NFT Rentals are the Next Big Thing in Blockchain Gaming. Here’s Why.

June 13, 2022 World Blockchain

NFT rentals are an interesting idea when it comes to blockchain gaming, says Anton Link, Co-Founder, and CEO of the UNITBOX DAO.

Play-to-earn (P2E) video games are still a new phenomenon in both crypto and gaming. That said, the sphere shows tremendous growth potential, being a powerful mix of two things everyone desires: entertainment and money.

With the ongoing rise of NFT rental services, entry into the P2E space has become even easier. They allow players to rent an NFT, no virtual strings attached, and pay lenders a cut of whatever earnings they generate. Owners of non-fungibles, in turn, get a chance to generate additional passive income.

So who makes up the target audience of NFT rental services? What kind of value does this model create for market participants? And how prospective does the space look right now? Let’s explore.

NFT renters: who are they?
The audience of the NFT rental services is diverse, with people coming in for various reasons. Some renters seeking to build their reputation within the NFT community are more interested in short-term flex rent. This is so they can set the non-fungible as a profile picture on social networks. Art installations and exhibitions, on the other hand, might rent non-fungibles to kick start their openings with exciting, imaginative art or hold limited-time events with specific pieces.

A considerable portion of demand comes from gamers. One popular type of NFT rental is digital land plots. Landlords with funding will invest in large amounts of property and housing in play-to-earn games, only to lend them out to players as a form of living within the game. Such a prospect entices players into a world, providing them a safe space to call their own and getting them invested.

The second is renting in-game characters, skins, gear, weapons, pets, and other items. In most GameFi titles, these non-fungibles are now either required to play or give gamers an advantage within the game. Many games offer multiple tiers of NFTs, with rarer ones being more valuable to the gaming experience.

With NFT rentals and so-called scholarships, those gamers who choose not to invest in an NFT or can’t afford the initial asking price, now have an opportunity just to rent one out. Or, if a player can afford a common NFT but not a rare one, they might opt for a scholarship to acquire the latter for good measure.