Play-to-earn NFT games (P2E) are fast gaining popularity. By combining crypto and blockchain with gaming, players can earn rewards in the form of NFTs and/or tokens. Now a new trend is taking shape: NFT rentals. What are they and how do they work? Find out!
NFT Rentals Explained
With gaming NFT rentals, users can rent an NFT without any third-party involvement, and the owner receives a cut of the earnings generated.
In other words, if you’re an NFT owner, you can stake your NFT in a game, and the players who rent it will give you a cut from the revenue they generate. It's a win-win resulting in passive incoming for the owner and play-to-earn income for the renter.
But who are the renters and how does this business model create value for the NFT gaming industry?
The consumers of NFT rental services are quite diverse, ranging from people who are seeking long-term accumulation of tokens, to those who are more interested in short-term gains.
Renting incorporates in-game assets like weapons, skins, gears, characters, and other items depending on the game. The rarer the item, the more gamers can earn, so the overall premise is quite simple.
Games like Axie Infinity require you to own NFT assets to play the game. However, these NFTs can be very pricey. Thus, Axie Infinity contributed the "scholarship model" to the P2E space. This is their version of NFT renting. Scholarships/renting are important because poorer players, via NFT rentals, can access a game and earn rewards without making any initial NFT investments.
NFT Rentals - Why Is This Trend Going to Be Big?
NFT rentals will only become more popular over time. They'll increase accessibility to P2E games and grow the space.
Right now, the trend is still in its infancy because entering the P2E world isn't very user-friendly. There aren't many profitable models with automatic payouts available. A lot of innovation and refinements are needed.
Games like Axie Infinity, Splinterlands, and The Sandbox are already leveraging the P2E NFT model to the fullest, but now the future seems to be NFT rentals.
Thousands of gamers have already joined this passive income venture while playing some of the games that they love. NFT rentals are bringing in a unique way of earning by letting beginners dip their toes in the P2E NFT world without having to risk too much. The trend seems likely to continue growing.