Earning a passive income used to be just a pipe dream for most people. In the past, only rich people had access to passive income through banks, as the interest rates in saving accounts were considerably high. Those days are gone now, and more and more people are looking into creative and ingenious ways to make some extra money quickly.
Cryptocurrencies introduced the concept of staking by offering crypto rewards to those users that would lock their crypto tokens in a cryptocurrency wallet for a predetermined period of time. When the staking period would end, they would earn rewards.
If you want to refresh your memory on how crypto staking works and how to earn passive income by putting your tokens to work for you, read our dedicated article.
Since staking was a huge success among crypto enthusiasts, NFT staking also emerged as a way for NFT holders to benefit from the same staking system.
Since there are so many NFT projects and phenomenal play-to-earn crypto games that reward users with NFT collectibles, we recognized the need for an NFT staking guide for all our NFT collectors out there.
Let's not dilly-dally any longer and explore the wonders of NFT staking!
NFT staking? What is that?
This explanation will be a breeze if you are familiar with crypto staking. NFT staking is a new form of making money by locking your NFT tokens in a smart contract. You are simply putting your NFT collection to work for you on the blockchain.
Tokens, gear up! It's time to make mommy or daddy some money!
As you know, NFTs can be all sorts of digital assets, from photos like the Bored Ape Yacht Club NFT project to videos, music, or in-game items.
NFT staking implies that you lock your tokens to a staking platform or protocol. At the end of the staking period, the staking program rewards users with crypto or new NFTs. It's the latest way to generate passive income without breaking a sweat!
Think about DeFi yield farming, and you'll realize the two processes are similar. In yield farming, cryptocurrencies are deployed to liquidity providers in exchange for earning rewards from interest or transaction costs incurred by other users.
How does NFT staking work?
NFT staking works the same way staking cryptocurrencies does. NFTs are tokenized assets that can be deployed on NFT staking platforms where they are kept safe. The process is made possible by smart contracts on the appropriate blockchain protocol.
The first thing you'll need is a crypto wallet that works with the NFTs you want to stake. Connect the wallet to the staking platform so you can send your NFT collections to the platform and start staking.
NFT owners should also know that not every NFT can be staked, just like not just any crypto token can be staked either. Currently, most NFT staking opportunities are in the play-to-earn gaming sector, with games like Wolf Game, Splinterlands, Decentraland, or The Sandbox having this feature available for their long-term NFT holders.
Other staking platforms from the crypto and blockchain space lock up NFTs in a DAO (decentralized autonomous organization) protocol. When you lock NFTs in a DAO, you get voting power and the chance to participate in the platform's governance.
NFT staking rewards
Staking rewards can vary depending on what type of token the NFT users have, as well as the NFT staking platforms they use. Most platforms that you can use to stake NFTs, have a periodic reward system, weekly or even daily. Normally these rewards are paid in the plaform's native cryptocurrency/ utility token. You can trade these reward tokens and convert them to other crypto coins or even fiat currency.
Users can get NFTs from various crypto projects and lock them in a DAO pool, or an NFT staking pool. These liquidity pools allow them to gain governance rights within the platform, as a reward for the liquidity supplied.
As you already know, most non-fungible tokens that you can find in an NFT marketplace belong to all kind of play-to-earn games, but there arte also music NFTs or art NFTs, etc.
Earning passive income by staking NFTs
In a world where everyone's looking for new ways to generate income as fast as possible and as easy as posssible too, NFT staking represents an outstanding solution to earn passive income with blockchain technology.
Of course, you need to have an initial investment before you can stake the tokens and earn rewards. You can eran free NFTs by playing blockchain games, and some of the best NFT collections pertain to this sector. The trick with these digital assets is that the value and interest in them is strongly linked to the popularity of the game itself. If people loose interest in the game, the NFT value will plummet. If game popularity skyrockets, so does the value of the native currency and of the NFTs.
The best NFT staking platforms
You know where to buy NFTs and how to earn them from games. Let's also see some of the most popular staking platforms where you can get your passive income gig going:
Binance NFT PowerStation
If you're into Binance Fan Tokens, this is the place where you can earn more rewards by supporting your favorite sports teams. Binance is one of the largest cryptocurrency exchanges that offer its users NFT staking, among other services.
Binance Fan Tokens are utility tokens associated with a specific sports team. As a token holder, you benefit from exclusive privileges like priority ticket sales or being included in the decision-making process of the sports club.
Copyright © Binance NFT PowerStation
MOBOX is a blockchain game with its own metaverse called MOMOverse, where you can find several NFTs. The game is built on the Binance smart chain, allowing users to earn rewards in its native token, MBOX. The NFTs can be traded on the MOBOX marketplace or staked to earn passive income.
Copyright © MOBOX
The Hive blockchain network is the foundation for the collectible card game Splinterlands. Players can trade and buy digital cards with unique NFT identifiers. There are more than 500 cards in the game that players can gather and employ in combat. SPS ( splinter shards) serves as the native token in the Splinterlands game.
SPS token holders can stake their tokens to receive incentives, participate in governance, and take advantage of exclusive deals, bonuses, and promotions. In order to use the NFT cards in other games, they can also stake NFT cards in liquidity pools.
Copyright © Splinterlands
On the Solana blockchain, 5000 pixel-art NFTs were created as part of Doge Capital. Owners of these Doge Capital NFTs will receive a Woof club membership and exclusive benefits.
Users can stake these NFTs in the platform's staking program to get daily payouts in DAWG tokens. It is the native utility token for the platform and is available on a number of exchanges. Users can get 5 DAWG token payouts per day by staking one NFT.
Copyright © Doge Capital
Polychain Monsters is a cross-chain ecosystem for digital collectibles and games. It's a framework for animated cross-chain NFTs with various characteristics and scarcity levels. These NFTs, commonly known as Polymons, are available in digital booster packs. NFTs' owners have the opportunity to stake them in exchange for weekly incentives in the form of PMON, Polychain Monsters' own cryptocurrency.
Copyright © Polychain Monsters
Other popular NFT staking projects
Are you thirsty for more? We got you covered!
Let's check a few other crypto projects that offer NFT staking. We know you've heard of them!
You can't call yourself a crypto enthusiast if you've never heard of Axie Infinity. It's one of the most popular crypto games, and it features Axies, little NFT creatures that players can breed, buy, trade, and use to battle each other.
Recently they added a new feature, Lunacia, the homeland of these cute creatures. LAND NFTs represent the tokenized plots that make up this metaverse. These plots of land can be developed into residences or other things in the future. Furthermore, landowners may discover AXS tokens on their properties.
Both the LAND NFTs and AXS tokens can be staked. In exchange, players get more AXS tokens.
Copyright © Axie Infinity
Built on the Ethereum blockchain, Mutant Cats is a collection of 9,999 cat avatars. The native utility token of the project, $FISH, can be earned by holders by staking their Mutant Cats. The fractionalized ownership of the DAO's vault assets is represented by $FISH tokens, which are paid out at a rate of 10 per day for each cat staked. Ownership of Cool Cats, CryptoPunks, Bored Ape Yacht Club, and other blue chip NFTs are distributed by the collection's DAO.
Copyright © Mutant Cats
A metaverse project called Wolf Game includes NFT staking built into its gameplay. NFTs are available as Wolves and Sheep in this universe. To keep their sheep NFTs safe from wolves, players will need to stake them.
Players will also receive WOOL tokens as compensation for staking Sheep NFTs. The wolves will grab all of the player's earned WOOL tokens if the sheep NFTs are not staked.
Copyright © Wolf Game
In conclusion - NFT staking is at its finest
Not that you needed much convincing, we're sure, but we've just showed you how NFT staking is one of the coolest ways to make some passive income. If you already own NFTs, why not put them to work for you, and if you don't, what are you waiting for?
Time is money guys, and your NFTs know it just as much as you and us.
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