current position:Home>What changes will the arrival of ERC4907 bring to NFT?

What changes will the arrival of ERC4907 bring to NFT?

2022-08-03 12:14:02golden finance

Written by: Sumanth

ERC4907 went live in July and it facilitates NFT rentals.

  • reNFT raises $5M to build infrastructure for NFT leasing;

  • Cardinal raises $5M to build NFT leases on Solana;

  • IQ Protocol raises $12M to build a rental marketplace;

  • Here, let's talk about the future of NFT leasing.

NFT leases work the same as leases of physical assets.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:

  1. No change of ownership - the renter can only "use" the NFT, but not "own" the NFT, the ownerdifferent from the rights of users.

  2. Guaranteed Temporary Change of Ownership - Tenants deposit collateral and receive NFT.

ERC4907 is a standard proposed by DoubleProtocol, as an extension of ERC721, rights are divided between owners and renters (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?

The guild solves the problem of NFT leasing through human coordination, with managers buying NFTs and leasing them 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 can gain liquidity and cheaper prices.

Projects can add metadata based on ERC4907 to extend the functionality.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 cases like:

  • Content - Free Trial, Membership;

  • GameFi - Guild management tool, game rental;

  • DeFi - self-payment loans, bonds, swaps;

  • Fan NFT - Through the NFT rental function, fans can be protected from fraudulent websites, and they can alsoTrack prices and ensure on-chain legitimacy

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