Anton Link, Co-Founder and CEO of UNITBOX DAO, says leasing an NFT is an interesting idea when it comes to blockchain games.
Play to win (P2E) video games are still a new phenomenon in both crypto and gaming. However, the globe shows tremendous growth potential as a potent mix of two things everyone aspires to: fun and money.
With the continued rise of NFT rental services, entry into the P2E space has become even easier. They allow players to rent an NFT, with no virtual series attached, and pay lenders a share of their earnings. Unrequited owners, in turn, have the opportunity to earn additional passive income.
So, who is the target audience of NFT rental services? What kind of value does this model create for market participants? And how forward-looking does the field seem right now? Let’s explore.
NFT tenants: who are they?
The target audience for NFT rental services is diverse and there are people who come for a variety of reasons. Some tenants looking to improve their reputation within the NFT community are more interested in short-term flexible rent. This is so that they can set the unchangeable as a profile picture on social networks. Art installations and exhibitions, on the other hand, can hire non-mushrooms to kick off their opening with exciting, creative art or hold limited-time events with specific pieces.
A significant part of the demand comes from the players. One popular type of NFT lease is digital land plots. Homeowners with funding will invest large amounts of property and housing in play-to-win games just to lend players a way of life in-game. Such a possibility draws players into a world, gives them a safe space to call their own, and allows them to invest.
Second, renting in-game characters, skins, gear, weapons, pets and other items. In most GameFi games, these non-replaceable items are now required either to play or to give players an in-game advantage. Many games offer multiple layers of NFT, though the rarer ones are more valuable for the gaming experience.
With NFT leases and so-called scholarships, players who choose not to invest in an NFT or cannot afford the initial asking price now have the opportunity to lease just one. Or, if a player can afford a common NFT, but not an uncommon NFT, he may opt for a scholarship to measure the latter for good.
NFT leasing: The market is taking shape
The popularity of games to play has created plenty of traction in the new niche. Helped NFT charter services and scholarship providers. This leads to independent scholarship providers.
For example, two entrepreneurs from the Netherlands, Maxim de Clippelaar and Mick de Bock, launched the Axie University rental service in August 2021. They house 50 academics, all based in the Philippines, and provide a fair amount of money. NFTs to users, all while earning a percentage of all funds used by their academics.
At the same time, the market is still taking shape. More and more players are looking for ways to get involved and benefit from their time investment. However, a number of problems remain to be resolved.
Some of these problems are not inherent in gaming, but specific to the NFT field as a whole. Often when it comes to new niches, some projects are overhyped and eventually not delivered. And unfortunately, some hope to get rich quickly and attract investors with a scam. Second, they must be conscious of what they are investing their money in.
NFT rental: Facilitating adoption
How do we solve these problems? I believe one of the most important steps is to create user-friendly platforms. They can bring together lenders, offer profitable auto-pay lease models and NFT authenticity checks, and provide data to aid decision making. This is what we created at UNITBOX.
Such solutions lower the entry threshold. They will respond to user demand, create more trust and train new market participants. NFT leases will support the entire GameFi and NFT space and contribute to the development of the industry. They will help bring in more investment and liquidity, creating more opportunities for players and NFT holders.
Thousands of players are already earning passive income while playing some of their favorite games. Scholarship programs with rentable NFTs are starting to rise. It will take some time and developer effort for word to spread and more players start joining.
About the author
Anton Link is the Co-Founder and CEO of UNITBOX DAO. UNITBOX is the first unsecured lease and lease protocol and the first use case of a grant-winning wNFT technology. It leverages DeFi mechanics to bring together millions of crypto investors, tenants (guilds, academics) and players to gain access to a highly efficient investment product.
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