NFTs rental market

Authors
ChristianG

Summary
Develop a market for NFTs to optimize yield and revenue in a secondary rental market.

Abstract
I put to the DAO’s consideration the idea of ​​developing a platform with an interface open to the general public, for renting NFTs.

The DAO could place the NFTs that represent elements of the games there, so that anyone interested can rent these. In this way those idle NFTs would generate a yield.

This NFTs rental market could be opened to the general public, so that anyone interested in idle NFTs can rent these on the open market. With a percentage of the funds for the DAO.

The renters could have access to characters, elements, that they may need for missions, on a rental basis. Another use case, for example, having an NFT as a gateway to an event.

Motivation
Less work intensive for DAO, and for people who own idle NFTs, such as Axies, but don’t have the time to get scholarships.

Budget
Not specified.

Copyright
Copyright and related rights waived via Creative Commons CC0

5 Likes

Hi Christian!

Appreciate your support, and unique idea. I read through your proposal and would like to provide some input from my side one it also.

While I like the idea of an NFT marketplace which enables NFT holders to put up their NFTs for lending, I don’t necessarily see the fit with Merit Circle.

Merit Circle isn’t a franchise project at the moment, but rather keeps everything in-DAO. As a result, there’s quality control, good structure / management and coaching is made very easy and scalable as most of the players play with the same type of NFTs (in Axie Infinity’s case right now).

Besides that, Merit Circle DAO Treasury counts over $96M in USDC still which can be deployed in investments in game tokens, operational NFTs, etc. - this is a large amount that likely won’t be deployed just for the sake of deploying it, rather strategic and to scale in games with a solid ecosystem.

That said, I don’t see a fit for enabling others to lend out NFTs to Merit Circle players. As it’d create some chaos. I do see a fit for a more general marketplace like this for the general play-to-earn industry. Question then is if it’s not too side-tracked to be built under the Merit Circle umbrella.

If not, then my comment would be:

  1. There’s more insight needed in timelines and budget.
  2. Would personally rather see such proposal created by someone who’s able/willing to lead a team and has access to the resources necessary to actually execute on the proposal. Which would then be covered by the DAO Treasury if voted in favor for by the community.

With that, happy to kick off the conversation and open to feedback from others.

Marco

2 Likes

Hi Christian,

I am Bailey from DeFiance Capital. Really happy to see community proposals here.

While I think it is a great idea to connect idle NFT assets with the players of Merit Circle, I am cautious of sidetracking as mentioned by @Marco. There are definitely some projects in the space working on this problem and it could be more efficient to leverage on such partnerships in the future rather than building it in-house.

I am sure the DAO would be willing to fund this feature if a contributor would like to lead the development!

2 Likes

Hey @ChristianG ,

Mathijs here from Maven 11. Just wanted to chime in on your proposal to provide some context from our perspective.
As Marco and Bailey mentioned, facilitating an external-facing NFT renting platform is perhaps not the right timing this early phase of the project.
Although it’s a great idea with a clear value proposition, developing it will take a lot of developmental time and resources, which we’d argue could be better spent on the core activities of Merit (among which will be their solution for in-DAO-lending of NFTs to players).

Additionally, multiple different NFT lending platforms already exist that are at least tangentially related to your proposal. Perhaps partnering with these makes more sense building it out ourselves. Some of the current NFT lending platforms we see are;

  • NFTfi, allows users to take out NFT-collateralized loans (for transparency purposes, we’ve invested here)
  • reNFT and Pawn.fi, both similar to NFTfi

It would also be interesting to look into EIP-2615, which proposed a new ERC-2615 standard for rentable NFTs back in 2020 - although the development for this seemingly didn’t end up going anywhere. We would suggest that it would make more sense for Merit to either develop tech that is necessary to facilitate this sort of lending of NFTs held by the DAO to players.

2 Likes