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NFT Renting Mechanism
Renting assets out is not a new concept to the world, it’s already used in many web2 and traditional asset markets like real estate, cars, transportation, storage and some would even argue workforce. The concept of renting is not new in these traditional physical asset classes, but it is new to Web3 with assets slowly being introduced through Metaverse Land, IP NFT right contracts, and now Play2Earn gaming assets. In this section of our Whitepaper we will go in-depth on our mechanisms and how we plan to introduce renting of NFT assets.
Renting by definition is a system used for letting someone temporarily use an asset in an exchange of monetary value. We at ENZA believe in the philosophy that NFTs should have many use cases and utilities. As innovators in the space we are experimenting with rental concepts in an effort to finalize a system that will work best in our ecosystem. In the meantime here is our current vision of how it will end up. We felt that renting is needed when it comes to the future of our digital assets because not everyone will have access to the game, it is restricted to holders. Now non holders will be able to play and earn revenue as well. This builds a dynamic where holders can now generate money from their NFTs as long as the game continues to have demand.
We will have two separate rental mechanisms that we will use within our game. Each of these mechanisms will be designed and further improved upon when the time comes.
Everyday rentals will be different from our tournament rental mechanism. This is done because the tournament rental will be in a higher demand than the day to day operations of the game. We will set a cost for our day to day rental mechanism and this cost will vary based on data we collect. This renting will be done with an upfront payment, then the NFTs utility will be assigned to another wallet.
Holders will have the ability to set rent periods. This will allow non holders to chose the amount of time they would like to rent the NFT for. Renting for longer periods of time may provide users with discounted rated.
Due to the likelihood of increased demand the tournament rental mechanism will be different from the day to day rentals, this rental will have custom parameters. This mechanism will allow for a custom ‘market-made’ price which will be defined by supply and demand. An example of a tournament rental setting scenario is giving the NFT as a free rental with the condition that any prize money earned will be split equally between the renter and the NFT owner. Alternatively, another flexible rental mechanism is just setting an upfront flat rate. A NFT holder may choose either mechanism at their discretion.
Renting is a new system and this will come with its learning curve as well. Our system will be integrated into our marketplace for our NFTs.
More details into the specifics of renting will come soon…