NFT rental is an interesting idea when it comes to blockchain games, says Anton Link, co-founder and CEO of UNITBOX DAO.
Gaming to earn games is still a new phenomenon in both the crypto and gaming industries. The space has a huge growth potential as it is a powerful mix of two things that everyone wants: entertainment and money.
With the increasing prevalence of NFT rental services, it has become even easier to enter the P2E area. These services allow players to rent an NFT without much hassle while the owners get a share of the revenue generated. In return, NFT owners have the opportunity to generate additional passive income.
So who is the target audience for NFT rental services? What kind of value does this model create for market participants? And how is the market situation at the moment? Let’s get to the bottom of it …
Who rents NFTs?
The NFT Rental Service audience is diverse and people use it for different reasons. Some tenants who want to make a name for themselves in the NFT community are more interested in short-term flexible rental periods. So you can set NFT as a profile picture in the social networks. Art installations and exhibitions, on the other hand, can hire NFTs to start their openings with exciting, imaginative art or to hold time-limited events with specific pieces of these virtual works.
A significant portion of the demand comes from gamers, and a popular form of NFT rental is digital lots. Well-funded landlords invest heavily in land and apartments in games to make money, and then lend them out to players to earn a living in the game. Such an opportunity lures players into a world where they can call a safe space and encourages them to invest as well.
The second option is to rent game characters, skins, equipment, weapons, pets and other things. In most GameFi titles, these NFT items are now either a requirement to play or give players an advantage in the game. Many games offer multiple levels of NFTs, with rarer NFTs being more valuable to the gaming experience.
With the rental of NFTs and so-called grants, players who do not want to invest in an NFT or cannot afford the purchase price now have the opportunity to rent an NFT. If a player can only afford a common rather than a rare NFT, they have the opportunity to achieve a rarer NFT through a scholarship.
NFT rental: The new market is taking shape
The popularity of Play To Earn Games has given the new niche a big boost and has given rise to NFT rental services and scholarship providers, some of which also operate independently.
This is how two entrepreneurs from the Netherlands, Maxim de Clippelaar and Mick de Bock, started, for example, their rental service Axie University in August 2021 with 12,000 USD. They have 50 grant recipients – all in the Philippines – and make a lot of money delivering NFTs to users. At the same time, the two receive a percentage of all funds used by their grant recipients.
But this market has only just begun to develop. More and more players are looking for ways to get involved and make the most of their invested time. However, there are a number of issues that still require a solution.
Some of these issues are not inherent to the gaming sector, but affect the overall NFT space. As is so often the case with new niches, some projects are initially overestimated and then eventually fail due to implementation. And unfortunately, there are also projects that aim to create wealth quickly and cheat investors. Therefore, the latter should always pay attention to where they are investing.
NFT Rental: Simplifying Adoption
How can we solve these problems? In my opinion, one of the most important steps is to build user-friendly platforms. You can merge lenders and offer NFT approval and profitable rental models with automatic payouts. Such platforms can also provide data to help with decision making.
Such solutions will lower the barrier to entry, satisfy user demand, create more trust and enlighten new market participants. NFT Rental will boost the entire GameFi and NFT industry and drive the development of the industry. They will contribute to more investment and liquidity and create more opportunities for players and NFT holders.
Thousands of players are already enjoying passive income while playing some of their favorite titles. Scholarship programs with rental NFTs are beginning to establish themselves. It will take some time and effort (on the part of the developer) for this concept to spread and for more players to participate.
About the author
Anton Link is co-founder and CEO of UNITBOX DAO. UNITBOX is the first security-free leasing and rental protocol and the first application of an award-winning wNFT technology. The protocol uses DeFi mechanics to provide access to a high-yield investment product for millions of crypto investors, tenants (guilds, grant recipients) and players.
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