The increasing integration of gamification strategies in virtual environments, particularly within the metaverse, has revolutionized user engagement and brand interactions. This study examines the effectiveness of gamification rewards (GR), social competition (SC), and immersive experience (IE) in enhancing brand engagement (BE) and user retention (UR), with user motivation as a moderating factor. A quantitative research approach was employed, collecting data from 410 respondents actively engaging in the metaverse. The findings, analyzed using Structural Equation Modeling (SEM), reveal that GR and IE significantly enhance BE, while motivation plays a crucial role in influencing UR. However, SC had a weaker direct effect on retention, suggesting that competition-based gamification should be carefully designed. The study contributes to Self-Determination Theory (SDT) and Flow Theory, emphasizing the role of intrinsic motivation in sustaining user engagement. Practical implications highlight the need for businesses and marketers to adopt adaptive AI-driven gamification models that personalize user experiences. Future research should explore longitudinal impacts of gamification in the metaverse to assess its long-term effectiveness in brand loyalty and engagement.