Disclaimer: This article is for educational purposes only. Binance has no relationship with nor does it endorse these projects. The information provided through Binance does not constitute investment or trading advice or recommendations. Binance is not responsible for your investment decisions. Seek professional advice before taking financial risks.


TL;DR (SUMMARY)

NFT staking is a new way to generate passive income in the world of cryptocurrencies. It allows NFT holders to lock their escrow assets on DeFi platforms to receive rewards. All this without having to sell your NFT collections.

Similar to DeFi yield farming, NFT staking relies on a Proof of Stake (PoS) mechanism to reward participants. By staking NFTs, users can receive rewards based on the annual percentage yield (APY) and the number of NFTs staked.

On a particular level, NFT staking can benefit investors as the overall supply of the asset tends to be lower. But in a broader sense, NFT staking brings with it new use cases for NFTs that transcend the idea of ​​collecting digital art.


Introduction

When we talk about non-fungible tokens (NFTs), most people think of them as digital representations of pieces of art and collectibles that can potentially increase in value over time. Some NFT projects share a portion of the revenue they receive with their community of holders. This income generally comes from secondary market sales and royalties.

But as the NFT market grows, developers, artists and collectors are beginning to explore new cases for their NFT collections. One of the most recent use cases is using NFTs as utility tokens on staking platforms. For example, in some gaming metaverses, NFT collectors can stake their NFTs to upgrade their in-game character's abilities, as well as earn additional rewards.


What is NFT staking and how does it work?

As the name suggests, NFT staking refers to locking NFTs into escrow on a platform or protocol to receive staking rewards and other privileges in return. This allows NFT holders to generate passive income, without having to give up ownership of their NFT.

Although NFT staking is still in its early stages compared to other DeFi yield farming concepts, they work in a similar way. By locking up NFTs on a platform, you will be able to receive rewards based on the annual percentage yield (APY), the duration of the staking, and the number of NFTs staked.

Due to the unique nature of NFTs, investors and collectors generally prefer to HODL and speculate. NFT staking opens up a new opportunity for them to monetize their assets, which could potentially attract more people to participate and increase market demand for stakingable NFTs.

Staking an NFT is like staking your Bitcoin (BTC) or Ether (ETH). All you need is a cryptocurrency wallet with NFTs. However, not all NFTs can be staked to earn rewards. Requirements vary between projects, so it is best to examine your preferred projects before purchasing NFTs.


Where can I stake my NFTs?

As of December 2021, the majority of NFT staking opportunities come from play-to-earn games. MOBOX and Zookeeper are two examples. Some projects are also developing the possibility of staking NFTs on their platform, as is the case with the Binance Fan Tokens and Doge Capital platform.


MOBOX (MBOX)

MOBOX is a play-to-earn gaming metaverse that combines DeFi yield farming with NFTs. Built on Binance Smart Chain, it allows players to stake their NFTs to earn rewards in the native cryptocurrency, MBOX.

The MOBOX metaverse is called MOMOverse, and the NFTs are called MOMO. You can mint, earn or buy MOMO on the NFT marketplace. Each MOMO has different qualities and a randomly generated hash power. By staking unique MOMOs, you will be able to farm the MBOX governance token. The more MOMOs you collect, the more MBOX rewards you will receive each day.

These MOMO NFTs can also be used on other MOBOX partner platforms, and NFTs from these partner projects can also be used on MOBOX. For example, you can use your staked PancakeSwap profile NFTs on MOMOverse, without needing to unstake them on PancakeSwap. This allows you to access team battles and earn CAKE staking rewards on PancakeSwap, while also using them in MOBOX games to earn MBOX rewards.


Zookeeper (ZOO)

Zookeeper is a gamified performance farming DApp. Offers NFT staking in liquidity pools representing different pets. All Zookeeper liquidity pools support dual farming, which means you can earn both the ZOO utility token and the WanSwap liquidity provider (WAS) token as rewards.

To increase APY rewards, you have the ability to escrow your tokens for a certain amount of time, up to 180 days. You can also stake NFTs called ZooBoosters to maximize your rewards and reduce the lock-up period of your WSLPs. ZooBoosters are NFT cards that can be obtained in gold chests purchased in the DApp or by staking ZOO tokens.


PowerStation de NFT en la plataforma de Binance Fan Tokens

Binance is the first cryptocurrency exchange to offer an NFT upload service. On the Binance Fan Tokens platform, token holders can upload supported NFTs of their favorite team to earn additional Fan Token rewards. Binance fan tokens are utility tokens issued by sports clubs.

Binance Fan Tokens allow sports fans to access special club benefits, such as discounts on tickets and limited edition products, voting and decision-making rights on club matters, reserved exclusively for holders of said tokens.

NFT PowerStation is an innovative gamification feature on the Binance Fan Tokens platform. By uploading supported NFTs to the respective team's PowerStation, fans can boost their fan power and claim additional Fan Token rewards. The longer the NFTs are uploaded, the higher the fan rewards users can receive.

If you want more information on how to earn rewards by uploading NFTs to the Binance Fan Tokens platform, check out this guide.


Conclusions

NFT staking allows participants to earn additional income from their idle NFT collections. In turn, NFT staking generates new use cases for NFTs that have never been explored until now. It's still early to know for sure, but we will likely witness the creation of new NFT staking opportunities. Not only for NFT collectors, but also in the play-to-earn gaming sector and other areas developed by blockchain technology.


Disclaimer: This article is for educational purposes only. Binance has no relationship with nor does it endorse these projects. The information provided through Binance does not constitute investment or trading advice or recommendations. Binance is not responsible for your investment decisions. Seek professional advice before taking on financial risks.