- Decentraland, one of the leading metaverse platforms in the Web3 space, has launched a new renting system.
- The renting feature utilizes a combination of on-chain and off-chain signatures. This allows LAND owners and tenants to rent LAND in a supposedly trustless and secure way.
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Attention LAND ownersYou can now rent out your LANDs right in Decentraland’s Marketplace.Head on over to ‘My Assets’ in the Marketplace and put your LANDs up for rent today!All the details: https://t.co/rzvvNUSeErWhy rentals for LAND? pic.twitter.com/P3QH3Nh3UE— Decentraland (@decentraland) December 5, 2022
Rent’s Due in the Metaverse
In Decentraland’s technical documentation, the new renting system uses a combination of signatures stored in a server handled by the Decentraland Foundation and Ethereum transaction.
According to the technical documentation, the rental smart contract heavily relies on off-chain signatures. Off-chain signatures allow LAND owners to list their LANDs for rent without paying transaction costs.
By signing a listing, the smart contract can then verify a signer created a listing. This ensures a safe and decentralized mechanism for renting LAND.
Starting today, LAND owners can list their LAND (Parcels or Estates) for rent in the Decentraland Marketplace. Here’s how:
- LAND owners approve the Rent Smart Contract to use the LAND on their behalf in the ‘my assets’ tab.
- After approval, LAND owners can set a rental price per day in MANA, including the days they want tenants to rent it. The price per day times the number of days the renter wants to rent is what the tenant has to pay upfront and, in total, for that rent.
- LAND owners can also set an expiration date for the listing, removing the listing if it wasn’t rented until a select date. The smart contract will reject the expired signature, so no one can rent it for an expired listing price and duration.
- LAND owners can edit the conditions of the listing anytime before anyone rents it.
- After the rent, owners can list their LAND for rent again or claim it back. To reclaim their LAND, owners must send a transaction confirming the transfer of operator permissions from the tenant to the owner, including the gas fees.
- When a tenant rents LAND, the LAND owner can not sell it until they claim it back, nor will any bids be entertained by potential buyers for the duration of the rental period.
- Lastly, LAND owners will claim all voting power over their LAND.
On the Flipside
- This is not the first time Decentraland’s LAND has been put up for rent. Double Protocol, Decentraland Grantees, previously launched an on-chain LAND rental system that allowed LAND owners to rent out their digital real estate to tenants.
- A LAND parcel in Decentraland costs, on average, $3,000. Rent listings cost as low as 14 MANA and as high as 3,000 MANA per day.
Why You Should Care
Digital real estate has been one of the most successful prospects of the Web3 space in recent years. Decentraland has been vocal in its efforts to legitimize metaverse platforms and digital real estate by holding exclusive and exciting events for users. The new renting feature will undoubtedly attract interest in the platform, making it more accessible and affordable for users.
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