Blockchain Gaming: Renting In-Game Assets Could Become the Norm, Says Polemos Co-Founder

Introduction

Richard McLaren, co-founder of gaming infrastructure service Polemos, envisions a future where players can rent in-game items via blockchain. In an interview with Cointelegraph, McLaren discussed a new partnership between Polemos and fantasy battle game Illuvium. The collaboration aims to break down barriers for players looking to get started on Illuvium's platform by offering a more accessible entry point.

The Benefits of Renting NFTs

Blockchain games often require significant capital upfront, which can deter new players. McLaren believes that renting non-fungible tokens (NFTs) for a few days allows newbies to try out games more easily. McLaren also emphasized that this feature increases sales and attracts more players, ultimately boosting retention and expanding the player base.

Polemos' Non-Collateralized NFT Lending Protocol

Polemos' lending protocol, known as "The Armory," utilizes a pay-up-front model that eliminates the need for collateral. McLaren explained that this approach opens up non-collateralized lending to a wider audience who may not have the capital to secure an asset. The technology behind The Armory ensures that rented assets cannot be damaged, further increasing accessibility.

The Potential Market Size

While game asset NFT lending may seem niche, McLaren predicts that it could make up a substantial portion of the approximately $2.3 billion invested in NFT gaming in 2023. According to him, rental fees serve as a marketing expense for game studios and provide a reason for players to engage with their games. McLaren also noted that major studios are exploring ownership mechanics, and renting assets can enhance player investment and engagement.

The Benefits for Players and Game Studios

The rental model offers benefits to both players and game studios. Long-time players with extensive in-game asset collections can earn passive income from unused assets. For game studios, third-party lending services like Polemos provide a decentralized and sustainable solution that does not rely on the studio's continued existence. McLaren emphasized that player ownership and decentralized infrastructure are key aspects of the appeal of NFTs and lending marketplaces.

Polemos' Future Plans

Polemos is currently closing its strategic pre-sale for a native token set to launch in mid-2024. McLaren did not provide additional details about the token but hinted at its importance in the company's future plans.