Disclaimer: This article is for educational purposes only. Binance has no relationship with this project and no endorsement for this project. The information provided through Binance does not constitute investment or trading advice or suggestions. Binance is not responsible for any of your investment decisions. Please seek professional advice before assuming any financial risk.
Disclaimer: This article is for educational purposes only. Binance has no relationship with this project and no endorsement for this project. The information provided through Binance does not constitute investment or trading advice or advice. Binance is not responsible for any of your investment decisions. Please seek professional advice before assuming any financial risk.
TL;DR
NFT staking is a new way to generate passive income in the crypto world. This activity allows NFT owners to lock their assets in the NFT platform to receive rewards. All without having to sell their NFT collection.
Similar to DeFi yield farming, NFT staking relies on a Proof of Stake (PoS) mechanism to provide rewards to participants. By locking NFTs, users can receive rewards based on annual percentage yield (APY) and the number of NFTs staked.
On an individual level, staking NFTs can benefit investors, as overall supply tends to be lower. However, in a broader context, NFT staking brings new uses for NFTs that go beyond the concept of collecting digital art.
Introduction
With regards to non-fungible tokens (NFTs), most people think of them as digital representations of works of art and collectibles that can potentially experience growth in value over time. Some NFT projects share a share of the revenue generated with the NFT owner community. This income usually comes from secondary market sales and royalties.
However, as the NFT market grows, developers, artists, and collectors are exploring new uses for their NFT collections. One of the newest uses is using NFTs as utility tokens in staking platforms. For example, in some gaming metaverses, NFT collectors can stake their NFTs to improve game character abilities and earn additional rewards.
What is NFT staking and how does it work?
As the name suggests, NFT staking refers to locking NFTs on a platform or protocol to receive staking rewards and other privileges. This allows NFT owners to generate passive income while retaining ownership of their NFTs.
While still in its infancy compared to other DeFi yield farming concepts, NFT staking functions in a similar way. By locking NFTs on a platform, you can receive rewards depending on the annual percentage yield (APY), staking duration, and the number of NFTs staked.
Due to the unique nature of NFTs, investors and collectors generally prefer HODLing and speculating. Staking NFTs opens up new opportunities for them to monetize their assets which could potentially attract more people to participate and drive market demand for stakingable NFTs.
Staking an NFT is the same as staking bitcoin (BTC) or ether (ETH). All that is required is a cryptocurrency wallet with NFTs. However, not all NFTs can be staked to get rewards. Requirements vary from project to project. So, you'd better check out the projects you like before getting an NFT.
Where can I stake NFTs?
As of December 2021, the majority of NFT staking opportunities come from play-to-earn games. MOBOX and Zookeper are two examples. Several projects are also developing NFT staking capabilities on their platforms, such as the Binance Fan Token Platform and Doge Capital.
MOBOX (MBOX)
MOBOX is a metaverse play-to-earn game that combines DeFi yield farming with NFTs. Built on the Binance Smart Chain, MOBOX allows players to stake NFTs to earn rewards with their native cryptocurrency, MBOX.
MOBOX's metaverse is called MOMOverse and its NFTs are called MOMO. You can mint, earn, or buy MOMO from the NFT marketplace. Each MOMO has varying qualities and randomly generated hashing powers. By staking the unique MOMO, you can farm its governance token, namely MBOX. The more MOMO you collect, the more MBOX rewards you can get every day.
These MOMO NFTs can also be used on other MOBOX partner platforms and NFTs from partner projects can be used on MOBOX too. For example, you can use staked PancakeSwap Profile NFTs on MOMOverse without having to unstake PancakeSwap. This allows you to enter team battles and earn CAKE staking rewards on PancakeSwap and at the same time utilize them in MOBOX games to earn MBOX rewards.
Zookeeper (ZOO)
Zookeeper is a yield farming DApp with gamification. This DApp provides NFT staking in liquidity pools featuring various mascots. All liquidity pools on Zookeper allow double farming. This means that you can get the utility token, namely ZOO, and the WanSwap Liquidity Provider (WASP) token as a reward.
To increase APY rewards, you can choose to lock tokens for a certain period of time up to 180 days. You can also stake an NFT called ZooBooster to maximize rewards and reduce the WSLP lockup period. ZooBoster is an NFT card that can be obtained in gold chests purchased on the DApp or by staking ZOO tokens.
NFT PowerStation di Platform Token Fan Binance
Binance is the first crypto exchange to offer NFT charging services. On the Binance Fan Token Platform, token holders can charge NFTs of their favorite supported teams to earn additional Binance Fan Token rewards. Binance Fan Tokens are utility tokens issued by sports clubs.
Binance Fan Tokens allow sports fans to access special club perks, such as exclusive discounts on tickets and limited edition merchandise, voting, and decision-making rights on club interests that are reserved exclusively for the owner of the token.
PowerStation NFTs are an innovative gamification feature on the Binance Fan Token Platform. By charging supported NFTs on the respective team's NFT PowerStation, fans can charge their fandom and claim additional Binance Fan Token rewards. The longer the NFT is charged, the higher the fan reward can be obtained.
For more information on how to earn rewards by charging NFTs on the Binance Fan Token Platform, please read this guide.
Closing
NFT staking allows participants to generate additional income from their idle NFT collections. At the same time, NFT staking creates new uses for NFTs that have never been explored before. It's still early, but we may see new NFT staking opportunities created. This is not just for NFT collectors, but also for those in the Play-to-Earn gaming industry and other areas powered by blockchain technology.
Disclaimer: This article is for educational purposes only. Binance has no relationship with this project and no endorsement for this project. The information provided through Binance does not constitute investment or trading advice or advice. Binance is not responsible for any of your investment decisions. Please seek professional advice before assuming any financial risk.