A Beginner's Guide to NFT Staking
Disclaimer
This article is for educational purposes only. Hexn is not associated with the mentioned projects and does not endorse them. The information provided by Hexn is not investment or trading advice. Hexn is not responsible for any investment decisions made based on this information. It is advisable to consult a financial professional before taking any financial risks.
NFT staking is a popular way to earn passive income in the crypto world. It involves locking NFT assets in DeFi platforms to receive rewards without selling them. NFT staking works like yield farming in DeFi, rewarding participants based on the interest rate and the number of NFTs staked. This practice benefits individual investors and expands the use cases of NFTs beyond collecting digital art.
Basics
NFTs are commonly associated with digital art and collectibles that hold potential value appreciation. Certain NFT projects allocate a portion of their revenues to the NFT holder community, primarily generated from secondary market sales and royalties.
However, as the NFT market expands, developers, artists, and collectors are venturing into new applications for their NFT collections. One emerging use case involves utilizing NFTs as utility tokens in staking platforms. In gaming metaverses, for instance, NFT collectors have the opportunity to stake their NFTs, enhancing their in-game character's capabilities while earning additional rewards.
How Does NFT Staking Work?
NFT staking involves locking up NFTs on a platform to earn rewards and benefits. It provides a way for NFT holders to earn passive income while retaining ownership of their NFTs. Similar to DeFi yield farming, NFT staking rewards participants based on factors like interest rates and the number of NFTs staked. It offers an opportunity for investors and collectors to monetize their NFT assets and may attract more participants to the market. However, it's important to note that not all NFTs can be staked, as requirements vary among projects.
Places to Stake NFTs
Play-to-earn games present the majority of NFT staking opportunities, with notable examples like MOBOX and Zookeeper. Additionally, platforms such as Doge Capital are actively developing NFT staking functionalities.
Zookeeper (ZOO)
Zookeeper is a gamified yield farming DApp that offers NFT staking in different liquidity pools. Users can earn rewards in the form of ZOO tokens and WASP tokens through dual farming. By locking their tokens for a specific period, users can increase their rewards. Additionally, ZooBoosters, which are NFT cards, can be utilized to optimize rewards and shorten locking periods. These ZooBoosters can be obtained through various means, such as purchasing chests or staking ZOO tokens.
MOBOX (MBOX)
MOBOX is a gaming metaverse that combines play-to-earn and DeFi yield farming using NFTs. Players can stake their NFTs, known as MOMOs, to earn rewards in the form of MBOX tokens. MOMOs can be obtained through minting, earning, or purchasing from the marketplace. The more MOMOs you collect, the higher your daily MBOX rewards. These MOMO NFTs can also be used across MOBOX partner platforms, allowing for cross-platform utility and additional earning opportunities.
Doge Capital (DAWG)
Doge Capital is a development studio specializing in services for the Solana ecosystem, including SaaS-based applications, custom services, Web3 consulting, and education. Doge Capital enables Doge token holders to stake their NFTs and earn $DAWG tokens as rewards. This staking feature enhances user engagement within the Doge Capital ecosystem.
Conclusion
NFT staking offers an opportunity for NFT holders to earn additional income from their idle collections. It also introduces new use cases for NFTs that were previously unexplored. As the space continues to evolve, we can anticipate the emergence of more NFT staking opportunities. These opportunities will not only benefit NFT collectors but also extend to the Play-to-Earn gaming industry and other sectors driven by blockchain technology.