Lendroid is introducing metatokens as a new layer of tokenization by allowing token-holders to tokenize their digital assets. Through these so-called metatokens the owner of an asset can give another user limited access to change for example a layer in a piece of art or temporarily access to a virtual location.
Metatokens allow a token-holder to tokenize one attribute of digital assets, and then create transferable NFTs out of it. The concept already exists through a system called Rightshare, which is a way for landowners in Cryptovoxels to rent out there parcel.
The difference with NFT shards, is that shards represent ownership. Metatokens have nothing to do with ownership, but with access. The owner of the NFT remains the owner, but these metatokens give certain access to third-parties.
Two types of metatokens
Lendroid identified two types of metatokens: encumbered and unencumbered ones. One needs to be frozen into a smart contract, and the other doesn’t. Lendroid explains it best themselves:
- Encumbered Metatokens – Conditional, in other words. These are metatokens created by ‘freezing’ the ownership of the NFT in a smart contract. For instance, truly trustless leasing of an NFT. As long as you have paid for access to an NFT, the owner should not be able to revoke your access until the expiry period. At the same time, she will always be the owner, that won’t change either. And when the lease expires, the lessee loses access to the NFT.
- Unencumbered Metatokens – No need to freeze or escrow the base NFT. Off the cuff, a timed collaboration, tickets that restrict access to just those who hold them, voting tokens to pick a mayor – say Conlan for Gangnam.
Lendroid suggests that NFT holders aren’t the only ones to use this system. In addition app developers could also implement it as an extra layer. This would for example allow users to share their rare in-game weapon for the weekend to another user. Thanks to smart contracts the system makes sure the real owner always has ownership.
Lending NFTs nothing new
Lending non-fungible tokens is nothing new. There are multiple platforms that allow such a concept, take Lend721 for example. However, these platforms are different because items as a whole or locked into a smart contract. Metatokens allow owners to allow share a small part of their digital asset with others, like for example one layer in a multi-layered piece of art.
At the same time a platform like Niftex is tokenizing ownership. They put a non-fungible token into a smart contract and then sell off 1000 pieces of ownership. That way ownership is shared among multiple users. For example, at the moment I own a share of a mystic Axie and a zombie Cryptopunk.