Automatically create users subdomain with sub-folders in DO with NGINX

I need to automatically create a user subdomain when the user signup to a new account. Each user will have a different folder. For example.

/html/user1 /html/user2

Should work like this:

Should be great if just creating a new folder will be enough to automatically make it work and available the subdomain.

We are using nginx for having better performance with our app.

How we can accomplish this?, need to change something in the DNS also?

Step by step answer will be very appreciate. Thanks!

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Hey guys, i tumble on this link as i was researching to do the same thing as @mzuker but for me i use Laravel as my back-end, Nuxt Js as front-end. if u can provide me ur skype handle or email so we can talk privately so i can tell you much about my project

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