Whether one thinks NFTs and cryptocurrencies are a ponzi scheme, or certainly believes digital assets and their underlying blockchain-based protocols representing the next tier of technological and social innovation, one thing is clear – there are currently limited income generation methods for NFTs outside of the speculative potential price increase over time, which can only be realized by a sale and the subsequent exchange of NFT ownership. ReNFT is a peer-to-peer rental protocol that allows consumers to rent or borrow NFTs on the ethereum mainnet, giving owners a way to monetize their NFTs without giving up ownership of the underlying asset. Certain NFTs come with exclusive perks, and a rising trend is for projects to include community benefits that go along with the ownership of their tokens. For example, Gary V’s Flyfish Club in NYC is an NFT-based membership and dining concept and club, where membership is tied to token ownership. Flyfish Club members could hypothetically use ReNFT to rent out their Flyfish Club tokens to other cryptonauts who are interested in visiting the club, without losing their own membership access.
ReNFT recently facilitated the lending of Stoner Catsan NFT collection whose holders have access to a library of video shorts, and Animetaswhose holders rented their tokens to give temporary access to a private Discord event. To rent an NFT, the owner- lender first sets a rental price, collateral price, and the maximum duration of the rental period for one or more of their NFTs. Then, reNFT holds the token in virtual escrow until a renter accepts the owner’s offer. ReNFT sees the future applications of its lending protocol extending into the metaverse, where users could rent out their play-to-earn items and digital real estate in metaverse worlds like The Sandbox, Decetraland, and others. Users will also be able to rent virtual ad spaces and in-game billboards within virtual platforms, potentially making NFT rentals an intriguing factor in the next generation of digital marketing. Another compelling use case for NFT rentals is the rise of NFT museums and galleries. If an organization wants to display a certain digital artwork, or collection of artworks, for an exhibition, they are now able to rent it for the event.
ReNFT is currently working on expanding its platform compatibility beyond just the ethereum mainnet to include the Solana and Polygon blockchains.
This article originally appeared in the PSFK iQ report, Foundational Initiatives For The Metaverse.