New Web3 Trend Rent-to-Earn
What do you think about passive income models? Which is the best?
In today’s economic crisis, where purchasing is very high, borrowers who can acquire some properties for temporary use and renters who want to evaluate their properties live in the same ecosystem. Well, have you ever noticed how the concept of renting, which is developing every day, spreads over a wide area?
Firstly, renting, which is included in our daily life with the need for houses and accommodation, continues to develop by entering other sectors with high purchasing power. Nowadays, everything from vehicles to clothes is available for rent. Renting, directly related to purchasing power at the beginning, has become a win-win for people who own property and need it for short-term use as it develops daily.
Secondly, renting was expanded to every field with its development. After that, it exploded with the inclusion in the NFT and Web3 economy. Curious about what is and the purpose of NFT renting? Let’s find out.
What is NFT renting?
Renting an NFT allows you to benefit from its advantages without making the financial commitment of purchasing one.
There is an NFT for everything, whether we like it or not. There are many NFT projects from different business areas like Nike’s game, Starbucks Rewards, NFT clothing and much more. When you explore deeper into the NFT space, you have a chance to find more unique token offerings. Even though these token offers can be unique and varied, what most of these offers have in common is the high prices of the unique offers.
NFT purchases and collections are not inexpensive. Even the cheapest NFTs from well-known projects like Bored Apes and Cryptopunks are not offered for sale at a cost that is within the average person’s means. NFT renting comes into the picture in this situation. So it means renting out tokens and providing users with the opportunity to temporarily experience what it would be like to own an NFT and utilize its benefits.
What is the purpose of NFT renting?
In the NFT environment, renting creates a secondary economy where NFTs are often just left lying idle in the user’s wallet. It provides a source of passive income for the renter. For instance, you must purchase a Flyfish Club NFT, which has a function like a membership token, to dine at American businessman Gary Vaynerchuk’s members-only exclusive restaurant Flyfish Club. When the renters are not using their membership, they can rent it to others and make a profit from it.
For the borrower, NFT renting provides a low-cost option to take advantage of some services provided by the NFT without having to spend hundreds or thousands of dollars to buy them, such as the access to premium members-only content. Look at NO Surrender Heroes, for example. The Web3 game gives its holders access to competitive PvP matches and maybe a chance to win by the same Heroes. Renting out the NO Surrender Heroes NFT would allow the renter who has a deck powered by higher level Heroes to make money off their holdings. For the borrower, it is akin to renting a Hero from an online catalog — you battle in short term tournaments and then return it. No long-term commitment is necessary!
Thirdly, after the concept of NFT renting, a new concept for web3 games emerged: rent-to-earn.
Rent-to-earn is a relatively novel concept in the gaming world. Within the P2E ecosystem, rent-to-earn is a different approach to blockchain-based gaming, and cryptocurrency companies are developing creative ways to use it. These rent-to-earn services that are appearing in the Web3 gaming industry are also having an effect.
What is Rent-to-Earn
The idea behind rent-to-earn is quite simple. It works similarly to how renting does in the real world. Participants purchase items, such as in-game assets, and then rent them out to other players. Additionally, renting makes it simpler for people who lack the funds to buy gaming equipment to participate in unique things in games.
Let’s take the example of a player having to purchase at least one character and a weapon before beginning a game. Or, suppose a player can start with free in-game resources. However, the problem is they’re less powerful and won’t get the player beyond the first level. The player must make an investment in some in-game objects in each scenario. In addition, scarcity affects pricing, much like in the real world.
On the blockchain, in-game items take the form of NFTs. And the price of an NFT increases with its rarity. Such expenses may erect a high barrier to entry for new competitors. The rent-to-earn system, however, lowers the hurdles.
Transition from NFT renting to Web3 renting
We have already mentioned that a more sustainable economic model will replace the P2E concept with F2P.
F2P refers to the business model for online games where game designers do not charge the user or player to participate in the game. The economy in these models is usually based on advertisements or in-game sales, such as payment for upgrades, special abilities, special items, and expansion packs.
With NFTs needed to begin playing new games, it is impossible to onboard thousands of new users because players must first sample games and find them engaging to decide to play them over the long term and become regular paying customers. This is why I believe NFT Rentals will make P2E games a more sustainable economy in the Web3 gaming world.
Potential 3 renting system for Web3 games
1. Level up or evolve other owned NFTs
In battle games, RPGs interact and work together in battle. You can merge your characters to a new and more powerful level by burning them. This merge is usually done with in-game tokens or NFTs.
2. Participation in special in-game events
You may need an NFT to participate in timed events and tournaments in the games. Such events and tournaments are highly competitive and packed with active user rewards. It may make sense to rent an NFT to win unique rewards and a chance to compete frequently in a game you play.
3.Using other players’ characters
When you participate in a tournament or a special battle, do you need a single character to match the cards in your deck and make them stronger? In such a case, reducing your success rate in a very advantageous tournament or a special battle would be highly unreasonable since you do not have this character. So rent a character you need and try to win!
