You Can Now Become a Landlord in the Metaverse 

You Can Now Become a Landlord in the Metaverse 

Metaverse platform Decentraland has announced a new feature for LAND owners to earn passive income off their virtual assets. Owners can now rent out their properties via the platform’s NFT marketplace. 

Ethereum-based metaverse platform Decentraland has unveiled a Rental System that will allow landowners to rent out their properties and earn passive income off of their assets. With the new system, landowners in the virtual reality world can list their properties and look for tenants on the platform’s non-fungible token (NFT) marketplace. 

Properties in the Decentraland metaverse are called LAND, and are available as a single “Parcel”, an “Estate” or both. LAND holders are issued a smart-contract that identifies properties by the owners’ accounts or Ethereum wallet addresses.

LAND owners can now set a desired daily rental price and the duration of the lease in the metaverse platform’s marketplace. Interested parties will pay the owner with MANA, the native token of Decentraland, to rent out the properties. The rental agreement between the owner and tenant will be registered as a smart-contract and stored on the Ethereum blockchain by the Decentraland Foundation – the overseer of the platform. When the rental contract expires, LAND owners have to manually claim their property and list it up for rent again. 

You Can Now Become a Landlord in the Metaverse 

LAND parcels are ERC-721 non-fungible tokens (NFT) but are not powered by ERC-4907, a new Ethereum standard that allows rentable NFTs. Unlike Decentraland’s LAND tokens, the standard developed by Double Protocol allows the NFTs to automatically revert back to the owner once the rental period is over. While the technology can be applied to items other than virtual lands, Double Protocol intends the standard to be applied to metaverse real estate. 

In a blog post announcing the feature, Decentraland explained potential use cases for the system. The company took examples of a virtual DJ who could rent out their LAND parcel as a nightclub, and a digital university that rented out land to build virtual campuses. Similar to normal rental agreements, owners will not be able to sell or receive any purchase bids for their LANDs until after the rental contract comes to end. 

Also Read Crypto Companies will be Forced to Provide EU Customers’ Transaction Information to Tax Authorities

The floor price of LAND parcels sits at around $2,380, making it one of the most valuable virtual real estates in the industry. At the time of writing, MANA is trading at $0.40, up by 1.9% in the last 24-hours. With 1.8 billion tokens currently in circulation, Decentraland has a total market valuation of $731 million and is one of the fastest growing metaverse platforms in the world.

Also Read Bank of England Expected to Raise Interest Rates to 3.5% Next Week

Backer B
Written by

Backer B

Blockchain Expert

Fascinated by Blockchain technology and its evolution, Backer. B studies the space up close. Get on board for accurate data and analysis on Crypto, Web3, Metaverse and everything on-chain.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *