Staking & Rent for NFT World holders
Details on NFT Worlds staking rewards and world renting
Staking of NFT Worlds provides world owners a way to lock up supply and earn $WRLD token while further benefitting the overall ecosystem of NFT Worlds.
Additionally, world owners can stake their world and while staked make it available for rent.
Owners set their monthly price to rent their staked NFT World in $WRLD token. Renting is optional for staked worlds.
As the floor price of NFT Worlds rises, we believe this rental system is key to allow talented builders and developers to create awesome NFT World experiences that earn the builders/developers $WRLD from what they build. This allows talented individuals and teams to have access to creating great content for the ecosystem without being priced out in the event they cannot afford to purchase an NFT World because of the floor price.
Additionally, this gives a way for world owners to put their worlds to work that they otherwise did not have intention to build on or may not presently be using.
Staking an NFT World unlocks the following.
- Generates $WRLD token on an interval basis just for being staked. World owners may claim their $WRLD token earned from staking at any time.
- A staked world may optionally be set available for rent. The world owner can set the monthly price, as well as the min/max months available for rent. Rental management will be available through the World Manager dApp.
The amount of $WRLD earned on a daily basis for a staked NFT World is based on the following formula.
Each world will have a staking weight that is based on its rarity. The staking weight is. For a rank 1 world its weight is 40000, and for a rank 10000 world its weight is 10003. The average weight is 25000.
The staking reward is calculated as
where at any point in time is the sum of all weights of worlds staked by user, is the sum of all weights of all staked worlds, is the rate of reward emission for all users.
There are 1,750,000,000 total $WRLD tokens locked up for distribution as staking rewards over a target timeline of 5 years. $WRLD token distributions from this amount relative to the timeline are distributed on a pro rata basis against total NFT Worlds staked. The token amounts distributed will always be based on the provided formula. If fewer worlds are staked, you will earn more $WRLD relative to the total worlds staked.
Once staking reserves have been depleted, we believe the NFT Worlds ecosystem will be in a position where renting an NFT World via the rental system tied to staking is a continued value add for keeping a world staked.
Please note: Worlds that are staked are unable to be listed for sale, they need to be unstaked from the staking/renting contract (returned to the owner's wallet) before the owner could then list the world for sale.
NFT Worlds that have been staked can be enabled for renting by the owner.
All renting logic and conditions are managed by the staking smart contract.
Once a world has been rented, it earns the NFT World's owner additional $WRLD from the monthly fee paid by the renter, as well as the owner's staking rewards.
World owners are able to control the following details related to their rental offering.
- The monthly price in $WRLD required to rent their world.
- The deposit required to rent the world. If a tenant defaults before the term ends, the world owner keeps the deposit.
- The minimum and maximum rental term lengths available in months (interval may change to weeks in the future).
Rental Example
For example, a world owner could stake their world and set it available for rent for a minimum of 1 month and a maximum of 12 months. The owner sets a price of 10,000 $WRLD per month to rent and a deposit of 5,000 $WRLD.
The renter decides they want to rent this world through the NFT Worlds rental dApp (to be released). The renter confirms the agreement with a transaction to the staking/renting smart contract and opts for a 6 month term. They pay the first months rent of 10,000 $WRLD and the 5,000 $WRLD deposit upfront to secure the rental and will automatically have 10,000 $WRLD transferred from their wallet to the original world owners wallet on a monthly basis until the term has ended or until the renter defaults. If the renter defaults, the rental is terminated and the owner may decide to list the world for rent again, or not.
When a staked NFT World is locked into an active rental it cannot be unstaked or accessed by the world owner. Additionally an active rental agreement cannot be terminated by the world owner. The rental term & renter may only be terminated under 2 conditions.
- 1.The rental term is fulfilled.
- 2.The renter defaults on a monthly payment, in which case the smart contract will automatically terminate the rental and unlock the world for the owner.
Upon one of these 2 conditions occurring, the NFT World will be delisted from being available for rent. The world owner can then choose to relist their world for rent and choose to change their terms if they decide to.
Renters have full access to an NFT World they're renting as if they owned it.
The world is never transferred out of the staking/renting smart contract. The smart contract manages permissions passed on to the renter.
Renters may sync updates to the NFT World they are renting, host it for multiplayer and get full access to all developmental and NFT Worlds ecosystem features that a regular world owner gets.
This allows renters to build worlds and games and offer them up to the NFT Worlds player-base.
You can think of this system similarly to commercial real estate. The world owner is the landlord. The renter rents the building (world) to launch their business in (their game/world they make) and then are able to earn $WRLD token from in-game players interacting with the world they made. They could earn $WRLD token through players buying in-game items from the world using their $WRLD token, or many other limitless possibilities depending on how they want to build $WRLD integrations for the world they're renting, which the renter earns $WRLD income.
Please note, the staking/rental contract manages ownership. Renters have no control over transfers or anything that could jeopardize ownership control of a staked/rented NFT World.
After a rental term ends, the world is reset to its original world state so the world owner does not get access to any of the world developed by the renter or the proprietary game systems the renter may have made.
Additionally, if a term ends and the renter wants to renew their rental agreement they can negotiate with the world owner and the world owner can create a wallet specific rental agreement that only the renter wallet can accept, preventing other parties from sniping the world if it were to be listed publicly.
If a term ends and the renter does not want a new rental term with the world owner because of pricing or other reasons, systems will be in place to allow transferral of the renter's world changes and systems to another NFT World without disrupting what they've built.