Decentraland, a metaverse platform, recently announced a new feature that turns its customers who own virtual land into landlords. Owners can now formally rent out their properties to other network users for a set period. Users can now generate passive income through their metaverse assets.
Through the use of Ethereum transactions on-chain and a server run by the Decentraland Foundation off-chain, the new system will enable both landowners and tenants to rent out land in a secure and decentralized manner.
All land rents are paid in Decentraland’s native token (MANA), and the total amount is paid upfront. The site provided examples of DJs renting space for a club or party and virtual institutions renting land to create campuses.
The smart contracts on the 3D virtual platform were created by two experienced blockchain developers, Ari Meilich and Esteban Ordano.In addition to the ERC-20 token MANA, the ERC-721 tokens ESTATE, which stands for meeting lands, and LAND, which is a nonfungible ERC-721 token, are available in Decentraland.
Landlords in Decentraland are subject to the same regulations as those who rent out physical properties: they are not permitted to sell or accept offers to buy the property until the term of the rental agreement expires.
According to Decentraland’s rental notification, prospective tenants can view all available lands in the marketplace’s Land area for rent or sale.
Tenants must first choose to let the renting smart contract manage their MANA before deciding on the length of the rent or making payment for the land.
The tenant receives the Operator Permission after payment and approval of the LAND rental, which the Landowner may reclaim when the expiration date approaches.
This development comes at a time when the metaverse is evolving and gaining traction both within and outside of the Web3 sector.
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