NFTs offer a lot more than meets the eyes.
They may seem like JPEGs to some, but they have the potential for transformation in every industry. Event Ticketing to Digital Art to Digital “Phygital” Goods
NFTs have a hidden value that lies below the surface, in their intrinsic utility. This is something that cannot be captured with a screen grab.
A second thing most people don’t know about NFTs is their ability to make passive income .
Many collections offer the opportunity to stake NFTs and earn rewards. NFT staking platforms are available to both holders and non-holders.
This article will discuss what NFT staking is and how to earn rewards via NFTs.
What Is NFT Staking?
NFT staking is the act of locking up an asset and earning passive income through cryptocurrency.
Some collections permit users to deposit NFT for an indefinite lockup, while others require that NFTs be staked for a certain time before they can be unstaked.
You can also use dedicated platforms to reward NFT collectors by exchanging tokens for NFTs from multiple projects or blockchains.
How Does NFT Staking Work?
The key feature of many blockchains is Staking . Ethereum, a traditional cryptocurrency, implements a Proof of Stake (PoS), which secures the blockchain by validators voting according to how many tokens they stake.
DeFi yield farming is also available, as well as liquidity pools. These allow you to swap equal amounts of tokens to earn a percentage from total network transaction fees.
The best way to earn crypto interest is to stake your coins for a set lockup period. This will allow you to earn more coins than you earn from traditional banks.
You can stake NFTs in many collections, which is a good thing.
Passive income can be earned from certain NFTs if they are staked on a compatible platform. This is a great tool for NFT holders who are long-term. They can earn passive income instead of just holding their assets in a cryptocurrency wallet.
Rewards For Staking NFTs
The platform and type of NFT staked will determine the type of reward NFT owners can receive for their collection. Most platforms that allow you to stake NFTs offer weekly or daily rewards. The platform’s native utility token is usually used to issue the staking reward. This token can then be traded on exchanges for other cryptocurrencies and fiat money.
Some staking platforms have a decentralized autonomous organisation ( DAO). This allows NFT holders to lock up their assets in a DAO pool and participate in the platform’s governance and vote for future proposals.
A majority of NFT market share can be attributed to in-game NFTs. Therefore, play-to-earn gaming platforms like Axie Infinity and The Sandbox have the best staking opportunities. In the next section, we’ll discuss some of the most popular platforms for NFT staking.
Web 1.0 was created by Sir Tim Berners–Lee and is the first version of the World Wide Web we have come to love since the mid-90’s. Dixon claims it is the “killer application” that was built on top of the internet. The internet had been around for a while.
Web 1.0’s key feature is the fact that most content is read-only. Users are consuming and not creating. This is why, even though the early days of web were referred to as the “golden age of innovation”, the number of products being developed was very limited.
Best Platforms To Stake Your NFT
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NFTX
NFTX allows users to create ERC20 tokens, which are backed with NFT collectibles. NFTX vault users deposit their NFTs and create an ERC20 token. It’s composable, and can be fungible at a 1:1 ratio. These tokens are called vTokens and can be staked to earn yield rewards or used for purchasing specific NFTs from a vault.
To create a liquid trading market, holders can pool their vTokens with automated market makers (AMMs). As a liquidity provider, a user can earn trading fees. Investors who are trying to price NFTs can also use vTokens with liquidity and high trading volumes for a floor price.
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Splinterlands
Splinterlands, a blockchain-based card game that can be collected and used in matches, is similar to Hearthstone.
The native token for the game is called SPS. It’s a DAOon Binance Smart Chain (BSC). SPS tokens can be staked on players who participate in ranked battles and liquidity pools.
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BAND NFTs
Music NFTs are a new era in the music industry. In this new era, creators have full control over distribution. BAND royalty is leading this revolution. It is an NFT exchange that allows users to buy music NFTs, and stake them into royalty pools to receive a share of the profits from their songs or albums. NFT stakers will see a higher royalty stream the larger the platform’s music collection.
Is NFT Staking Profitable?
NFT staking is still a new concept.
NFTs face liquidity problems, partly due to the infancy of the ecosystem and partly because most NFTs are bought for long-term investments.
Investors who are new to crypto markets and want to learn more about NFTs have been attracted by the hype surrounding them.
NFT staking is not as well-known as cryptocurrency staking but there is a lot of potential for it to grow in the near future. This is especially true when Eth2 successfully upgrade to a PoS mechanism with staking taking over mining.
NFT staking already has a solid foundation that has yielded results. NFT staking has one major advantage. You don’t have to sell or transfer ownership. You only need to lock your assets in a pool and get rewards.
It’s so simple!
If you want to learn more about some NFT business ideas, you can check out this article here
