist who initially outlined the basic scheme. Most recently it's gained attention through the book Radical Markets __by Eric A. Posner and Glen E. Weyl. Vitalik Buterin has helped popularize the idea in blockchain/crypto circles as well.