Well this one is ranging more into late 2000's territory (it was even released in >2007) but there was this flash browser virtual world called Whirled which was sorta like a mix of PalaceChat and Club Penguin. What made it unique was that most of it's content was made by the userbase, and most of it was available for free with coins that you could earn from playing games, earning trophies or just begging.
You could make stuff from simple shit such as pngs into furniture or room backgrounds, to full fledged flash avatars with states and emotes, or even your own games through which other players could earn coins.
Like most other virtual worlds, Whirled had it's own faggots as well. Trolls making virus-like screamers or earrape vid avatars, 13 year old gaia weebs with those lazy recolors of popular avatars such as Kawaiis, lazy static image/gif avatars (even "m or f" normalfags making static image avatars with pictures of themselves thinking it was some sort of fucking hookup site)
To be honest, it was always pretty cringe, but the concept was still really great. If not for flash being "obsolete" these days i'd say it could be some sort of popular VRChat alternative for toasters and people with no mics
There's actually a clone for it, but as you can see, most people have moved on since the shutdown of the original game. Hell, the death of flash player probably butchered the playerbase even more.
https://www.whirled.club/