Disclaimer: This article is for educational purposes only. Binance has no affiliation with these projects and does not promote their interests. The information provided on Binance does not constitute investment advice or trading recommendations. Binance is not responsible for your investment decisions. Please seek professional advice before accepting any financial risk.

Disclaimer: This article is for educational purposes only. Binance has no affiliation with these projects and does not promote their interests. The information provided on Binance does not constitute investment advice or trading recommendations. Binance is not responsible for your investment decisions. Please seek professional advice before accepting any financial risk.

Carefully! Lots of text.

NFT staking is a new way to earn passive income in the world of cryptocurrencies. It allows NFT owners to lock assets on DeFi platforms and receive rewards without having to sell their NFT collections.

To reward participants, the Proof of Stake (PoS) mechanism is used here. For staking NFTs, users are rewarded based on the annual percentage yield (APY) and the number of NFTs staked.

Listing NFTs could benefit investors as overall supply declines. On a global level, staking offers new uses for NFTs beyond digital art collecting.

Introduction

Most people think of non-fungible tokens (NFTs) as digital versions of works of art and collectibles that can increase in value over time. Some NFT projects share a portion of their revenues from secondary market sales and royalties with the NFT holder community.

But as the NFT market evolves, developers, artists, and collectors are exploring new uses for their NFTs, including using NFTs as utility tokens on staking platforms. For example, in some gaming metaverses, NFT collectors can stake them, develop their in-game character, and earn additional rewards.

What is NFT staking and how does it work?

As the name suggests, NFT staking involves locking the NFT on a platform or protocol and receiving staking rewards along with other perks. This allows NFT owners to earn passive income while maintaining ownership of the NFT.

While NFT staking is still in its infancy compared to other DeFi yield farming concepts, they work in a similar way. For staking NFTs on the platform, you can earn rewards based on the annual percentage yield (APY), the staking period, and the number of NFTs staked.

Due to the unique nature of NFTs, investors and collectors prefer to hold (HODL) and speculate. NFT staking offers a new opportunity to monetize assets, which could potentially attract more participants and increase market demand for staking-enabled NFTs.

Staking NFTs works the same way as staking Bitcoin (BTC) or Ethereum (ETH). To get started, you only need a cryptocurrency wallet. However, not all NFTs can be staked and receive rewards. Requirements may vary between projects, so it's best to double-check the information before purchasing an NFT.

Where can you stake NFTs?

As of December 2021, the majority of NFT staking opportunities are related to play-to-earn games. Two such examples are MOBOX and Zooepers. Some projects are also developing NFT staking capabilities on their platforms, such as Binance's fan token platform and Doge Capital.

MOBOX (MBOX)

MOBOX is a gaming metaverse that combines DeFi and NFT returns. Built on the Binance Smart Chain, it allows players to stake NFTs and receive rewards in their native cryptocurrency, MBOX.

The MOBOX metaverse is called MOMOverse, and its native NFTs are called MOMO. Here you can issue, earn or buy MOMOs on the NFT marketplace. Each MOMO has different qualities and randomly generated hash power. By adding unique MOMOs to staking, you can farm MBOX governance tokens. The more MOMOs you collect, the more MBOX rewards you will receive every day.

These MOMO NFTs can be used on MOBOX partner platforms, and NFTs from partner projects can be used on MOBOX. For example, PancakeSwap profile NFTs can be used on MOMOverse without taking them out of staking. This allows you to participate in team battles and earn CAKE rewards in PancakeSwap, while also using tokens in MOBOX games and earning MBOX.

Zookeeper (ZOO)

Zookeeper is a gamified DApp for profit farming. It provides staking of NFTs in liquidity pools with different mascots. All liquidity pools in Zookeeper allow dual-currency farming, which means you can earn both ZOO utility tokens and WanSwap liquidity provider (WASP) tokens as rewards.

To receive more APY rewards, do not complete staking tokens within a certain period of up to 180 days. You can also stake NFTs called ZooBoosters, increasing your rewards and shortening your WSLP staking period. ZooBoosters are NFT cards that can be found in gold chests purchased in DApps or obtained by staking ZOO tokens.

How to Use NFT PowerStation on Binance Fan Token Platform

Binance is the first cryptocurrency exchange to allow NFT staking. On the Binance Fan Token platform, you can stake your favorite team's NFTs and receive Binance Fan Tokens as a reward. Binance Fan Tokens are utility tokens issued by sports clubs.

Binance Fan Tokens allow sports fans to receive club benefits such as exclusive ticket discounts, limited-time merchandise, and voting rights on club matters.

NFT PowerStation is an innovative gamification feature on the Binance Fan Token Platform. By adding supported NFTs to the respective teams' NFT PowerStation, fans can earn additional rewards in the form of Binance Fan Tokens. The longer NFTs are staked, the more rewards fans receive.

More information on how to earn NFT staking rewards on the Binance Fan Token platform can be found in our guide.

Summary

NFT staking is an opportunity to earn additional income from non-fungible tokens, as well as an innovative use case for NFTs. It may be too early to tell, but in the future we will likely see more new NFT staking opportunities not only for collectors, but also in play-to-earn games and other areas using blockchain technology.

Disclaimer: This article is for educational purposes only. Binance has no affiliation with these projects and does not promote their interests. The information provided by Binance does not constitute investment advice or trading recommendations. Binance is not responsible for your investment decisions. Seek professional advice before accepting financial risk.