The threshold of Web3 games is getting higher as digital assets become more like real-world assets. The high capital investment in gaming NFTs makes this market a game for high-end players, and it becomes extremely difficult for consumers with small capital to purchase NFTs. More and more users are becoming spectators.
As the infrastructure continues to improve and the industry innovates, most NFTs have both collection and use value. Compared to transferring ownership, renting NFT is also a way to appreciate or realize the value. So there is a corresponding NFT rental market for illiquid NFT. How does rentable NFT expand the impact of Web3 games?
How the YGG guild helped push Axie Infinity to explode
In the Play-to-Earn game Axie Infinity, players who want to participate have to buy three elves “Axie” NFT first. But in the game explosion period, an elf may need hundreds of dollars. For ordinary users, the threshold for participation is too high.
This is where YGG comes in. In Axie Infinity’s Axie Scholarship program, there are three roles: Scholar players, managers, and the Yield Guild organization. The manager is responsible for expanding and training new players and leases three Axies as a team to players to start earning SLPs in the game at almost no cost.
After accumulating a certain amount of SLP, the manager activates the smart contract and recovers the revenue in the ratio of 70% for the player, 20% for the manager, and 10% for YGG. At the same time, YGG also purchased new assets in the game with profits and distributed them to the game guild members.
The incentive was so effective that in just about two months, Axie Infinity’s daily users jumped from 38,000 to 277,000 and its community vault grew from less than $1 million to over $14 million. More and more players + YGG guild + Axie Infinity formed a perfect closed loop, and YGG also set up a complete one-stop service including recruitment, training, and game rental to help Axie Infinity explode.
How AFKDAO implements NFT leasing with protocols?
AFKDAO created the ERC4610 standard, which standardizes the process of generating earnings from games from centralized scholarship programs to NFT.
AFK uses contracts to make a special lending pool that separates the use and ownership of NFTs. NFT holders who don’t have time to play the game can put NFT into the lending pool, while players with more time and better skills can lend NFT and participate in the game’s Play to Earn, allowing both players and high net-worth users to gain revenue.
AFKDAO has two core modules closely integrated with Defi. AFK Game Aggregator is a machine gun pool where idle NFTs are put into the machine gun pool to maximize the utility of the assets. In addition, the AFK NFT Lending Pool is similar to Compound and Aave in the DeFi space, where NFT owners put NFTs into the pool to receive dynamic interests. Meanwhile, the leasable NFT completely lowers the barrier for users to enter the Web3 game.
Rentable NFTs allow the separation of NFT usage from ownership, increasing the use of NFTs for Web3 games, and it is expected that NFT rental adoption will grow steadily alongside the NFT-based games themselves, expanding the impact of Web3 games.