Educational Post #2 — Scholarship Automation
We often write about the term “Scholarship Automation” — but what does this really even mean?
Scholarship automation means nothing more than automatic revenue sharing between the lender and the renter of some in-game token(s).
With reNFT’s scholarship automation product, NFT owners are able to lend NFTs to others with a pre-defined revenue share split for that specific asset. The protocol will automatically distribute earnings of any in-game earned tokens according to the pre-defined percentages.
This means that the renter does not need to pay to rent an NFT, but can simply use it, as the revenue from playing the game will be automatically shared with the lender — without any third party involvement.
Here is a simple real-life example:
I own a car and want to lend it to someone who will use it to transport passengers in order to earn money. Instead of setting a rental price and duration upfront I “automatically” receive a 50% share of the revenue he earns by transporting passengers.
Instead of agreeing to a rental fee of $200 per week and a total rental period of 4 weeks, I “automatically” receive a 50% share of the revenue generated by carrying passengers.
This method of profit sharing, which sounds very simple in real life, is very complicated in the NFT space and requires a lot of time and work. Most of the time, profits generated by the scholar have to be tracked using spreadsheets and then manually divided between the lender and renter in a method requiring trust on the lender’s side. This is usually done by a so-called scholarship manager.
With our scholarship automation product, we are able to eliminate the need for a third party “manager” completely, resulting in even more income from lending NFTs. Also, the generation of passive income from NFT lending can be increased indefinitely, it makes no difference if someone has 3 NFTs and lends them out or over 300 NFTs.
This allows fully trustless play-to-earn asset lending for the first time for every single NFT owner, gaming guild, and scholar.
Feel free to reach out if you want to learn more about our scholarship automation, NFT rentals or how you can integrate our rental solution into your project!
About reNFT
reNFT is a multi-chain NFT rental protocol and platform that can be whitelabel integrated into any project to enable collateral-free in-house renting, lending and scholarship automation!
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