08 Dec 2022
You can now become a virtual landlord on Decentraland
Decentraland virtual land NFT owners can now use the platform to rent out their properties. MANA, the primary cryptocurrency used on the platform, is how renters pay daily.
Decentraland, a virtual world platform, now permits landowners to rent their properties.
The company claims that the new system enables owners of Decentraland land NFTs, referred to as LAND parcels, to find tenants in a secure, trustworthy manner.
Virtual land owners can set the daily rental rate and the lease length, and tenants pay the owner in MANA, the primary cryptocurrency of Decentraland.
The virtual landlord is manually required to decide whether to reclaim their property after the rental period has ended or to relist it for rent.
The owner and tenant data will be kept both off-chain and on the Ethereum blockchain by the Decentraland Foundation, which runs the platform.
According to Decentraland, a virtual DJ who rents out a space as a nightclub for performances is one possible use case for the system.
Since June, the Ethereum standard that permits rentable NFTs, ERC-4907, has made it possible to rent out virtual land. This token standard enables land to automatically revert to the owner once the rental period expires, unlike Decentraland's rental system. The company that developed the token standard, Double Protocol, told The Block that it sees metaverse land rentals as one of the critical markets for rentable NFTs, even though the standard can apply to things other than virtual spaces.
According to The Block's Data Dashboard, the average cost of a Decentraland parcel is about $2,380, making it one of the more valuable land plots compared to The Sandbox, NFT Worlds, and other web3 virtual worlds.
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