We are at a point in time where “NFT” is a household term. DappRadar says that NFT’s market capitalization has reached $22 Billion, which is 22,000% more than the year before. So as digital asset ownership seems to be reaching a peak, the question now is – what’s the next big thing for NFTs?
The immediate future will see NFT borrowing and leasing as an avenue for passive income generation for both owners and borrowers.
NFT leasing This technology is already gaining traction, principally through closed environment scholarships in P2E games like Axie. Some of the most prominent crypto projects have pushed these initial NFT leasing functions to help build and guide an upcoming strong economy that revolves around wider NFT utility cases.
Although these NFT lease protocols are a good business model and provide passive revenue streams that can be attractive, there’s more to the story. Leasing NFT assets is a way to make huge gains. This is where nFLARE DAO steps in: a self-governing marketplace for NFT asset rentals.
A ®evolutionary new model of NFT marketplaces
Humans care about their social standing and what others think of them. If you make it seem like you are wealthy, they may have a negative opinion. Some people hire a Ferrari to appear richer in real life. This opens up opportunities for them and expands their network. On social media, this form of “peacocking” is very common. It is not uncommon for people to pay large sums to get a NFT to be their profile photo for one week.
However, if you leave aside the social media ladder, it is clear that the financial logic behind making NFT rights leaseable on large scales has the potential to generate significant financial value and can be used across a variety of niches.
Use cases
Unlike most assets in crypto that don’t fulfill a real utility, if used as intended, NFTs offer real valuable use cases for gamers, investors, content creators/artists, and of course, traders looking to generate passive income deriving from their specific niche of interest or work. NFT leasing can be seen in the following:
- Leveled-up characters, assets and gear in-game, as well as future skins
- Metaverse real estate investments
- Available as both online and offline merchandise, copyrighted collectibles
- This copyrighted content can be used in audio or video as a creative for royalties, as well as as consignment stock in galleries and other exhibitions.
- DeFi instruments
- Only a few venues are available
Gaming
Play-to-Earn (P2E) gaming is and will be a vertical operating independently of market sentiment, as it doesn’t matter if the crypto market as a whole is bullish or bearish, gamers will do what they do – play games and earn rewards while doing it. It’s easy to make this industry niche, already large, a target. In P2E gaming, borrowing NFTs
These stats will allow you to see the market share.
Globally, there are approximately 3.1 billion gamers. These include 1.42 Billion in Asia, 383 MILLION in Latin America and 261 Million in North America. And the gaming industry revenues reached $175.8 million in 2021.
There are many farms today where NFT characters and equipment are expertly built and leveled up before being sold. Problem is, the NFT owner is losing the asset’s appreciation over time. LeasingNFTs are a way to multiply the yield potential on an original investment and solve this problem. This creates both a win/win situation for lessees and lessors of NFT assets.
Through NFT leasing, gamers, as borrowers, can rent NFTs they can’t afford to buy or that are already leveled-up and use them to access restricted areas or as tools for boosting their in-game rewards. Through a revenue-share arrangement, lenders (NFT owners renting out an asset) will take a cut of any cryptocurrency earned by the borrower while they play. It’s similar to scholarships but with different assets.
You want to get royalties?
Gallery, museums and other exhibition spaces already appreciate NFTs for authenticated artwork reflections. The next steps in NFT-backed artwork adoption will be individuals leasing their NFT copyrighted content (visual artworks, audio pieces and collectibles). merchandise The profits of each sale will be split between the NFT lender and borrower. Artists can also generate passive income through leasing rights to NFT-backed content to creators or KOLs. royaltiesYou can earn money by sharing the videos or audio on social media.
Real estate is on the rise
NFTs can generate real revenue, not only from the speculation of price pump chasers. Demand for virtual land will increase as mega-corporations, such as Microsoft and Meta (Facebook), invest heavily in the metaverse’s future and drive its adoption among their vast user bases.
Smaller companies will soon follow the lead of large corporations in this area, looking for prime real estate in virtual locations for marketing. Smart investors in crypto, finance and realty will find lucrative opportunities for investment in virtual realty for commercial lease purposes.
More people will spend time online and more companies will want to be there. Virtual real estate, just like other real-world assets, will continue to grow in popularity as it is used for marketing, corporate headquarters, prime locations, and for the sale of virtual land. This includes everything from online casinos, technology events, eCommerce shops and all things in between.
A hybrid of Technology & Community
nFLARE is not “another NFT marketplace”. It’s not another way for whales to practice wash trading or about chasing hype.
nFLARE is about commercializing actual use-cases of NFTs as tools for generating a passive income for lessors and added value to borrowers, or in other words – it’s about opening up a secondary economy in the NFT industry.
The increased availability of NFT space will allow for multiple leasing options, including DeFi, P2E, Copyrights and Virtual Real Estate.
As the functionalities of NFT leasing become more widely available, the value of NFT projects will soar and the assets’ lifetime value will rise considerably through generating fixed income from leasing fees, which will increase as the value of the NFT itself is leveled up over time.
While the development of collateralized smart contracts or an uncollateralized NFT leasing multisig wallet is fairly straightforward, the real power driving a utility project is its community and the way it harnesses its members’ drive and reaches to propel the project forward. This is why nFLARE was built as a DAO-managed market, not a centralized marketplace. It combines modern tokenomics with shared rewards to encourage members.
NFT leasing will be the future of crypto. DAOs that harness the collective power of large communities to shape the market and interact with metaverse entities will be the benchmark for community-managed NFT markets.