Launched in July, ERC4907 facilitates NFT rentals.
- reNFT raises $5M to build infrastructure for NFT leasing;
- Cardinal raises $5M to build NFT leases on Solana;
- IQ Protocol raised 12 million to build a rental marketplace;
- Here, let’s discuss the future of NFT leasing.
NFT leases work in the same way that leases of physical assets work. It is an agreement between the “owner” and the “renter” to use the assets belonging to the owner for a specified period of time in exchange for cash.
Currently, some common ways to rent NFTs are:
- No change of ownership – the renter can only “use” the NFT, but not “own” the NFT, and the rights of the owner and the user are different.
- Guaranteed Temporary Change of Ownership – Tenants deposit collateral and receive NFTs.
ERC4907 is a standard proposed by DoubleProtocol. As an extension of ERC721, rights are divided between owners and lenders (users). NFT projects are given different permissions based on their role, for example, renters will not have permission to edit NFT metadata.
Simply put, ERC4907 adds two properties – user (tenant), expiration time. After expiration, NFTs are automatically transferred to the owner without on-chain transactions to save gas. What’s the benefit of doing this?
Guilds solve the NFT leasing problem through manual coordination, with managers buying NFTs and renting them out to academics. Games like Pegaxy have built their own rental marketplaces to help new players rent NFTs without signing up for a guild.
Anyone can build an NFT marketplace, and ERC4907 is able to connect NFT owners and renters. Owners can generate rental yields on their NFTs without requiring the NFTs to leave their wallets, and as more owners put their assets for rent, tenants gain liquidity and cheaper prices.
Project parties can add metadata on the basis of ERC4907 to expand functions. IQ allows users to define different income dividends and different rental fee types, and Cardinal is building more use cases for Sol NFTs.
What is the future of NFT leasing? In my opinion, it increases the utility of NFTs and unlocks more valuable use cases such as:
- Content – Free Trial, Membership;
- GameFi – guild management tools, game rental;
- DeFi – self-payment loans, bonds, swaps;
- Fan-like NFTs – Through the NFT rental function, fans can be protected from fraudulent sites by scammers, and can also track prices and ensure on-chain legitimacy
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-changes-will-the-arrival-of-erc4907-bring-to-nft/
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