Can I make passive income with NFT Worlds?
If you own an NFT World, there are two ways to make passive income. You can stake your NFT World to earn WRLD tokens at regular intervals. Staking refers to locking up the NFT. The amount of crypto tokens you earn is based on the rarity of your NFT World.
A staked NFT World can also be made available for rent. As the world owner, you can set a monthly price, as well as the minimum and maximum number of months the world is available for rent. If you rent your NFT World, you earn WRLD tokens from staking it and from the renter.
When your NFT World is locked into an active rental agreement, you can't access it or unstake it. The agreement can only be terminated when the rental term is fulfilled or if the renter defaults on the monthly payment.
Unique risks
The fact that NFT Worlds is built on Minecraft is a huge part of its appeal, but it's also the project's biggest risk. There's always the possibility that Microsoft takes legal action to shut down NFT Worlds.
NFT Worlds' co-founders, ArkDev and Temptranquil, say they're in contact with Microsoft representatives from the intellectual property enforcement team. They claim they work with these representatives to ensure that they don't violate Minecraft's End User License Agreement.
However, that agreement states that no one can "make commercial use of anything we've made" or "try to make money from anything we've made" unless the Minecraft team specifically agrees to it. It doesn't appear NFT Worlds has that type of deal in place. Temptranquil has said that Microsoft is watching from the sidelines, but that the project doesn't have a "formal green light."
That doesn't exactly inspire confidence, especially if you're debating whether you should spend thousands of dollars on one of these virtual worlds. One could easily argue that NFT Worlds is in violation of Minecraft's agreement given that people are making money from these Minecraft-based worlds.
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