Yuga Labs, the company behind Bored Ape Yacht Club, developed The Otherside, an interoperable, gamified metaverse platform. The Otherside Metaverse combines virtual land ownership, NFT integration, and multiplayer gaming to create a distinct digital universe. Unlike typical gaming platforms, the Otherside uses blockchain technology to allow users to own assets, form communities, and shape their own experiences. The Otherside Metaverse ecosystem includes two types of Ethereum tokens, namely ERC-20 and ERC-721 (for NFTs).
This guide delves into the Otherside’s technology, its core NFTs called Otherdeeds, the role of ApeCoin ($APE), what distinguishes it, and its potential future. It’s for people who own NFTs, explore the metaverse, or are just interested in the next generation of digital interaction from a well-known Web3 company. To understand the future of digital land, avatar identity, and community-driven virtual settings, you need to know what the Otherside is.
What is The Otherside Metaverse?
The Otherside is what Yuga Labs sees as a long-lasting, connected digital realm where players really own their things. The platform aims to create what the company calls a “metaRPG,” blending role-playing elements with metaverse features. According to Yuga Labs, the metaverse focusses on “player-owned and narrated” experiences, allowing the community unparalleled power over its evolution.
Yuga Labs’ ambition extends far beyond creating a typical virtual environment. The Otherside is intended as an interconnected ecosystem in which various digital assets can coexist and interact. A ‘metaRPG’ combines traditional online role-playing with a system where players actually own their in-game assets. This concept includes the creation of a permanent universe that evolves even when individual users are not online. The platform uses blockchain technology to make sure that players really own the digital items they buy in the game.
Yuga Labs, which gained prominence through its Bored Ape Yacht Club NFT collection, serves as the primary developer.. Its acquisition of CryptoPunks and Meebits further solidified its position in the NFT space. Animoca Brands joined as a strategic partner to help build the metaverse infrastructure. Additionally, Improbable provides the technical infrastructure through its MSquared technology, enabling thousands of concurrent players to interact seamlessly.
How Does The Otherside Work? The Core Components
The Otherside ecosystem comprises three interwoven components that define the metaverse experience. Otherdeeds represent the ownership of virtual land parcels, ApeCoin ($APE) is the local currency, and interoperability enables other NFTs to function as playable avatars.
According to PlayToEarn, the platform utilises Improbable’s MSquared technology to serve over 40,000 concurrent gamers.
Otherdeeds
Otherdeeds are the fundamental NFTs of the Otherside ecosystem, representing ownership of virtual land parcels. Each of the 100,000 unique Otherdeed plots contains distinct characteristics that make them valuable and unique. These dynamic NFTs can evolve based on player actions and in-game activities.
Each Otherdeed features specific traits that determine its rarity and potential value:
- Environment Types: Defines the visual landscape of your plot, ranging from Biogenic Swamps to Chemical Goo or Rainbow Atmos
- Sediments: Adds another layer of uniqueness with various soil and material types
- Resources: Include Anima, Root, Shard, and Ore that appear in various tiers across different cardinal directions
- Artifacts: Rare items that approximately 10% of plots contain, expected to have gameplay utility
- Kodas: Mysterious creatures appearing on roughly 10,000 plots, significantly increasing land value
Example:
Consider two different Otherdeed plots:
Otherdeed #1234:
- Environment: Biogenic Swamp (Tier 3)
- Sediment: Volcanic Soil
- Resources: Eastern Ore (Tier 2), Northern Anima (Tier 1)
- Special: Contains a rare artifact
- Current floor price: ~1.5 ETH
Otherdeed #5678:
- Environment: Rainbow Atmos (Tier 5)
- Sediment: Cosmic Dream
- Resources: Western Root (Tier 3), Southern Shard (Tier 2)
- Special: Contains a Koda (#4523)
- Current floor price: ~20 ETH
The presence of a Koda dramatically increases the second plot’s value. The different resource tiers and environment rarities also affect long-term utility and gameplay potential.
The $APE Coin
ApeCoin (APE) serves as the primary currency powering the entire Otherside ecosystem. This ERC-20 token enables multiple functions that keep the metaverse economy running smoothly.
Key utilities of ApeCoin include:
- In-World Transactions: Facilitates purchases of virtual goods, land upgrades, and premium features
- Governance Rights: Token holders can vote on proposals through the ApeCoin DAO
- Staking Rewards: Otherdeed holders can stake $APE to earn passive income through various pools
- Marketplace Currency: Used for buying and selling assets on secondary markets
Interoperability & The "Kodas"
One of the Otherside’s most creative characteristics is its compatibility with a variety of NFT collections. Holders of Bored Ape Yacht Club, Mutant Ape Yacht Club, CryptoPunks, and Meebits can utilise their NFTs to create 3D avatars. This capability considerably increases the usefulness of these digital treasures beyond static profile photographs.
Kodas are enigmatic beings native to the Otherside who carry out mysterious yet seemingly vital tasks. These creatures appear on about 10,000 of the 100,000 Otherdeed plots, making them relatively uncommon. Early gameplay demonstrations suggest that Kodas could serve as guides or companions.
What Makes The Otherside Different?
The Otherside distinguishes itself by building on known NFT intellectual property and technical capabilities that can accommodate thousands of concurrent players. However, high entry prices and execution risks pose considerable hurdles for potential participants, which they should carefully examine.
Advantages Over Other Metaverse Projects
|
Criteria |
The Otherside (Yuga Labs) |
Decentraland (Foundation) |
The Sandbox (Animoca Brands) |
|---|---|---|---|
|
Founding Team |
Creators of BAYC, CryptoPunks |
Decentraland Foundation |
Animoca Brands, Pixowl |
|
Core Asset (Land) |
200,000 Otherdeeds |
90,601 LAND parcels |
166,464 LAND parcels |
|
Interoperability Focus |
High – Multiple NFT collections as avatars |
Medium – Primarily MANA-based |
Medium – Growing partnerships |
|
Current Stage |
Early access, Koda Nexus live |
Fully operational |
Fully operational |
|
Technical Capacity |
10,000+ concurrent players |
Lower capacity |
Lower capacity |
|
Native Currency |
ApeCoin (APE) |
The Otherside benefits from Yuga Labs’ extensive intellectual property portfolio. Owning BAYC, CryptoPunks, and other well-known NFT collections ensures rapid brand recognition and community confidence. This existing user base provides a ready-made audience willing to participate in the metaverse.
Challenges, Risks, and Common Criticisms
The Otherside faces several significant challenges that potential participants should carefully consider:
- High Barrier to Entry: Otherdeed floor prices often remain prohibitively expensive for average users
- Limited Accessibility: Additional NFT requirements for certain features restrict broader participation
- Execution Risk: After $450 million in funding, some deliverables still feel unpolished according to critics
- Technical Issues: Early gameplay experiences like Project Dragon faced significant bugs and performance problems
- Market Volatility: NFT floor prices have dropped dramatically, with BAYC declining over 90% from peak values
- Regulatory Uncertainty: Unclear regulations surrounding NFTs and virtual assets add long-term risk
Getting Started & Real-World Use Cases
Participating in the Otherside necessitates obtaining appropriate NFT holdings and setting up your wallet infrastructure. The platform supports a variety of potential use cases, including virtual galleries, interactive gaming experiences, and community governance capabilities that go beyond simple social engagement.
Step-by-Step Guide On How to Participate in The Otherside
|
Step |
Action |
Note |
|
1. Acquire an Otherdeed or compatible NFT |
Purchase on marketplaces like OpenSea |
Ensure your wallet (e.g., MetaMask) is funded and connected. Otherdeed floor prices vary; check current rates before buying. |
|
2. Secure $APE tokens |
Buy on centralised exchanges (Coinbase, Binance) or DEXs (Uniswap) |
Needed for future transactions, staking, and potential in-world purchases. Store safely in your connected wallet. |
|
3. Create your Yuga ID |
Visit launch.otherside.xyz and connect your wallet |
Required for accessing events and features. Consider using wallet delegation services like Warm.xyz for security. |
|
4. Prepare for experiences |
Follow @Othersidemeta and Yuga Labs’ official channels |
Events like “Trips” are announced with limited notice. Join the Discord community for updates. |
|
5. Optional: Stake $APE |
Visit ApeStake.io to stake tokens |
Earn passive rewards by staking $APE alone or paired with eligible NFTs. |
Potential Future Use Cases
The Otherside offers various potential applications as the platform continues to evolve:
- Virtual Art Galleries: NFT artists and collectors can create immersive exhibition spaces for digital art showcases
- Custom Gaming Experiences: The Otherside Development Kit (ODK) enables developers to build unique games within the metaverse
- Social Events and Concerts: Large-scale gatherings leveraging the platform’s 10,000+ concurrent player capacity
- Community Governance: ApeCoin DAO participation allows stakeholders to vote on platform development decisions
- Virtual Real Estate Development: Land holders can build experiences, rent space, or sell developed properties
- Educational Workshops: Interactive learning environments for crypto, blockchain, and digital asset education
The Otherside and Crypto Taxes: What You Need to Know
Participating in the Otherside metaverse has several tax consequences that users must understand and track correctly.
Taxable Events in The Metaverse
Engaging in the buying or selling of Otherdeed NFTs results in capital gains or losses that must be considered for tax implications. The difference between your purchase price and sale price establishes your taxable gain or deductible loss.
Earning or spending $APE in the ecosystem generates additional tax events. Receiving $APE through staking rewards is considered regular income and is calculated using the token’s fair market value at the time of receipt. Using $APE to purchase in-game assets or services results in a taxable disposal event.
How to Stay Compliant
Maintaining proper tax compliance for your Otherside activities requires careful attention to detail:
- Track Every Transaction: Record dates, amounts, and fair market values for all purchases, sales, trades, and receipts
- Document Gas Fees: Ethereum network fees can be added to your cost basis, reducing taxable gains
- Save Transaction Records: Keep screenshots and blockchain confirmations of all activities
- Monitor In-World Trades: Resource exchanges between players may constitute taxable barter transactions
- Report Staking Rewards: Count all $APE earned as ordinary income when received
- Calculate Cost Basis Accurately: Include purchase price, gas fees, and other acquisition costs
Manually computing the cost basis for NFT mints, trades and petrol fees is difficult and time-consuming. Platforms such as KoinX automate this procedure by synchronising your wallet and exchanging data to make accurate tax returns. The software monitors all transactions, calculates gains and losses, and generates IRS-compliant forms, saving hours of work.
Conclusion
The Otherside embodies Yuga Labs’ bold vision to create a premier interoperable metaverse, powered by the robust intellectual property of BAYC and CryptoPunks. However, considerable obstacles persist, such as increased entry costs, execution ambiguity, and market fluctuations. The success of the project hinges on Yuga Labs’ capacity to create captivating experiences while ensuring ongoing community involvement.
If you’re trading NFTs, earning $APE tokens, or participating in the Otherside metaverse, tracking your crypto transactions for tax purposes is essential. Every NFT sale, token swap, and staking reward creates tax obligations that must be properly reported. KoinX automates this entire process by syncing your wallets and exchanges to generate accurate, IRS-compliant tax reports. Sign up today and save hours of manual work and ensure compliance with KoinX’s comprehensive crypto tax solution.
Frequently Asked Questions
Do I Need to Own a Bored Ape to Enter The Otherside?
No, you don’t. While owning a BAYC or Mutant Ape provides a special playable character, primary access is gained by holding an Otherdeed land NFT. The platform is designed for interoperability, meaning various NFT collections will be usable. The Koda Nexus social hub is now accessible without specific NFT requirements, though owning compatible assets unlocks additional features.
Is an Otherdeed NFT a Good Investment?
Like any digital asset, it carries significant risk. Its value is tied to the successful development and adoption of the Otherside platform, the overall crypto market, and the utility derived from the land’s traits. It should be considered a highly speculative asset, not a guaranteed investment. Floor prices have experienced substantial volatility since the initial mint.
Can I Make Money in The Otherside Metaverse?
Potentially, through several avenues like selling appreciated Otherdeed land, renting out land, creating and selling experiences or games on your plot, or earning tokens through gameplay and participation. However, these models are still evolving and not guaranteed. The market for virtual land and in-game assets remains highly volatile and speculative.
Do I Have to Pay Taxes on My Otherside Activity?
In most countries, you trigger a taxable event when you use cryptocurrency ($APE) to buy goods or services. The same applies when you make a profit by selling assets you own inside the world. Because tax authorities now closely monitor activity involving NFTs and crypto, you should keep detailed records of every transaction. You may owe taxes whenever you buy, sell, trade, or earn rewards.
What Happens to My Otherdeed if the Project Fails?
If the Otherside project fails to launch or continue operations, your Otherdeed will remain an NFT on the Ethereum blockchain. You maintain ownership of the digital asset and can continue to trade it on secondary marketplaces. However, its value is likely to fall dramatically in the absence of aggressive platform development. The NFT itself cannot be erased or removed, but its utility and market value are entirely dependent on the project’s ongoing success.