STAFF REPORT
Meeting Date: September 12, 2022
To: Honorable Mayor & City Council
From: Laurence Wiener, City Attorney
Laura Biery, Marketing and Economic Sustainability Manager Subject: Request by Mayor Lili Bosse to Discuss the City of Beverly Hills Entering the Metaverse
Attachments: 1. Travis Cloyd Biography
2. April 2022 National League of Cities Guide – “Cities and the Metaverse”
INTRODUCTION
This item is at the request of Mayor Lili Bosse for the City Council to hear a presentation regarding the City of Beverly Hills entering the metaverse.
DISCUSSION
For the purposes of today’s discussion, the City Council will hear a presentation by Travis Cloyd of Worldwide XR regarding the metaverse and opportunities for the City of Beverly Hills. Worldwide XR is a sister company of CMG Worldwide. CMG Worldwide has been the contracted licensing agency for the City of Beverly Hills since 2013 for all trademark licensing opportunities for the City of Beverly Hills City Shield.
Travis Cloyd is the Global Futurist at Thunderbird School of Global Business Management and the Senior Advisor to the Dean and Professor of Practice on Global Creative Industries at Arizona State University. Cloyd is also CEO of Worldwide XR and an award winning producer, XR visionary and Metaverse educator that operates a portfolio of cutting-edge businesses with a focus on trending innovation. He has been a recommended resource for over the last 15 years as an acknowledged industry expert by top media outlets including Forbes, Billboard, Rolling Stone, Fortune, TechCrunch, VentureBeat, Wareable, Variety, Deadline, Hollywood Reporter, and CNBC. Attachment 1 to this report includes a full biography for Travis Cloyd.
According to the National League of Cities, “[the metaverse] doesn’t have an agreedupon definition and can be an elusive concept. Generally speaking, the metaverse is the next evolution of the internet that will further integrate physical and digital experiences.
For some, it’s an online space that digitally recreates the real world. For others, it is a shift in how people interact with their world, using technologies like 3D computing, augmented reality, virtual reality and blockchain to form new immersive virtual world experiences where digital information can be overlaid on our physical world.” See BEVERL
HILLS
id
Meeting Date: September 12, 2022
Attachment 2 for the National League of Cities Guide – “Cities and the Metaverse” for examples of international and domestic cities that have entered the metaverse.
The City of Beverly Hills City Attorney’s office, in collaboration with the Policy and Management Department, oversees the protection of the trademarked Beverly Hills City Shield.
In June 2022, the City Attorney’s office filed Class 41 Trademark applications regarding the City Shield use including the current City Shield design as well as past design iterations of the City Shield. A Class 41 Trademark is as follows:
Class 41: Entertainment services, namely, providing metaverse experiences; Entertainment services, namely, providing on-line actual and virtual concerts and other virtual events; Entertainment services, namely, providing online, nondownloadable virtual footwear, clothing, headwear, eyewear, bags, backpacks, art, and accessories for use in virtual environments created for entertainment purposes; Entertainment services, namely, providing virtual environments in which users can interact for recreational, leisure or entertainment purposes; providing a website featuring on-line non-downloadable software that enables users to join, access and use a virtual environment or metaverse.
These trademark applications protect the use of the City Shield in the metaverse. It is anticipated it will be at least 6 months before the applications are reviewed by an examining attorney. During such time, the City Council may decide to begin discussions regarding the City of Beverly Hills and the metaverse.
Furthermore, the Rodeo Drive Committee and the Beverly Hills Conference and Visitors Bureau have also begun discussions regarding the metaverse and the potential opportunities within. Both agencies, along with the Beverly Hills Chamber of Commerce, are supportive and willing to participate in future discussions regarding the metaverse.
FISCAL IMPACT
There is no fiscal impact to discuss the City of Beverly Hills entering the metaverse.
Existing trademark filing fees for the aforementioned Class 41 application are covered in the existing Tourism and Marketing budget (00101311). Should further investment be requested, the fiscal impact for any further investment may be brought back to the City Council at a future date for discussion.
RECOMMENDATION
It is recommended that the City Council receive the presentation regarding the City of Beverly Hills entering the metaverse and provide feedback regarding next steps.
Nancy Hunt-Coffey
Assistant City Manager
Approved By
Attachment 1
T r a v i s W . C l o y d
Global Futurist, Thunderbird School of Global Management Travis Cloyd is an award winning visionary and producer of experiential content. He is the Global Futurist at Thunderbird School of Global Business Management and the Senior Advisor to the Dean and Professor of Practice on Global Creative Industries. He recently lectured as a part of the Masters of Arts in Global Affairs and Management and spoke separately on Cryptocurrency.
He was formally the inaugural Futurist in Residence, Director of iSTAR (Immersive Studio for Altered Reality), and Adjunct Professor at Florida International University (FIU) in Miami, Florida. In 2021, Mr. Cloyd was honored with a Medallion for University Servicefor his outstanding contributions to FIU. He was previously a scholar-athlete and graduated from Arizona State University in 2004 with a bachelor's degree in Business and Sociology. He started his first company while at ASU.
Travis is a futurist, tech entrepreneur, producer, professor, and entertainment executive focusing on creating, managing, and financing immersive state-ofthe-art technology companies. He is an award-winning producer, XRvisionary, and Metaverse educatorwho operates a portfolio of cutting-edge businesses focusing on trending innovation. Most recently,recognized by Forbes on the 2021top ‘Next Entrepreneur’ list. He is the Arts, Music, and Entertainment Ambassador to the GBBC (GlobalBlockchain Business Council) anda member of the Producers Guild of America, a part of the new media council, education, and international committees.
He has since created next-level digital content for the US Space Force, NOAA, professional sports leagues, major international studios, iconic brands, legendary actors, global musicians, top athletes, and historical figures throughout his career. He has produced feature films, virtual reality experiences, augmented reality content, NFT’s and much more. He continues to break new ground within the entertainment industry creating and protecting virtualhuman IP content based on historical figures for all facets of the diverse XR, Metaverse, and NFT ecosystem.
He has been a recommended resource for over the last 15 years as an acknowledged industry expert whose point of view by top media outlets including Forbes, Billboard, Rolling Stone, Fortune, TechCrunch, VentureBeat, Wareable, Variety, Deadline, Hollywood Reporter, and CNBC.
He has moderated events for the VRARA, the 2021 NFT Power Player Panel at Digital Hollywood, the Futureof Entertainment panel for 2020 Comic-con, and more. Most recently, he's been featured in an episode of BBC's CLICK and filming a network series on the exploration, education, and business dealing within the NFT sector. His recent speaking engagements have been on XR, Digital Rights, Metaverse, Blockchain, Cryptocurrency, and NFT’s.
Arizona State University (ASU) has become the foundational model for the New American University, a new paradigm for the public research university that transforms higher
education. ASU is committed to excellence, access and
impact in all activities across all colleges.
ASU Charter: ASU is a comprehensive public research
university, measured not by whom it excludes, but rather by whom it includes and how they succeed; advancing
research and discovery of public value; and assuming
fundamental responsibility for the economic, social, cultural and overall health of the communities it serves.
Thunderbird, a unit of the Arizona State University enterprise, is a topranked school of international business with nearly 70 years of experience in developing leaders with the global mindset, business skills and social responsibility necessary to create real, sustainable value for their organizations, communities and the world. Dedicated to preparing students to be global leaders and committed global citizens, Thunderbird was the first graduate business school to adopt an official Professional Oath of Honor. Thunderbird’s global network of alumni numbers 40,000 graduates in 147 nations worldwide. The school is sought out by graduate students, working professionals and companies seeking to gain the skills necessary for success in today’s global economy.
Areas of Expertise
▪ Entrepreneurship
▪ Technology
▪ Metaverse
▪ Blockchain
▪ Cryptocurrency
▪ Production
▪ Augmented Reality
▪ Virtual Reality
▪ Mixed Reality
▪ NFT’s
▪ DAO’s
to th Ar. Mt lvrtfetri
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University
Attachment 2
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HISTORYBUFF1786 MAYOR
MEET WITH YOUR COMMUNITY LIAISON
SCHEDULE AN APPOINTMENT
PAY A BILL
TAKE A TOUR OF YOUR CITY
JOIN CITY COUNCIL MEETING
NATIONAL
LEAGUE
OF CITIES
Cities and the Metaverse
THE
FUTURE
OF CITIES
NL.C
CENTER FOR CITY SOLUTIONS
I I I I
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About the National League of Cities
The National League of Cities (NLC) is the
voice of America’s cities, towns and villages,
representing more than 200 million people. NLC
works to strengthen local leadership, influence
federal policy and drive innovative solutions.
NLC’s Center for City Solutions provides
research and analysis on key topics and trends
important to cities, creative solutions to improve
the quality of life in communities, inspiration
and ideas for local officials to use in tackling
tough issues, and opportunities for city leaders
to connect with peers, share experiences and
learn about innovative approaches in cities.
About the Authors
Lena Geraghty, Innovation and Sustainability
Director, Center for City Solutions
Tina Lee, Senior Research Specialist,
Center for City Solutions
Julia Glickman, Senior Coordinator,
Center for City Solutions
Brooks Rainwater, Senior Executive and
Director, Center for City Solutions
Acknowledgements
The authors would like to acknowledge Adam De
Cata, Head of Partnerships, Decentraland, and Otto
Boudet, Deputy Chief of Staff for Mayor Francis
Suarez, City of Miami, FL, for their valuable insights
The authors extend thanks to Clay Dillow for
copyediting and Evan Potler, Founding Partner,
Chief Creative Officer at Factor3 Digital for design.
2022 ©National League of Cities. All Rights Reserved.
All photo credited to Getty Images, 2022.
NATIONAL
LEAGUE
OF CITIES
CONTENTS 3 Introduction
5 Defining the metaverse
11 How are cities engaging with the metaverse
today?
15 How might cities engage with the metaverse
in the future?
20 Conclusion
21 Endnotes
NL.C
CENTER FOR CITY SOLUTIONS
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••••••••• ••••••••• ••••••••• I
3 NATIONAL LEAGUE OF CITIES Cities are the places where people come together, live, love, work and play.
Human connection is one of the most
critical components of day-to-day life. Much
of the world quickly learned how to connect
with one another and access services in virtual
environments in response to the COVID-19
pandemic. However, we lacked the ideal tools
for connecting in this way. Zoom meetings,
Google Chat and good old fashioned phone
calls provide a poor simulation of the physical
world. What if a true simulation of our physical
world could be recreated in a virtual manner?
What value would this bring to people’s lives,
what challenges would it present, and would it
ultimately prove to be a net positive for cities?
Technologists and science fiction writers have
explored various ideas around virtual reality —
and the metaverse — for decades, with various
iterations coming online in fits and starts.
Whether through video games, online spaces
like Second Life or stories like Ready Player
One, the future of cities and their residents
will include a virtual world where people
can immerse themselves in a simulacrum of
the everyday. Much of the recent discussion
pointing toward a more fully developed version
of this virtual space or metaverse has come
about alongside the development of Web 3
technologies — those that will fuel a muchhyped future internet that is decentralized, more anonymous and fueled by digital currencies.
Imagine a future where community members
can interact “face-to-face” with building
department personnel on the plans for their
new deck from the comfort of their own
homes, comment at a virtual public meeting
from their office chairs, or even connect with
their mayor without having to step into city
hall. The technology and vision to create
these kinds of virtual spaces and facilitate
meaningful interpersonal interactions within
them is finally here, and the impacts to
society are not yet entirely understood.
Leaders need to think about what these
technologies will mean for cities as they
plan for the years and decades ahead.
INTRODUCTION
LEADERS NEED TO THINK
ABOUT WHAT METAVERSE
TECHNOLOGIES WILL
MEAN FOR CITIES AS THEY
PLAN FOR THE YEARS AND
DECADES AHEAD.
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is no agreed upon definition of the
metaverse. In short, the metaverse is the
next evolution of the internet with a focus on the
integration of physical and digital experiences.
For some users, the metaverse is an online space
meant to digitally recreate the real world. For
others, it is a shift in how they interact with their
world, using technologies like 3D computing,
augmented reality (AR), virtual reality (VR) and
blockchain to form new immersive virtual world
experiences that have the potential to overlay
digital information on our physical world. The
metaverse can be a place to play and relax while
escaping the real world or it can be a space to
do the work of life virtually.
DEFINING THE METAVERSE
AUGMENTED REALITY:
Overlays visual, auditory or
other sensory information
onto the real world through
devices such as phones or
smart glasses to enhance
a person’s experience of
the physical world.
The web and how we use it continuously
evolves. Each shift brings additional flexibility
for users and increased capacity for
engagement with others. The metaverse relies
on movement toward Web 3, where users
have more control over their experiences and
increased ability to engage with other users
in new ways. Several layers of the metaverse
must be in place to make this future a
reality. Realizing this vision will require new
foundational technologies (infrastructure,
human interface, decentralization, spatial
computing) and an expanded role for
creators in developing new design tools,
business models, goods and services.1
VIRTUAL REALITY: Immerses
users in a complete simulated
experience using virtual reality
headsets like those created
by Oculus, Sony and Valve.
These computer-generated
environments can be explored
in 360 degrees and most
commonly involve stimulus
through sight and sound.
BLOCKCHAIN: Distributed
digital ledger that stores
data. Blockchain technology
forms the backbone of
cryptocurrencies but
is also used for smart
contracts, banking and
asset transfers (e.g., NFTs).
THE METAVERSE RELIES ON MOVEMENT
TOWARD WEB 3, WHERE USERS HAVE
MORE CONTROL OVER THEIR EXPERIENCES
AND INCREASED ABILITY TO ENGAGE WITH
OTHER USERS IN NEW WAYS.
Web 1.0 – Read-only web. Users read and
share information over webpages created
by a limited group of creators but cannot
interact with the content. This enables
one-way communication but there is
little user control over the experience.
Web 2.0 – Read-write web. Users can not
only read, write, modify and interact with
content, but they can also communicate
and collaborate with other users. This
enables two-way communication, but this
experience happens through established
platforms or websites, largely controlled
by big technology organizations.2
Web 3.0 or Web 3 – Future of the web. As
envisioned, users interact through blockchain
technologies that enable a decentralized
system of engagement in digital spaces.
Users have the power and ability to create
and control their creations (avatars, digital
assets), exchange value (cryptocurrencies,
non-fungible tokens) and self-govern
(decentralized autonomous organizations).
NATIONAL LEAGUE OF CITIES 6
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7 NATIONAL LEAGUE OF CITIES NATIONAL LEAGUE OF CITIES 8 Defining the metaverse
Although the metaverse is a newer term for
most, it has an extensive history in video
gaming. CyberTown, an online community
with 3D chat rooms and virtual life gameplay,
launched in 1995. It laid the foundation
for video games like Second Life (2003),
Roblox (2006) and Minecraft (2011), which
center on virtual worlds and community
building. These games and others start
with each user creating an avatar, a digital
representation of the user’s body and
persona, before enabling them to explore
the virtual world around them and connect
with others. Users access these video
games through gaming consoles, personal
computers and VR devices like headsets.
Other games seek to blend the physical
and virtual worlds. Games like Pokémon Go,
Ingress and Harry Potter: Wizards Unite use a
smartphone’s camera, gyroscope, clock and
GPS to superimpose the gaming environment
on the player’s actual world so that players
are operating in a state of mixed reality.
The metaverse is no longer just about video
gaming. Social experiences like musical
performances and sporting events are already
happening in the metaverse. In August 2020,
social media platform TikTok and musical
artist The Weeknd hosted a live, interactive
and immersive concert for more than 275,000
concurrent viewers.3 Online video game Fortnite
has already held several successful concerts
within its virtual environment. Rapper Travis
Scott performed for 12.3 million concurrent
and 27.7 million unique users. Singer Ariana
Grande’s concert allowed attendees to play
Fortnite minigames, like racing and target
practice, while enjoying the experience.4 Even
the Super Bowl, one of the most viewed events
on live television, joined the metaverse during
Super Bowl LVI when Miller Lite partnered
with Decentraland, a 3D virtual world browserbased platform, to host a virtual event.5
THE VIRTUALITY CONTINUUM
REALITY MIXED REALITY
What is...
VIRTUAL
What could be...
RE
AR
MR
AV
VR
AUGMENTED REALITY AUGMENTED VIRTUALITY
Design Tools, Asset
Markets, Workflow,
Commerce
CREATOR
ECONOMY
Edge Computing,AI
Agents, Microservices,
Blockchain
DECENTRALIZATION
Games. Social, Esports,
Theatre, Shopping
EXPERIENCE
1 3
5G, WiFi 6, 6G, Cloud, 7nm to
1.4nm, MEMS, GPUs, Materials
INFRASTRUCTURE
7 5
Mobile, Smartglasses,
Wearables, Haptic,
Gestures, Voice, Neural
HUMAN
INTERFACE
3D Engines,
VR/AR/XR,
Multitasking, UI,
Geospatial Mapping
SPATIAL
COMPUTING
Ad Networks, Social,
Curation, Ratings,
Stores, Agents
DISCOVERY
2 4
6 LAYERS OF THE
METAVERSE
Source: Anderson, M. J. (2015, June 22). Augmented or Virtual: How Do You LIke Your Reality? Trekk. https://www.trekk.com/insights/augmented-or-virtual-how-do-you-your-reality Source: Radoff, J. (2021, April 7). The Seven Layers of the Metaverse. Medium. www.medium.com/building-the-metaverse/the-metaverse-value-chain-afcf9e09e3a7 9 NATIONAL LEAGUE OF CITIES NATIONAL LEAGUE OF CITIES 10 Defining the metaverse
Many current metaverse platforms are built
on blockchain-enabled applications and
facilitate economies based on decentralized
finance (DeFi) and cryptocurrency. This
means users can purchase virtual property,
goods and services, or nonfungible tokens
(NFTs) in the metaverse and pay for
them with whatever cryptocurrency the
platform uses — Mana for Decentraland,
SAND for The Sandbox, ETH for OpenSea.
The use of cryptocurrencies gives more
power to users, reducing transaction
costs, ensuring security via the blockchain
and enabling them to personally benefit
by monetizing their virtual worlds.
As the concept of the metaverse
becomes more mainstream, technology
companies have announced changes to
their business models that reflect their
planning for the future of the metaverse.
FOR MORE INFORMATION ON THE BLOCKCHAIN,
CHECK OUT NLC’S BLOCKCHAIN IN CITIES REPORT.
WWW.NLC.ORG/RESOURCE/BLOCKCHAIN-IN-CITIES
1992 Metaverse coined in Snow Crash
by science fiction writer Neal Stephenson
CyberTown
Digital twins
Second Life
Roblox
Bitcoin and blockchain
First prototype of the Oculus Rift VR headset
Ready Player One by writer Ernest Cline | Minecraft
First known NFT
Ethereum | Smart contracts
Pokémon Go
Decentraland
Axie Infinity, NFT-based game
First concerts in the metaverse
Facebook rebrands to Meta Platforms Inc. (Meta)
Microsoft acquired video game maker Activision Blizzard | H&M store in the metaverse
1995
2002
2003
2006
2009
2010
2011
2012
2015
2016
2017
2018
2020
2021
2022
TIMELINE OF THE
METAVERSE
NONFUNGIBLE TOKEN (NFT):
Unique digital asset that represents
a real-world object (e.g., art, music,
photo, GIFs, collectibles, video
game items, etc.) and whose data
(e.g., proof of ownership, certificate
of authenticity, sale information,
etc.) is stored on the blockchain
where it can be traded or sold.
In 2021, Facebook rebranded itself as
Meta and shared plans to shift its focus
to new technologies that will help people
connect and explore the metaverse.6 In
January 2022, Microsoft announced plans
to acquire video game maker Activision
Blizzard in what many see as an attempt to
expand into the metaverse.7 However, the
metaverse is still being envisioned and built
by a wide array of tech providers, developers,
creators, entrepreneurs and end users.8
11 NATIONAL LEAGUE OF CITIES NATIONAL LEAGUE OF CITIES 12 As the metaverse becomes more fully
defined, its utility in local governments
will also become clearer. However,
cities are beginning to explore how it can
benefit governmental operations and support
community needs. The journey to the metaverse
will be iterative. As new technologies advance,
we can explore the idealized version of the
metaverse – a self-sustaining and persistent
virtual world that exists independently, alongside
and intertwined with the physical world.9
While the private sector has made the
greatest strides towards building the
metaverse, governments are engaging with
the emerging technologies at its core and
in some cases are investing in its future
use. Augmented and mixed reality, the
internet of things (IoT), digital twins, and
blockchain are all foundational technologies
vital to the metaverse, and cities are
already deploying them for uses ranging
from tourism to resource management.
Several cities have utilized augmented reality
(AR) to support tourism and their local
economies.10 The Buffalo Olmsted Parks
Conservancy in Buffalo, NY, developed a
mobile app that allows visitors to scan signs
in the parks and see a historical view of the
park overlayed on the spot they are standing.11
This feature allows visitors to engage with the
park in new ways, and was supported by the
HOW ARE CITIES ENGAGING
WITH THE METAVERSE TODAY?
state’s Division of Tourism through the Regional
Economic Development Council Initiative
with the explicit purpose of drawing tourists
to these parks to boost the local economy.
Other cities have built similar experiences in
downtowns, retail districts or historical sites.
The novelty of this technology is an attraction
for tourists on top of the sites themselves,
connecting visitors more fully with the place.
Internet of things (IoT) solutions are used
by many cities to provide useful, real-time
data about physical space and how people
are moving through the city. This technology
has numerous potential applications, but is
often used for monitoring traffic patterns,
utility usage and environmental factors,
such as air quality, noise and temperature.
Pittsburgh, PA, has deployed adaptive traffic
signals which change the lights based on
actual traffic to reduce commute times and
fuel consumption. The smart traffic system
has reduced travel delays in Pittsburgh by
about 20 percent.12 The pilot study also found
these devices could reduce total emissions by
39,000 tons annually if deployed citywide.13
INTERNET OF THINGS (IOT): Networks
of devices that communicate with each
other to monitor and analyze activity,
resource use and other real-time data.
IoT devices gather data that cities can use
to gain insight into government operations
and service provision. These technological
advancements have already shown their value
for cities in making city operations and resource
usage more efficient. The data collected
through IoT allows cities to understand
trends and behaviors, but is also foundational
to technologies that blend the digital and
physical worlds, including AR, mixed reality
and the metaverse. A virtual environment may
integrate IoT collected data to reflect the realworld conditions that a user is experiencing.
Cities are also creating digital twins to model
how changes to the city’s physical environment
will impact things like traffic congestion,
environmental emissions and sea level rise.
In Massachusetts, the Boston Planning and
Development Agency (BPDA) has created
a digital twin that maps the city’s physical
landscape, from water and sewer systems to
tree canopies.15 In the case of one controversial
development proposal, the digital twin was
used to assess shadows that a proposed
new building would cast on a popular park,
leading BPDA to modify the building plans
and minimize the impact on the park.16
Digital twins are a powerful tool for urban
planning, as they allow cities to anticipate
specific impacts of new buildings, street
changes or other land use decisions. By
enabling data-driven planning, digital twins
can also save cities money by predicting
costly future effects of decisions made
DIGITAL TWIN: A digital twin is a
virtual model designed to accurately
reflect an object or system. More
specifically, a digital twin would
be a digitized copy of a city, built
as a virtual scale 3D model.14
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13 NATIONAL LEAGUE OF CITIES NATIONAL LEAGUE OF CITIES 14 How are cities engaging with the metaverse today?
today. ABI Research, a tech intelligence
firm, predicts that U.S. cities will achieve
$280 billion in cost savings by using digital
twins to increase efficiency in energy,
transportation and infrastructure.17
Cities are also using the blockchain to facilitate
smooth and transparent exchanges of
information. Many smart cities initiatives rely
on the blockchain to share data from sensors,
record financial transactions and execute
smart contracts because it creates a single
source of information that all stakeholders
can access and trust. In 2018, Austin, TX,
piloted a program to give people experiencing
homelessness a digital identity stored on
blockchain. This digital system securely stores
key identifying documents, such as a social
security card or medical records, that are
necessary to access services or medical care.
Systems like this help ensure that logistical
burdens like a lost personal document do
not keep public services from those who
need them.18 The University of Texas, Austin,
a partner in this program, is building on the
results of the pilot to develop an improved
digital tool the city can use in the future.19
The metaverse is being built on a blockchain
foundation. Much of the envisioned
functionality — exchange of value through
cryptocurrency, acquisition and trading of
collectibles and NFTs — and the priorities of
the metaverse — decentralization, security,
interoperability, privacy — align with the
capabilities of the blockchain. Embracing
the metaverse will require that cities better
understand how information is, and should
be, collected and shared with others.
Even as the metaverse emerges in its earliest
stages, several cities have announced plans
to have a presence there. Cities around the
world have looked to technology to better
their cities and connect with residents in new
ways. By investing in the metaverse, these
cities are on the frontlines of exploring how
the metaverse will impact and benefit cities.
NATIONAL LEAGUE OF CITIES 14
Shanghai, China
Shanghai issued a five-year development plan that named the metaverse one of four frontiers for exploration. In 2021, the Shanghai Municipal Commission of Economy and Information Technology released a plan encouraging exploration of the metaverse across industries, both in the private sector and for public services. The commission plans to increase research and development of underlying technologies that will build the metaverse, including smart sensors and blockchain.20 Santa Monica, CA
Santa Monica was the first U.S. city to enter the metaverse. The city now offers a virtual way to experience its downtown district through FlickPlay, a Santa Monica-based metaverse social app company.21 In its partnership with Santa Monica, FlickPlay provides users an interactive map of the city’s retail district where they can collect tokens as they move around the city. Some tokens can be used to unlock digital experiences in the app and others can be redeemed for physical items at retailers in the area.22 Santa Monica’s participation in the metaverse allows users to explore this exciting new technology, but also benefits the local economy. Through the app, users are drawn to visit real world local businesses, and the app aims to increase foot traffic in underutilized spaces.
Seoul, South Korea
In 2021, the Seoul Metropolitan Government announced its plan to become the first city to fully enter the metaverse.23 As part of the five-year metaverse Seoul promotion master plan, Seoul will invest $3.3 million to develop a communications platform that will enable the city to provide services to its residents in the metaverse.24 The city’s metaverse ecosystem will accommodate all areas of Seoul’s municipal administration, from traffic enforcement to tourism. In Seoul’s “Metaverse 120 Center” residents will meet with avatar public officials in a virtual office for public services previously only available in person at City Hall. This entirely new use of the metaverse would enable governments to provide key services and engage with residents in a lifelike way while overcoming space limitations, distance between residents and city hall, language barriers and other obstacles to in-person interactions.
Along with transitioning government services to the metaverse, Seoul is introducing a virtual tourist zone which will host some of Seoul’s largest tourist attractions virtually. Seoul’s most popular festivals will be held in the metaverse, starting with a traditional Bosingak bell-ringing ceremony on New Year’s Eve. Moving cultural events into the metaverse will allow people from around the world to connect with the city and establish Seoul as a global hub for emerging technology by displaying one of the city’s most impressive technological accomplishments.
CITY SPOTLIGHT
EMBRACING THE METAVERSE WILL REQUIRE
THAT CITIES BETTER UNDERSTAND HOW
INFORMATION IS, AND SHOULD BE,
COLLECTED AND SHARED WITH OTHERS.
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15 NATIONAL LEAGUE OF CITIES NATIONAL LEAGUE OF CITIES 16
HOW MIGHT CITIES ENGAGE
WITH THE METAVERSE
IN THE FUTURE?
What can the metaverse be in the
future? Read major news outlets
or talk to people working on
building the metaverse and you will get the
same answer: “Anything. The possibilities are
endless.” The same holds true for what the
metaverse can mean for city governments.
Cities like Santa Monica, Seoul and Shanghai
provide early indications of where city use of
the metaverse is heading. Although it will be a
while before Seoul, or any other city, manages
to develop a fully functional virtual world, other
cities are likely to move into the metaverse
via digital city halls and other city operations
in the near term. Further down the line, more
advanced conceptions of the metaverse may be
commonplace in our daily lives.
The possibilities in the metaverse are endless.
The metaverse can help bring public services
online. Instead of having to go to city hall
to file printed paperwork, residents can
simply enter the metaverse and submit
digital paperwork there. The metaverse
can help city staff model scenarios with a
digital twin, allowing cities to prototype
changes and determine their impacts before
implementing them in the physical world.
Cities can make use of the metaverse in a
variety of ways, ranging from the simple to
fairly advanced applications of the technology.
The following scenarios represent just a few
of the possibilities the metaverse enables.
Simple Scenario: Ahmed is starting a computer
repair business. He has read up on the local
requirements and filled out all the necessary
paperwork. He makes an appointment to get
his business license application reviewed and
approved by his city’s Permitting and Licensing
Department. On the day of his appointment, he
enters the metaverse through his smartphone,
where his avatar appears in a waiting room.
He can see his completed application in the
metaverse and spends a few minutes reading
over his application materials once more. He
sends a quick chat message to let Jess, an
Administrative Specialist in the city’s licensing
department, know that he is here for his 2:00
pm appointment. At 2:00 pm, Jess’s avatar
appears in the waiting room. A button pops up
on the screen prompting him to join Jess and
her avatar in her office. Once in the office, Jess
verifies that nothing is missing from Ahmed’s
application and answers a few questions about
next steps with the building inspector who
is coming to confirm Ahmed’s office space is
ready for customers. Ahmed and Jess wave
goodbye before he signs out of the metaverse.
CITIES CAN MAKE USE OF THE METAVERSE
IN A VARIETY OF WAYS, RANGING FROM
THE SIMPLE TO FAIRLY ADVANCED
APPLICATIONS OF THE TECHNOLOGY.
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17 NATIONAL LEAGUE OF CITIES NATIONAL LEAGUE OF CITIES 18 How might cities engage with the metaverse in the future? Advanced Scenario: Jackie, a planner in
the city’s Planning and Urban Development
Department, has been tasked by their boss
to identify the potential impact of sea-level
rise on the city’s beachfront properties and
businesses. Using the city’s digital twin,
Jackie creates a 3D model of the city to
explore different climate scenarios through
a virtual reality headset based on the latest
Intergovernmental Panel on Climate Change
sea-level rise projections. Jackie invites their
colleague Yui, an engineer in the Public Works
Department, to join them in the metaverse.
Jackie and Yui are able to walk around
together, create a list of neighborhoods
most at risk from rising sea levels, and
make accompanying notes for both Jackie
and Yui to discuss with colleagues in their
respective departments. After exploring
how different sea-level rise projections will
impact properties and businesses, Jackie
invites their boss to present options for
further research into strategies to mitigate
potential risks to beachfront neighborhoods.
Those scenarios answer the question:
What could the metaverse be? But an even
more important question is: What do we want
the metaverse to be, and how will it impact
our residents?
With our current understanding of the
metaverse, there are many possible
“best-case” scenarios.
Increased information: Information about
the city and its services are more accessible
through the metaverse. Instead of combing
through an outdated city website, residents
interact with virtual advisors in the metaverse
who can help point them in the right directions.
Accessible services: People who have mobility
limitations, time constraints with childcare,
or fixed work hours do not need to travel to
access city services. There may be increased
opportunity for self-service outside of typical
working hours for services that do not require
a city staff person to be present. Moving city
services online also means that should future
crises like the COVID-19 pandemic arise, city
operations will already be equipped to handle
necessary changes in government operations.
More community connections: The city can
hold cultural events live in the metaverse so
people from around the world can attend.
This makes events more accessible to city
residents who might have mobility limitations
or time constraints with childcare and helps
city residents feel more connected. This can
also help make the city more attractive to
outside visitors who might be convinced to
come spend time and money in the real world.
New economic opportunity: The metaverse will
create a new digital economy. Content creators
and entrepreneurs will find near limitless
opportunities to thrive in the metaverse. The
metaverse can generate income for residents,
entrepreneurs and the city, opening up a
virtual economy that is more accessible
and provides new goods and services.
But no best-case scenario is worth
entertaining without also considering
the potential challenges. Governments
must learn a lesson from the growing
power of the technology sector. Otherwise,
the metaverse will perpetuate many of
the current challenges associated with
increased technology use in cities.
Spread of mis- and disinformation: Social
media platforms have played a central role
in the spread of mis- and disinformation,
leading to increased polarization and a
rising mental health crisis. The metaverse
will offer similar opportunities for bad
actors to disseminate misleading or false
information, and if left unaddressed
regulators will once again find themselves
behind, rather than ahead of, this threat.
Continued inaccessibility: To access the
metaverse, people need a device and enough
internet bandwidth to connect to it. Knowing
what we do know about the digital divide
and inequities in access to new technologies,
access to the metaverse will prove inequitable.
People may be left behind and alienated
should the transition to the metaverse happen
too quickly or without regard for access issues.
19 NATIONAL LEAGUE OF CITIES
How might cities engage with the metaverse in the future? NATIONAL LEAGUE OF CITIES 20
Rising inequities: With any new technology
comes the risk of job displacement. The
metaverse will impact the demand for certain
jobs and the skills required to do them. Without
a thoughtful approach, the metaverse has the
potential to increase the inequities in our cities.
In short, the metaverse will not be a panacea
that will solve all of our persistent problems.
Without care, the things we create will
engender the same biases and societal ills that
already exist in the physical world. Gentrification
in the metaverse has already sparked concerns.
Jason Rosenstein, CEO of Portion — an online
marketplace for artists and collectors to sell
and invest their art — said the 2022 metaverse
land boom is the “first digital gentrification
in history.”25 People are already experiencing
sexual harassment in the metaverse. In response
to a recent harassment incident in Horizon
Worlds, Meta’s early-stage VR software for
Oculus, Meta added a new Personal Boundary
which prevents avatars from getting within four
feet of each other.26 But as the metaverse is still
in its infancy, it is unclear what other unforeseen
challenges might arise. As the metaverse
continues to evolve and grow, we will have to
address many of the same issues that surround
us in the real world. City leaders have the
opportunity and responsibility to be active in
shaping the metaverse to minimize the negative
impacts and maximize its positive potential.
CONCLUSION
CITY LEADERS HAVE AN OPPORTUNITY
TO PLAY A PART IN HOW THE METAVERSE
COMES TO BE, AND STAYING INFORMED,
PROACTIVE AND CURIOUS IS THE CRITICAL
FIRST STEP.
Though still in its infancy, the metaverse is quickly becoming a part of our physical and digital lives, and city leaders should anticipate its arrival.
Strong civic leadership involves embracing what is next and adapting it to meet community needs, and those cities that choose to invest in the metaverse will be the first to realize the benefits of increased information sharing, more accessible city services, stronger connections with and between community members, and a new virtual economy.
While cities like Seoul, Santa Monica and Shanghai have already begun the foundational work to make these potential benefits a reality, they will only be realized if city leaders are involved in the metaverse’s ideation and creation. This means understanding what the metaverse is and could be, its potential impacts on daily life and the new economy that will inevitably blossom within this virtual domain.
But while advances in technology present new opportunities, they also threaten to leave some people behind. City leaders will need to ensure residents have access to the foundational technologies needed to access the metaverse, taking special care to understand the specific barriers to accessing these technologies so they can bridge any digital divides. Just as Web 2.0 disrupted the way people live, work and play, so too will Web 3 and the metaverse.
WITHOUT A THOUGHTFUL APPROACH,
THE METAVERSE HAS THE POTENTIAL TO
INCREASE THE INEQUITIES IN OUR CITIES.
MARKET
CITY HALL
CIVICTECHIE42
SOCCERGIRL33
LOCALBIZOWNER84
URBANDESIGNER9
BOOKWORM5
FOODIEFAN207
HISTORYBUFF1786 MAYOR
21 NATIONAL LEAGUE OF CITIES NATIONAL LEAGUE OF CITIES 22 Endnotes
1 Radoff, J. (2021, April 7). The Metaverse Value-Chain.
Medium. www.medium.com/building-the-metaverse/
the-metaverse-value-chain-afcf9e09e3a7
2 Choudhury, N. (2016). World wide web and its journey
from web 1.0 to web 4.0. International Journal of Computer Science and Information Technologies, 5(6), 8096-8100.
3 TikTok. (2020, August 12). The Weeknd experience,
an innovative TikTok live stream, draws over 2
million unique viewers. newsroom.tiktok.com/en-us/
the-weeknd-experience-an-innovative-tiktok-livestream-draws-over-2-million-unique-viewers 4 Nishijima. I. (2021, August 30). Ariana Grande x
Fortnite Rift Tour: the apogee of pop culture or just the beginning? Medium. www.medium.com/headlineasia/
ariana-grande-x-fortnite-rift-tour-the-apogee-ofpop-culture-or-just-the-beginning-5052584f8d63 5 Chaturvedi, O. (2022, February 15). Miller lite
super bowl commercial running in the metaverse.
Techstory. www.techstory.in/miller-lite-superbowl-commercial-running-in-the-metaverse 6 Meta. (n.d.). About. about.facebook.com/meta
7 Barbaro, M. (Host). (2022, January 20). Microsoft and the metaverse. [Audio podcast episode]. In The Daily. New
York Times. www.nytimes.com/2022/01/20/podcasts/
the-daily/metaverse-microsoft-activision-blizzard.html
8 www.medium.com/building-the-metaverse/
market-map-of-the-metaverse-8ae0cde89696
9 Lee, L. H., Braud, T., Zhou, P., Wang, L., Xu, D., Lin, Z., Kumar, A., Bermejo, C., & Hui, P. (2021). All one needs to know about metaverse: A complete survey on technological
singularity, virtual ecosystem, and research agenda. ArXiv Preprint ArXiv:2110.05352. www.arxiv.org/abs/2110.05352 10 Edinger, J. (2021, August 16). Can augmented reality change how people experience cities? Government
Technology. www.govtech.com/civic/can-augmentedreality-change-how-people-experience-cities 11 Buffalo Olmsted Parks Conservancy. (2021, June
29). BOPC launches updated mobile app. www.
bfloparks.org/bopc-launches-updated-mobile-app
12 Violino, B. (2021, April 22). How 3 U.S. cities are getting smarter via the latest technologies. IDG Insider Pro. www. idginsiderpro.com/article/3614765/how-3-us-citiesare-getting-smarter-via-the-latest-technologies.html 13 Smith, S.F., Gregory, J.B., Xie, X., & Rubinstein, Z.B. (2013, January 31). A decentralized adaptive signal control
system could reduce fuel consumption by 4.3 million
gallons and total emissions by 39K tonnes annually, if
deployed city-wide in Pittsburgh. Intelligent Transportation Systems Joint Program Office www.itskrs.its.dot.gov/its/ benecost.nsf/ID/f87d2d8bd84588ad85257af3005f6373
14 Tomorrow. City. (2021, March 22). What is a digital twin? www.tomorrow.city/a/what-is-a-digital-twin#:~:text=A
digital twin is a,a building to be monitored
15 Solomon, A. (2021, November 1). Are digital twins
the future of urban planning?. Smart Cities Dive.
www.smartcitiesdive.com/news/are-digitaltwins-the-future-of-urban-planning/609232 16 Patrick, B. (2018, April 23). Meet Boston’s Digital
Twin. ESRI. www.esri.com/about/newsroom/
blog/3d-gis-boston-digital-twin
17 ABI Research. (2021, July 28). The use of digital twins for urban planning to yield U.S. $280 billion in cost savings by 2030. www.abiresearch.com/press/use-digital-twinsurban-planning-yield-us280-billion-cost-savings-2030 18 Poon, L., & Holder, S. (2018, May 31). The tech that’s changing how cities help the homeless. Bloomberg
CityLab. www.bloomberg.com/news/articles/2018-05-31/
how-the-blockchain-can-help-the-homeless
19 Falcon, R. (2021, May 3). Could Blockchain tech be the key to helping Austin’s homeless population personal
info on hand? KXAN. https://www.kxan.com/news/local/
austin/could-blockchain-tech-be-the-key-to-helpingaustins-homeless-population-personal-info-on-hand/ 20 Cheng, E. (2021, December 31). Shanghai doubles down on the metaverse by including it in a development plan.
CNBC. www.cnbc.com/2021/12/31/shanghai-releasesfive-year-plans-for-metaverse-development.html 21 Staff. (2021, December 7). Downtown Santa
Monica becomes first U.S. city to join the
metaverse. WeRSM. www.wersm.com/downtownsanta-monica-join-the-metaverse-flickplay 22 Donato, D. (2021, December 13). Santa Monica is using the metaverse to gamify its shopping district. Dot.LA.
www.dot.la/santa-monica-metaverse-2656021933.html
23 Seoul Metropolitan Government. (2021, November 8).
Seoul, first local government to start new-concept
public service with “metaverse platform.” english.
seoul.go.kr/seoul-first-local-govt-to-start-newconcept-public-service-with-metaverse-platform 24 Squires, C. (201, November 9). Seoul will be the
first city government to join the metaverse. Quartz.
www.qz.com/2086353/seoul-is-developinga-metaverse-government-platform 25 Editor’s Desk. (2022, February 9). $.12 million
plot of metaverse land sold as the ‘first digital
gentrification.’ Blockchain Magazine. www.
blockchainmagazine.net/1-2-million-plot-of-metaverseland-sold-as-the-first-digital-gentrification 26 Barmann, J. (2022, February 4). Meta already has a
sexual harassment problem in the metaverse. SFist.
www.sfist.com/2022/02/04/meta-already-has-asexual-harassment-problem-in-the-metaverse
NATIONAL
LEAGUE
OF CITIES