NFT adoption levels have gone to new heights as daily sales volumes cross 10 million dollars regularly. With new users flocking into the digital space aspiring to gain immensely, the NFT space is coming up with newer ideas to allow new users to experience it. NFT rental marketplace development is one such application that provides opportunities for people to witness the NFT space firsthand without being fully involved in it. We will see why one should launch NFT rental marketplace platforms for business in this blog, along with various elements and functionalities involved in the platform.
Table of Contents
- What is the Scope for Renting NFTs?
- Type of NFT Rentals
- NFT Rental Marketplace Development: The Business Model
- Process Flow in an NFT Rental Marketplace
- Benefits of a Rental NFT Marketplace for Users
- How Can a Business Benefit from Launching an NFT Rental Marketplace?
- Major Niches with Potential for Rental NFT Marketplaces
While renting NFTs might not seem like a great income option, the potential it holds is immense. Especially considering the space is still in the adoption phase, where most people look to get into the space without spending too much money. NFT renting could be a powerful facilitator for the transition to Web3.
On the other hand, NFT owners can have an option to gain passive income by levying rent for their assets without having to sell them completely. The process mutually benefits NFT holders and new users that open a potential market regulated by smart contracts. NFTs based on loyalty programs, gaming, and communities mainly benefit from the process.
- Collateral Renting is where the renter needs to offer collateral such as cryptocurrency or NFTs to get the NFT. In case the NFT is lost or damaged, the owner can have the collateral to themselves.
- Collateral-less Renting is where no collateral is required to be submitted in order to gain the NFT. To safeguard the original owner’s interest, a high rent may be levied on the NFT.
- Time-based Renting is where the rent will only be charged for the time the NFT is used. This method is feasible for people wishing to use an NFT for a short time.
- Subscription-based Renting is where the renter needs to pay a recurring fee (monthly or annually) to use the NFT. This method is viable for people wishing to use NFTs regularly without spending huge amounts of money to own them.
- Royalty-based Renting is where the renter needs to pay a royalty alongside the actual rent. Royalties usually are earned each time the NFT is sold, and extending it to renting can enhance passive income for NFT holders.
So far, we have seen how NFT rentals work. It is now time to see more about the business model actually facilitating the process.
An NFT rental marketplace is a platform that allows NFT holders to rent out their valued NFTs to eager users through easy-to-use interfaces. While the platform’s functionality might not necessarily make it a marketplace, its look and working make it one. Multiple platforms already exist, although the competition is not as stiff as other established business models, such as NFT marketplaces or play-to-earn (P2E) games. The platform is mostly governed by functionally-rich smart contracts that align it with its Web3 roots.
- An NFT owner lists their NFT for rent on the NFT rental platform after creating an account and connecting their wallet. They have to set the rental costs and relevant conditions.
- An NFT renter wanting to get an NFT can search on the marketplace to find the item they wish to rent. They should check the price and conditions before proceeding to pay the fee.
- The NFT rental agreement serves as the pivot between the owner and the renter. It contains details about rental fees, terms and conditions, and even security deposits in some cases.
- After both parties agree upon the rental agreement, a wrapped version of the NFT is sent to the renter. The original NFT is held on the agreement smart contract, ensuring its safety. They can use the NFT per their wish (abiding by the terms) during the rental period.
- After the rental period is over, the wrapped NFT is sent to the smart contract, where it is burned, and the original NFT is then returned to the owner. The renter might be required to pay additional fees, such as damage or late fees.
Launch NFT Rental NFT Marketplace Applications to Gain an Upperhand in the Industry!
An NFT rental marketplace benefits both NFT holders and renters in numerous ways. For example, an NFT owner can gain passive income by renting out their NFTs, irrespective of the change in their underlying value. For renters, these platforms can let them try out various NFTs without having to invest huge amounts of money to purchase NFT items.
These platforms even impact users in the wider NFT market as they enhance liquidity for NFTs. This is possible as they allow people to rent out digital assets on the go, which results in a thriving NFT market in the long run.
From a business perspective, NFT rental marketplace development is a beneficial business option for many reasons. Firstly, the platform’s nature allows it to be active at all times, irrespective of the wider market sentiments. This is because most users here will either come for the passive income opportunity or the possibility of trying out premium NFTs at a lower cost.
Its potential also leads businesses to rack up revenue through transaction fees, listing fees, and premium membership fees in some cases. Overall, businesses wanting to launch NFT rental marketplace platforms can be assured of a vast user base and steady revenues.
- Play-to-Earn (P2E) Gaming
- Blue-chip Profile Pictures (PFP)
- Subscription Memberships
- Loyalty Programs (Virtual/Real-world)
- Metaverse Land
- Real-world Assets
- Digital/Physical Memorabilia (Celebrity, Sports, Events, etc.)
- Creative Works (Art, Music, Photography, etc.)
Why Choose Blockchain App Factory to Create Your Rental NFT Marketplace?
Now that you know most things about creating a rental NFT marketplace, we are here to say how our experts can come in handy to build one for yourself. We have an experienced team of professionals who can aid in launching your NFT rental platform from scratch. Our excellence in working with the latest technological stacks that include over 10 prominent layer-1 and layer-2 blockchain networks lets you have a powerful platform. We also utilize agile development methodologies to keep your project going at all times while levying reasonable charges. From consultation to post-launch support, we’ve got you covered!
Henceforth, we have discussed the NFT rental marketplace development model in full detail. While the underlying business model is still evolving, it has a vast potential awaiting the right time to boost up. By seeing how the market trends stack up, we can say the time is ripe for businesses planning to launch NFT rental marketplace solutions. With the NFT market size expected to reach 3,162 million dollars by 2027, the possibilities for such novel applications continue to grow. So, what are you waiting for? Fill out the form below now to contact one of our professionals about your new rental NFT marketplace.