Imagine a future where gamers can rent in-game items through blockchain technology, enabling them to conquer challenging levels or try out new games by borrowing NFTs. This vision is what Richard McLaren, co-founder of Polemos, aspires to make commonplace. He envisions a gaming economy where players can lease their virtual assets for a fee.
In a conversation with Cointelegraph, McLaren revealed Polemos’ latest collaboration with the fantasy battle game Illuvium. This partnership, he believes, will lower the barriers for newcomers eager to engage with Illuvium’s platform.
“This creates a financially more accessible entry point for players and broadens the potential player base willing to engage in these games,” McLaren commented. A significant hurdle in blockchain gaming is the substantial initial investment required from players. McLaren suggests that renting an NFT for a short period offers a more approachable way for newcomers to test the waters.
“We anticipate this will not only boost sales but also enhance player attraction, as it allows them to explore. For players who have amassed large inventories by dedicating time to your game, this gives them a reason to remain, thereby improving both player retention and the overall player base.”
Polemos’ innovative non-collateralized NFT lending protocol, named “The Armory,” adopts a pay-upfront approach, eliminating the need for players to provide collateral when renting in-game assets. While game asset NFT lending may seem like a specialized market, McLaren forecasts that it could account for 30% to 40% of the approximately $2.3 billion invested in NFT gaming in 2023.
“Rental essentially forms part of a game studio’s marketing budget. It’s an expense paid by players, not directly to the studio unless they own the assets, but to other asset holders, incentivizing gameplay,” he explained. “With major IPs and studios exploring ownership models — if not blockchain, then ownership as a gameplay element — renting enhances the engagement and authenticity for players already invested in a game.”
This rental model also provides an opportunity for veteran players and game studios with extensive in-game assets to generate income from items they aren’t using. When asked why game studios would opt for Polemos’ services over creating their own exclusive lending platforms, McLaren highlighted the advantages of decentralized public infrastructure.
“The whole idea of player ownership hinges on public infrastructure. Its appeal lies in not being solely dependent on the longevity of the game studio,” McLaren stated. “Therefore, the rationale for a third-party lending marketplace aligns closely with the general concept of NFTs.”
McLaren also mentioned that Polemos is in the final stages of its strategic pre-sale for a native token, set to launch in mid-2024.
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