UPDATE (11th June 2019): Decentraland avatars are now available and they look great! Read the full article on how to get your Decentraland avatar here
Decentraland Avatars are still a work in progress, however, the Decentraland team seem to be excited with the progress being made.
Esteban Ordano, Tech Lead: “We are currently working in a basic support for identity features where avatars and your cryptographic credentials are the main subject. We’re exploring how to best leverage some of the emerging solutions out there, like Keybase, Blockstack, uPort, Sovrin, WalletConnect, among others. We will focus on profiles and settings, and then move to custom avatars. We want to provide a complete experience to express yourself.”