AFKDAO: Opening up the rental economic system for Web3 video games
In 2021, the GameFi venture represented by Axie Infinity mixed NFT with DeFi and efficiently introduced P2E (Play-to-Earn), a brand new financial mannequin, into the mainstream market. The utility NFT property that have been prevalent within the GameFi venture progressively developed into an essential asset class within the blockchain world, whereas the demand for releasing the worth of utility NFT property, selling liquidity, and offering associated supporting NFTFi companies can also be rising daily. The prevailing NFT infrastructure tremendously limits the size growth of P2E initiatives.
The present mechanism to handle the circulation of NFT property in most Web3 sport lifecycles is missing. For sport taking part in guilds (Guilds) usually lack efficient measures to hedge the chance of NFT treasury, and their scale growth is restricted; extraordinary Web3 sport gamers lack adequate time {and professional} abilities to take part in P2E, and they should bear idle NFT property on the alternative price.
Though funding within the Web3 sport circuit has quickly grown since 2023, the present Web3 sport market improvement is much from what was envisioned. Most Web3 video games should not sustainable, whereas the rental economic system of Web3 video games is contributing to Web3 video games turning into a extra sustainable economic system.
Hire to Purchase: The Key to Sustainable Web3 Video games
Every part in the actual world will be rented out, from rechargeable batteries and automobiles to garments and homes, and the NFT sector isn’t any exception.
With the explosion of NFTs and Web3 video games immediately, though the NFTs for these Web3 video games are distinctive and numerous, NFTs should not low cost to purchase and gather. In Web3 video games, renting as a substitute of shopping for creates a secondary financial cycle the place NFTs do not simply sit idle within the person’s pockets, in addition they present passive revenue for renters.
From a renter’s perspective, NFT leases supply a low-cost choice to reap the benefits of among the companies NFT gives with out having to spend tons of or hundreds of {dollars} on them, comparable to entry to premium members-only content material. Web3 video games give their holders the chance to compete in aggressive PvP tournaments and the prospect to win with the identical heroes. Renting “NO Give up Heroes NFT” will enable renters with decks powered by higher-level heroes to earn a living from their holdings.
For renters, it is like renting a hero from a web-based catalog – you combat in a brief event after which return it. There isn’t a must make a long-term dedication to carry it, and renting as a substitute of shopping for not solely lets you share it with others for a price but additionally lowers the barrier for gamers to take part and promotes the sustainable improvement of Web3 video games.
AFKDAO: Full-stack closed loop of the NFT leasing protocol layer
The market has not paid sufficient consideration to this observe for this brand-new person demand, however there are already some pioneers who’ve began exploring this area. The present marketplace for NFT leasing options is especially divided right into a capital pool mannequin and a P2P mannequin. Though the capital pool can rapidly meet the lending demand, the productive perform of NFT is locked. The P2P mannequin, alternatively, has larger rates of interest. The NFT market lacks options that set up new underlying asset requirements to facilitate the event of NFT lending situations.
Taken collectively, many of the groups are implementing the lending/leasing perform of NFT property from the enterprise mannequin/product innovation perspective, whereas AFKDAO chooses to start out from the underlying protocol and proposes a brand new normal, ERC-4610, which may basically activate the DeFi-enabled software of NFT property and improve the effectivity of NFT asset liquidity.
AFKDAO staff launched a set of sensible NFT DeFi infrastructure options together with the brand new ERC normal, making an attempt to use to Web3 avid gamers with the assistance of DeFi’s product mannequin. Technically, AFKDAO has constructed a full-stack closed loop for the NFT lease protocol layer.
In the meantime, the AFKDAO staff has partnered with over 50 initiatives, together with PlaceWar, Faucet Fantasy, Ragnarok Cryptoverse, Kyberdyne, Frontera NFT, Godland, and plenty of extra.
Abstract
As increasingly more Web3 video games turn into mainstream, leasing will turn into an essential supply of passive revenue for NFT holders. AFKDAO’s complete product system, revolutionary protocol requirements, and a powerful staff and operational capabilities have the potential to fully unlock the leasing economic system for Web3 video games.
