There are also NFT staking platforms designed to enable NFT holders and non-holders to make the most of these digital assets.
In this article we’ll look at several promising NFT staking opportunities and how you can earn rewards via NFTs.
- What is NFT staking?
- How does NFT staking work?
- What is staking nfts
- 4) Percentage of total NFTs staked
- The best NFT staking platforms
- NFT staking cons
- NFT Staking frequently asked questions (FAQ)
- How much does it cost to stake NFT?
- Where to stake NFTs
- Zookeeper (ZOO)
- How does NFT staking function work and what does it entail?
- Is NFT staking profitable?
- 1) Annual NFT staking yield/APY
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What is NFT staking?
NFT staking refers to an NFT owner locking up their asset for a certain period of time, earning passive income in the form of cryptocurrency while doing so.
Some collections allow users to deposit their NFT for an indefinite lockup period, while others have strict limits for how long NFTs must be staked before unstaking.
There are also dedicated, collection-agnostic platforms that reward NFT collectors with tokens in exchange for staking NFTs from multiple projects and blockchains.
How does NFT staking work?
Staking is a key feature of many different blockchains.
What is staking nfts
Participating projects simply cede a small percentage of transaction fees in order to enable staking for their collection.
Doge Capital NFTs are available on Magic Eden for a current floor price of 2.35 Solana (~$223).
The current rate of five $DAWG per day at $0.03 per token yields $.15 per day or $54 per year.
BabyApes is a collection of 5,000 pixelated baby ape avatars created on the Solana blockchain. The project allows holders to stake their NFTs and the subsequent token rewards ($OOGI).
BabyApes is a more affordable collection, with a current floor price of 0.57 Solana (~$52) on NFT marketplaces like Magic Eden.
Staking a single BabyApe earns users 3,000 $OOGI coins per day, or about $0.24.
While NFT staking is still in its infancy in comparison to other DeFi yield farming techniques, it functions similarly. You may earn incentives based on the annual percentage yield (APY), the staking period, and the quantity of NFTs staked by locking up NFTs on a platform.
Investors and collectors love to HODL and speculate on NFTs because of their unique character.
Staking NFTs provides them with a new way to monetize their assets, which might entice more individuals to join and increase market demand for stakable NFTs.
Staking an NFT is similar to staking bitcoin (BTC) or ether (ETH) (ETH). You’ll just need a bitcoin wallet that supports NFTs.
Not every NFT, however, may be staked for prizes.
This lets NFT users earn a passive income while still upholding ownership of their NFTs.
While NFT staking is still in its early stages related to other DeFi yield farming ideas, the effort in a similar way. By holding up NFTs on a platform, you can obtain rewards depending on the Annual Percentage Yield (APY), the staking period, and the number of NFTs staked.
Due to the unique landscape of NFTs, investors and collectors mostly prefer HODL and wonder.
NFT staking unlocks a huge opportunity for them to monetize their assets, which can potentially appeal to more people to join and drive up the market demand for stackable NFTs.
Staking an NFT is similar to staking your bitcoin (BTC) or Ethereum (ETH). All you require is a Cryptocurrency wallet link with NFTs.
However, not all NFT can be staked to earn rewards.
4) Percentage of total NFTs staked
If you’re hesitant to stake an eligible NFT, you can take a look at the project’s website to see the percentage of all NFTs that are staked. A higher number will indicate a healthy signal that NFT owners are dedicated to holding for the long run.
Although not a guarantee, there is a lower chance of a mass sell and price dump if a large percentage of total NFTs are staked—especially if there is a definite lockup period.
The best NFT staking platforms
If you own an NFT eligible for staking, you can check the official collection website for complete instructions on how to stake it.
There are also collection-agnostic platforms built to allow users to stake NFTs from multiple collections.
When they are utilized to create vTokens, they may become fragments of the decentralized finance landscape.
Features of NFT Staking
- Effortlessly issue of NFTs and trade at low cost
- Create unique labeling for issuing, selling, and trading NFTs
- Use customizable plug-ins to advertise NFT products and brands
- Review copyright replicates, and similar tokens with the NFTify AI Services
NFT staking lets users make an additional income from their unique NFT collections. At the same time, NFT staking is making new use cases for NFTs that were never discovered before.
It might be too early to tell, but we will certainly perceive new NFT staking opportunities being created.
As in many of the NFT collections outlined above, native cryptocurrency utility tokens carry additional perks such as voting power and governance in the future direction of the project.
NFT staking cons
While your NFT is staked there are always risks of rugging. This occurs if and when the founders or developers leave the project.
Sometimes they leave it in the hands of the community, while other projects disappear completely, leaving holders with worthless NFTs.
While staked, your NFT could see a significant rise or drop in value. If you’re staking an NFT that has a long lockup period then you’ll be unable to sell for quite some time.
However, if holding long-term has always been your intention, you can worry less about temporary peaks and dips as you continue earning interest on your investment.
NFT Staking frequently asked questions (FAQ)
How much does it cost to stake NFT?
When staking your NFT you’ll need to account for any network or transaction fees, which will vary by blockchain. For example, Ethereum NFTs will carry higher gas fees than networks like Solana.
On Ethereum, the transaction costs depend on how busy the network is at any given point.
This could range anywhere from a few dollars to several thousand.
You can check current transaction fees at Etherscan’s Ethereum Gas Tracker.
On other blockchains like Solana, however, transaction fees are generally negligible, usually as low as fractions of a cent.
Because the criteria for various projects varied, it’s best to double-check with your selected projects before purchasing NFTs.
Where to stake NFTs
The majority of NFT staking chances come from play-to-earn games as of December 2021. Two examples are Zookeeper and MOBOX. Binance Fan Token Platform and Doge Capital, for example, are building NFT staking capabilities on their platforms.
Zookeeper is a yield farming DApp that is gamified.
It offers NFT staking in several mascot-themed liquidity pools. Dual farming is allowed in all liquidity pools in Zookeeper, which means you may earn both the utility token ZOO and the WanSwap Liquidity Provider (WASP) token as a reward.
You may opt to lock your tokens for a certain length of time, up to 180 days, to maximize your APY rewards.
NFTs) as digital representations of art and collectibles that have the potential to increase in value over time. Some NFT initiatives provide a portion of their profits to the NFT community.
Royalties and secondary market transactions are the most common sources of these funds.
However, as the NFT industry expands, developers, artists, and collectors are looking for new ways to put their NFT collections to use. The usage of NFTs as utility tokens in staking systems is one of the most recent use cases.
NFT collectors may, for example, stake their NFTs to increase their game character’s powers and gain additional prizes in various gaming metaverses.
How does NFT staking function work and what does it entail?
NFT staking, as the name implies, is the locking up of NFTs on a platform or protocol in exchange for staking incentives and other benefits.
This token may have additional perks such as voting, governance, and general DAO benefits. Some NFT collections will even let you stake these earned tokens, allowing users to compound returns!
Is NFT staking profitable?
NFT staking can be a worthwhile endeavor given the right conditions.
Before staking an NFT there are several factors you should consider.
1) Annual NFT staking yield/APY
What are the expected returns for staking of the project? Some projects may promise lofty interest rates. While this may be tempting initially, you should be cautious of returns that appear too good to be true.
These rates can fluctuate drastically and often won’t hold up for very long.
Some projects will increase APY rewards for staking multiple NFTs or NFTs with a higher rarity score.
Here are some of the top staking platforms:
WhenStaking is a staking platform for NFTs on Onessus, the DApp development studio that has created NFT play-to-earn games such as HodlGod and the upcoming NiftyVille.
NFT assets from these games can be staked on WhenStaking to earn passive income in the form of $VOID, the native token for Onessus that powers current and future projects on the platform. And for fans of popular blockchain games on the WAX blockchain, both Onesssus and WhenStaking are integrated with WAX Cloud Wallet.
Rather than just a simple APY projection, rewards on WhenStaking vary by NFT rarity, collection value, and the platform’s unique level system. On WhenStaking, users can earn more rewards over time, with NFTs leveling up and increasing APY the longer they are staked.