IIf you’re reading this, you probably know that investors can buy NFTs hoping they will appreciate in value and then sell them for a profit. You probably also know that artists and other creators use them to certify the authenticity and ownership of their work.
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But NFTs are also the foundation of the metaverse, and that’s where the most exciting opportunities for monetization arise. The metaverse itself is still in the making, so it’s not too late to jump in as an NFT-based ground floor landowner, landlord, lender, contractor, developer, or promoter. Let’s examine the value of this.
Mark Twain once said, “Buy land. They can’t make it anymore.” Twain could not have predicted the metaverse, but his wisdom still endures.
As in the physical world, owning land means wealth in the digital realm. For example, properties in The Sandbox Metaverse are referred to as LANDs.
When you buy one you don’t get a certificate, you get an NFT that records your ownership of this little piece of the digital world. According to Medium, each LAND is an NFT on the Ethereum blockchain, which represents a 96×96 meter parcel on The Sandbox’s map.
Just like in Twain’s tidbit, the land of metaverse is finite. The map that makes up the metaverse of The Sandbox will never contain more than 166,464 LANDS.
That’s 166,464 NFTs, each representing exclusive ownership of the Metaverse equivalent of a property.
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Why own land if not to develop it?
LANDs are the building blocks of The Sandbox Metaverse. If you acquire enough LAND, you can combine them into estates, each endowed with a variety of potentially income-generating assets.
Whether you own individual LANDS or entire estates, you can build on them with User Generated Content (UGC). This includes entity assets such as trees, bridges, or animals, and equipment assets such as weapons, gear, or other accessories that avatars wear or can wear.
Just like land, NFTs denote ownership of assets. To buy or sell them, buy or sell the corresponding NFTs. Once you own a portion of the metaverse filled with assets, you can monetize your holdings by paying people to visit your LAND, attend your amenities or events, or play games you host.
You could also make money by selling your LAND at a premium after developing and customizing it, much like the Metaverse’s version of flipping properties.
Of course, that’s just an overview of life as an NFT kingpin in The Sandbox, which is just one of several Metaverse platforms. Each has their own land units, assets, and regulations, but they all have one thing in common – NFTs are the foundation of the Metaverse economy.
Earn passive income by renting out your NFTs to gamers in need
Play-to-Earn (P2E) players create or modify the assets in the Metaverse to earn valuable NFTs as rewards. For this reason, these assets are referred to as user-generated content. The problem is that in order to make money, P2E players have to pay big bucks up front – sometimes thousands of dollars – to buy the NFTs needed to meet the game’s minimum investment requirements.
Many of them just don’t have the money to start.
Once you’ve established yourself as a landowner in the metaverse, you can rent out your NFTs to these eager but underfunded players to buy into the game. In return, you receive a cut in your future earnings – and you never relinquish ownership of your NFTs.
Axie Infinity players in the Philippines started the NFT rental trend when the game went gangster in 2021. In the Metaverse, these rents are called “Grants,” and “Scholars” can build and upgrade assets on lots you own – increasing the value of your Metaverse property – while paying you a percentage of their earnings for the rent.
Emerging opportunities to make NFTs pay in the Metaverse
According to CoinDesk, some exciting NFT trends are gaining traction in the metaverse, including:
- Yield-generating NFTs: Generate passive income by issuing NFTs as governance tokens that give holders voting rights in the development of blockchain projects.
- Residual Dividends: NFT owners can earn royalties on their holdings. For example, an NFT representing a digital racetrack in the metaverse could earn its owner a percentage of each race that occurs on it.
- Social events and private celebrations: Rapper and NFT diehard Snoop Dogg sold NFTs as passes to a private party he was throwing at The Sandbox Metaverse. Only 650 of the 1,000 NFTs he issued were made available on The Sandbox’s marketplace, and one of them contained a secret prize. Snoop himself would appear in the LAND of the person with the winning NFT, who would then presumably be able to monetize Snoop’s appearance on his or her own digital property.
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This article originally appeared on GOBankingRates.com: How NFTs Create Value in the Metaverse
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