Play to make money (P2E) video games are still a new phenomenon in both crypto and games. Still, the sphere shows tremendous growth potential, as it is a powerful mix of two things everyone wants: fun and money.
With the constant increase in NFT rental services, entering the P2E space has become even easier. They allow players to rent NFT, without virtual obligations and pay lenders a share whatever earnings they make. Owners of immutable things, in turn, get the opportunity to generate additional passive income.
So who is targeting NFT rental services? What value does this model create for market participants? And how promising does the space look now? Let’s investigate.
NFT renters: who are they?
The audience of NFT rental services is diverse, and people come for different reasons. Some renters who want to build their reputation in the NFT community are more interested in short-term flexible rentals. This is so I can ask irreplaceable as a profile picture on social networks. Art installations and exhibitions, on the other hand, can hire irreplaceable items to launch their openings with exciting, imaginative art or hold time-limited events with specific pieces.
A significant portion of the demand comes from gamers. One popular type of NFT lease is digital land parcels. Landlords with funding will invest in large amounts of property and housing in earning games, only to lend them to players as a form of life in the game. Such a perspective lures players into the world, giving them a secure space to call their own and investing in them.
The second is renting characters in the game, skins, equipment, weapons, pets and other items. In most GameFi titles, these indispensable elements are now either required to play or give players an advantage in the game. Many games they offer higher levels of NFT, with the rarer ones being more valuable for the gaming experience.
In addition to renting NFT and so-called scholarships, those players who decide not to invest in NFT or cannot afford the initial asking price, now have the opportunity to just rent it. Or, if a player can afford the usual NFT, but not rare, he could opt for a scholarship to acquire the latter for good measure.
NFT Rental: The market is taking shape
The popularity of games for profit has created a lot of traction in the new niche. This has helped get NFT rental services and scholarship providers up and running. This leads to the creation of independent scholarship providers.
For example, two entrepreneurs from the Netherlands, Maxim de Clippelaar and Mick de Bock, launched their rental serviceAxie University, with $ 12,000 in August 2021. It is home to 50 scientists – all based in the Philippines – and they earn a fair amount of money by providing NFT to customers, all while earning a percentage of all the funds their scientists use.
At the same time, the market is still taking shape. More and more players are looking for ways to get involved and profit from their time invested in the game. But a number of issues await resolution.
Part of these problems is not inherent in games but in the NFT space as a whole. As is often the case with new niches, some projects are overemphasized and ultimately fail. And, unfortunately, some hope that they will get rich quickly and deceive investors. These others need to be aware of what they are investing their money in.
NFT Rental: Facilitate adoption
How do we solve these problems? I believe that one of the most important steps is to build user-friendly platforms. They can aggregate lenders, offer profitable rental models with automatic payouts and NFT authentication, and provide data to help make decisions. This is what we create on UNITBOX.
Such solutions will lower the entry threshold. They will respond to customer demand, create more trust and educate new market participants. Hiring NFT will give a boost to 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 NFT players and owners.
Thousands of players are already enjoying passive income while playing some of their favorite games. Scholarship programs with NFT for rent they start to take off. It will be some time – and the effort of the developers – before word gets out and more players start participating.
About the author
Anton Link is a co-founder and CEO UNITBOX DAO. UNITBOX is the first protocol on leasing and renting without collateral and the first case of using wNFT technology that has received grants. It helps Defi mechanics to aggregate millions of crypto investors, renters (guilds, scholars) and players to give them access to a high-yield investment product.
All information contained on our website is published in good faith and for general information purposes only. Any action taken by the reader according to the information contained on our website is strictly at your own risk.