Uncollateralized NFT Renting: A New Era of Asset Utilization

Transcript

so before we get started I want to introduce myself um I'm milish um oh and I want to thank you all for and of course the edcon organization for choosing Montenegro for this year as someone who is a proud montanarian I'm really proud to be here with you and thank you all for coming to our small beautiful country [Applause] so before we begin um today we'll be talking about unco authorized nft renting which is relatively New Concept so let's get let's break into it so to break it down what we will be talking about today is

first of all what is the unculturalized NFD renting what are the use cases for it and the new economy around it as well as how it disrupts the nft industry so without further Ado let's get to it so what is nft core uncoordized energy renting and what's the technology behind it and how it works so we had this huge problem in the end of the industry where we in order to use the utility of the nft itself you had to put up collateral usually twice as much as the word of the nft which if you want to use the utility of the nft itself it's cost ineffective imagine it in a way that if you wanted

to rent an apartment for three days you had to put down 200 000 Euros worth of deposit that's really cost efficient now is it now how the technology works and how are we solving it without any collateral so if you've decided that you want to rent out an nft you would first of all commit your nft to our protocol and our protocol and nft gets stored within our protocol on something that we call holders wallet and the borrower gets a wrapped nft which acts as the key for the um for the holders wallet to wear the original nft is so the beauty of our protocol is that

you get to pre-define the terms of the rental as a owner of the nft we for example saw an example where um when the ape coin came out people were literally borrowing the board Apes just to claim the ape coins and then return them back resulting in millions of loss for the ape um holders so we started thinking how to protect the owners so we came up with the solution to predefine the terms of the rental so you can literally redefine I can allow um borrowers to claim our airdrop I can predefine on how long do I want my nft

to be rented out and most importantly our protocol is there to make sure that your energy gets returned at the end so abstraction in thinking it comes with a huge economy behind it which will be talking a little bit later but there is a new economy that's coming to the web free space which I personally and all of us eight of us in the team strongly believe that it's going to change an entire way how we think and how we perceive the nfts so why would you rent an nft we have a lot of utility quality projects with strong utility but again there is a need for Capital to

participate in the nft market and we are there to reduce the need for the capital for you in order for you to participate and at the same time create economy which will support the owners and create a new utility for the nft holders and of course asset utilization is at its finest we also just mentioned it but we'll be talking about that in the next slide so what are the use cases you just got interested in the nft renting you're in so probably biggest use case right now is the web free gaming why because we've seen a huge spike in demand when it comes to Gamers switching to web free

and at the same time we saw a huge play to earn Trend going on but the problem is that we have um you need to have a really expensive nft in order to make money in the game for an example let's say a thousand Euros worth of nft so most people especially in less developed countries such as Balkans or Asian markets who are passionate Gamers and who want to participate they don't have the capital upfront Capital to participate in the ecosystem at the same time there's a there's a huge Market of nft holders who have huge bags of nfts say 20 to 30 50 nfts in their wallets just collecting

the dust and why wouldn't you as a holder agree with someone okay I'm gonna give you my nft for say five bucks a day which is a huge cost reduction for the the Borrowers to in order to participate and they can go on and earn say 23 per day playing that game with the nft that they usually wouldn't be able to to get so that's the first model and the second model that we are actually implementing is I'm gonna give you my nft for free and you are gonna go put invest your time play the game use your skills and we're going to split the profit say 50

50. so I as an nft um owner I get an opportunity to turn my dust collecting collectible into a passive income generating asset while the other person is getting an opportunity to make money with no upfront cost so the nft domains for an example we are currently talking with unstoppable domains which is one of the biggest naming services in the industry and they have this the system where you can do one-time payment for the domain and it remains in your ownership for life so what if you reserved a really good domain why not utilize it why not rent it out to someone

one of the ideas the ticket thing the super interesting use case for us so for an example if you I don't know bought a skate pass for 15 days but you decided to only go for five days why not use the remaining 10 days and rent out your nft ticketing pass for someone who actually wants to use it and they don't want to pay the full price IP rights at the same time this is something that we actually spoke with Sony last year and this I think this is something um that's really interesting it's still in the early days but I think this is going to be pretty huge especially when we are seeing the board ape Community renting out and giving the IP rights to

certain companies to use their board Apes as a way to Brand themselves and do marketing so there's so many I could probably talk about use cases all day long but unfortunately um you can talk to me not unfortunately you can talk to me adverts so the new economy around it and let's talk about it so the capital is no longer a requirement to participate in in the nft ecosystem which of course given the fact that we are onboarding uh people to web free means a lot for the next onboarding babe uh when it comes to a new wave and new users so holders turn their dust collecting entities into passive income

generating asset and most importantly turning non-paying customers into paying customers in the gaming so what do I mean by that basically if you don't have Capital to start with and you start your way by renting and borrowing an nft from someone who has it and then you slowly collect the money collect the money collect the money you will eventually end up buying the NFD with the money that you earned which again turns the non-paying customers into paying ones so how it disrupts the nft industry with the new Financial tooling that we just talked about and the new economy behind

it we are bringing an entire new economy to develop free ecosystem which will again be really strong incentive by Financial incentive for the people to push them to switch from web to to web free which by my humble opinion will be one of the biggest onboarding waves we've seen so far in the gaming industry so and of course we have actual renting as the utility for the projects for an example if you have a bag of of token gated community nfts where you can only participate if you have a certain nft

why wouldn't you utilize that why wouldn't you rent out your nft to someone who's might not convinced if they want to participate if they want to fully commit to purchasing the nft and actually create the in the the passive income generating profit for yourself so this is renting actually becomes an entire utility for the nft projects so we have approximately I think nine minutes left and I wanted to see if anyone here heard about nft renting prior to this raise your hand

wow that's a lot of people so I also wanted to check how many of you know the difference between the lending and the renting are one people okay so that's the difference so um let's break it down and explain renting a little bit more so the renting the purpose of the renting is to get an nft for a specific utility rather than just putting your nft as a collateral so you can get capital for other things or Investments so that's a little bit a little difference between the collateralized and uncoateralized renting so another cool thing is and why

the uncoateralized rent nft renting is much more efficient than the collateral one is because we've seen tons of cases where people would borrow the nft where it was let's say 1 8 at price and they would put two is as a collateral but then we would see a huge Spike and say that nft is now worth five eight but you only have to eat as a collateral so most people just decided to let the original owner keep the two eat collateral and sell the nft on the market without a guarantee and basically

and resulting in the owner losing their nft so a lot of nfts here actually have um a lot of entities actually have um so to say um sentimental value to a lot of holders and you if you want to utilize that nft you actually want to get it back so this is where our protocol comes into the place and this is something that's going to guarantee that you get your nft back after a certain period of time so um I'm really I'm super excited to present this today with you and I would

love to hear any questions from your side so if there's anything um or anyone has question I am at your disposal uh yeah hello you said that you're building a kind of protocol and you're going Auto rep exists in nft and the question is like first how is it going to be compatible with um uh products which already build because they're not

taken in consideration your protocol and your smart contract and the second question would your protocol still be relevant after Mass adoption of ERC proposal 4907 which proposed like a standard foreign like what's the advantages of your protocol then compared to the CRC standard okay so basically we don't have a specific standard like as long as it's an ERC token we are fully like it doesn't matter what standard it is we can we can accept it so um I didn't really catch the first question so okay can you Can you capture that can you repeat that please uh yeah

for example you said that you're gonna to wrap existing nfts and if you already have some infrastructure some smart contracts that interact with smart contract which already deployed smart contract they're not taken into consideration new smart contracts for example your protocols like so how to solve this compatibility backward compatibility issue um so so basically the question is what's the incentive for the project to use if I'm getting it right uh yeah so the assumption is that project will do kind of integration with your protocol yeah am I correct um I'm not sure I understand it sorry

um okay I'll try to so yeah is there are you trying to build a kind of standard which allows to add some compatibility with your competitors or it's a kind of unique protocol and the specialized only and this is specific to your project so so we actually the initial idea was to build our own Marketplace and have people because we we've seen projects coming to us and asking you know like are we going to get listed on your Marketplace AKA are we going to get Market exposure so we kind of started thinking in a way how to make it a bit

more friendly towards the projects you decide to integrate us and we actually made an SD case Rush API kits which literally make our integration integration of our protocol available within one day and we also offer to them the opportunity to have their own custom nft renting Marketplace of their own on their website or on the in the game itself just because we found that the actual user experience it's much easier to say you're playing a game and you get to an area where you need an nft to unlock a certain map a part of the map so rather than quitting the game opening the browser going to our website renting

an entity getting to the game itself we decided okay it's actually much easier to have your own renting Marketplace present in the game itself available for the user in literally like two or three clicks so we also started thinking okay like we have this entire like um ecosystem that we have and we understand that technology might not be the only thing that incentivizes projects to integrate us even though we are cutting heavy uh time when it comes to development so we started designing this ecosystem which actually where we actually become an aggregator on our Marketplace and basically projects that do integrate this and they get they list

their the nfts on their custom marketplaces they also get shown on our marketplaces well that's how we are basically allowing other proc projects to capture additional Market exposure so I'm not sure if I answered your question we'll talk I like being Beyond later and I've been more than glad to talk to you is there any more questions I have a question actually Milos thank you um so I was I was wondering if you have a take on the term nft itself especially as you're building sort of the future and innovating and what's going on with nfts do you think non-fungible token is an apt term do you think that

um another term might replace it do you think that you know there might be kind of different terminology that branches out from nft over over time so let me just get there because there's a there's an echo with the sound and it's like really hard to hear sorry oh just a sec um I was wondering if you what your take was on the term nft non-fungible token especially as you're like innovating in the space as you know different forms of nfts um are created and you know people are thinking about this a lot and you know a lot of people think nfts will stay around just in a very different format from what they have been over the years so if you think it's like a good term an apt term for what the state of nfts are

now or do you do you think about that at all so I think that the entire oh let me get back there um no more secrets no more secrets so I think that the NFD space guide has kind of started out with Collectibles and people actually building Community around it but I think that somewhere on the way we found that we can do much much more with it so I think that like we've been talking to a lot of energy projects and a lot of nft people and there's so many crazy things happening uh there's literally like the potential to like we're doing to unlock new economies with it so I think that we are past the point where the nfts are just

you know like jpegs um which you can write quick you know um so I think that technology is still super early on but the new the early adopters like me and the people in this room Are Gonna brainstorm the new ways I think that what we just did is just and the sandbox crew of course who are leading the way um I think we just scratched the surface and there's like so many things that we can actually uh do with it so um I yeah this is just the beginning and I'm really excited to see where the future of the nft space takes us yeah awesome

that's it we're out of time um thank you all once again for listening and thank you all for being in Montenegro [Music]