The Double protocol has overseen the creation and implementation of EIP-4907, which paves the way for NFT leasing. This new standard is backwards compatible with ERC721 and allows the right to use an NFT to be separated from its ownership
EIP-4907 makes it easier to lease NFTs
Thanks to Ethereum Improvement Proposal number 4,907 (EIP-4907), it is now possible to lease non-fungible tokens (NFTs). This technical innovation gives birth to a new standard of NFTs: ERC4907 tokens.
This is in fact a backwards compatible extension of the original NFT standard, namely ERC721 tokens. This update was created and supported by the Double :
protocol.
We are stoked to announce that EIP-4907 proposed by the Double team has updated its status to final, becoming 1 of the 30 Ethereum token standards.
ERC-4907 will greatly reduce the integration cost of utility NFT rentals for gaming, metaverse, etc. https://t.co/gMOwgKVdI1
– Double Protocol – NFT Rentals Made Easy (@DoubleProtocol) June 29, 2022
Double is already enabling the leasing of NFT, for the Ethereum Name Service (ENS) domain name protocol, the Decentraland (MANA) metaverse as well as the Warena (RENA) blockchain set.
How it works in practice
The interest of the EIP-4907 lies in the dissociation of the ownership of an NFT from the rights to use it. In other words, this new functionality allows to delegate, during a given period, certain rights granted by the NFT. More concretely, it is for example possible to rent the ground of a metaverse to create an ephemeral event.
Everything is set in advance, including the price of the rental, its duration and the rights it confers. This brings greater flexibility to the market. It is no longer necessary to spend hundreds or even thousands of dollars to play your favourite blockchain game.
This can be translated in other ways. One could imagine the owner of a Bored Ape Yatch Club (BAYC) NFT renting it out, to allow someone else to attend a community event. In this way, they retain ownership of their asset, but can generate an additional return by temporarily monetising it.
While price is sometimes a major barrier to entry into the world of NFTs, this novelty provides a huge breakthrough. Moreover, thanks to the blockchain, the right of ownership is not questioned. It is innovations such as these that will allow us to move towards real democratization among the general public.
