This article will look at the best nft staking platforms available for you to make some passive income from your NFTs. We explain what NFT staking is, how NFT staking works, NFT rewards and how you can get started. Make sure you understand the risks involved before staking any of your NFTs or cash.
Table of Contents
What is NFT staking?
NFT staking allows you to use your unique digital tokens to generate passive income. While these tokens are often associated with images, such as the popular Bored Ape Yacht Club collection, they can represent a variety of objects, including digital art, video files and items in games.
NFT Holders stake their NFTs by attaching them to a platform or protocol for a ‘staking period’, in exchange for doing this they receive staking rewards. This can become an excellent way to generate extra revenue while still retaining ownership of your nonfungible tokens.
NFT staking is very similar to the yield farming found in decentralized finance (DeFi). Yield farming is where users can lend or deploy cryptocurrencies to liquidity providers and earn rewards through interest or fees from other users.
- Similar to proof-of-stake cryptocurrencies, NFT staking is the process of locking up your digital assets to receive rewards.
- NFT staking creates a new opportunity for NFT holders to earn rewards on their assets while still maintaining ownership of them.
- Users who own Bored Ape Yacht Club NFTs can participate in Binance NFT’s Ape NFT Staking Program to earn daily rewards.
How does NFT staking work?
The process of NFT staking is essentially the same as that for cryptocurrencies. However, it is important to note that not all NFTs can be staked; only those deemed suitable by the platform or protocol. To stake your NFTs, you will need to deploy them on an NFT staking platform, where they will be secured via a smart contract on the relevant blockchain protocol.
The concept of staking NFTs is relatively new, but it has already generated a lot of enthusiasm among NFT owners. This is because, unlike cryptocurrencies which can be bought and sold with ease, nonfungible tokens are unique and cannot be replaced – making people less willing to part with them. To stake your NFTs, you will need an appropriate crypto wallet, which must be suitable for the specific NFT in question.
To get started with NFT staking, you should first ensure that your preferred crypto wallet is compatible with the blockchain on which your NFTs are located. Then, you must connect the wallet to the staking platform to be able to send your NFTs across. This process is very similar to staking cryptocurrencies; you can finalize the staking by navigating to the dedicated section of the platform.
NFT staking rewards
The rewards available for NFT staking will depend on the platform and type of NFT. Generally, NFT stakers can receive periodic payouts which may be issued daily or weekly. These rewards can usually be received in the form of the platform’s utility token but there may be some exceptions. If desired, you can then trade these rewards and potentially turn them into other cryptocurrencies or traditional currencies.
Furthermore, some staking platforms have decentralized autonomous organizations (DAOs). NFT holders can lock their assets in a DAO pool, also known as an NFT staking pool, and gain access to governance functions on the platform. This may include voting rights when proposals are made and, in some instances, even making the proposals themselves.
Given that a large portion of the NFTs on the market come from various blockchain games, there are also different staking opportunities available in play-to-earn games such as Axie Infinity AXS. Through this gaming experience, players can acquire both crypto and NFTs which can then be staked. This means you can get your NFTs for free and then stake them.
How can I generate passive income through staking NFTs?
Investing in NFTs is a great way to earn passive income. To make this possible, you will need to make an upfront investment, either in time or money. When considering how to best achieve your financial goals with NFTs, it is important to pay attention to a few key factors. These include the type of NFTs you invest in, staking duration, the underlying blockchain and its associated staking rewards, and the liquidity of your chosen platform. By researching these points thoroughly, you can maximize your chances of success when building passive income with NFTs.
However, there are some clear benefits to this approach. If the game becomes popular, you can also gain income from the NFTs themselves. This means that it is essential to do your research on both the NFTs and the general market, to understand their utility, staking rewards and liquidity. Doing so will ensure that you maximize your chances of success in leveraging NFTs for passive income.
NFT staking platforms
The best nft staking platforms provide users with the opportunity to earn rewards by locking up their non-fungible tokens (NFTs). This type of staking allows users to passively generate income while maintaining ownership and control over their digital assets.
NFT staking is a relatively new concept, but it has seen increased popularity in recent years due to its ease of use and potential for high returns. Best nft staking platforms provide users with a simple way to start earning rewards without having to go through the complicated process of setting up a traditional staking pool.
When evaluating which platform is best for your needs, there are several factors to consider. First, you should look at the fees associated with each platform. Best nft staking platforms usually charge lower fees than traditional staking pools, so make sure you check out the fees before investing your NFTs. Next, you should consider the selection of tokens offered by each platform and ensure that they offer the ones you want to stake. Finally, make sure to research the reputation of each platform – read user reviews and review any previous experiences they have had with the platform.
By doing your research and choosing carefully, you can find the best nft staking platforms for your needs. Best nft staking platforms provide users with a secure, convenient way to earn rewards from their NFTs without having to go through complicated procedures or take on additional risk. With these platforms, you can easily start earning passive income from digital assets and take advantage of new opportunities in the rapidly evolving world of blockchain technology. Best of luck!
Binance NFT PowerStation
NFT PowerStation is a special feature of Binance Fan Token that allows devoted fans to score additional rewards when using the supported NFTs on the platform. This innovative feature lets users charge their NFTs to boost their fandom, granting them extra Binance Fan Tokens for supporting their chosen team.
PowerStation works by distributing rewards from a predetermined pool of tokens. These rewards are allocated based on the type of supported NFTs charged, their associated Fan Power, and the number of participants. Charging your NFTs over a longer period will result in higher fan rewards. It’s worth noting that these rewards are calculated hourly.
With a single payment and no annual renewal fees, Unstoppable Domains is an intriguing tool for crypto users.
NEXO
Nexo, a cryptocurrency lending platform, has announced its partnership with Singaporean hedge fund Three Arrows Capital to launch its first NFT-backed lending desk. This service will allow users to use popular non-fungible tokens such as Bored Apes and CryptoPunks as collateral for loans. While Nexo currently only accepts NFTs from specific collections, the platform plans to add more in the future. According to Nexo co-founder Antoni Trenchev, this is part of a plan to explore new use cases for NFTs and expand the services they offer.
Trenchev believes that NFTs have a wide range of potential uses. “[In the future,] we’ll be providing loans and financing people’s purchase against anything from digital real estate, to gaming items, or even limited edition Nike sneakers,” he noted. This announcement comes shortly after Nexo’s recent balance sheet acquisition of three Bored Ape NFTs through the Christie’s auction house in October. These digital cartoon primates were purchased by Nexo founder Kosta Kantchev for a total of $1.3 million.
Bitcoin and Ether, two of the more established digital assets, have been used as collateral for loans for some time. This allows holders to access fiat currency without having to sell their assets. To further this trend, Ledn, a savings and loan service, has previewed a new product that will enable customers to use Bitcoin as collateral when taking out real estate mortgages.
Nexo also offers loans from Cryptocurrencies.
NFTX
NFTX is a platform which facilitates the creation of ERC20 tokens backed by NFT collectables. Through this, users can stake their NFTs on the platform and mint vTokens at a 1:1 ratio. These vTokens can be used to get rewards, purchase NFTs from the vaults, and also to pool them in automated market makers (AMMs) for other users’ liquidity.
Splinterlands
Splinterlands is a blockchain-based collectable card game built on the Hive blockchain network. Players can acquire and trade digital cards with unique NFT identifiers, featuring over 500 distinct cards to be collected and used in battles. The platform’s native token, SPS (splinter shards), was established as a DAO on Binance Smart Chain, allowing users to stake their SPS tokens and receive rewards, participate in governance activities, and access exclusive offers, bonuses, and promotions. Additionally, they can also stake NFT cards in liquidity pools to provide other users with the resources necessary to utilize them.
Wolf Game – NFT Game With Staking
The Online Project of the Wolf Game is a metaverse project that has implemented NFT staking into its gameplay. In this world, NFTs are known as Wolves and Sheep. To protect their sheep from wolves, players will need to stake their NFTs.
Wolf Game debuted its “woolpaper” with a cinematic introduction: “In a quaint region of the metaverse, Sheep and Wolves on the blockchain compete for the tempting prize of WOOL, in a battle with high stakes.” Rather than an action-adventure title, this play-to-earn game requires players to strategize their moves, combining NFTs with Defi elements and staking mechanics to allow characters to generate passive income. It follows in the footsteps of Anonymice and EtherOrcs, two on-chain games that had implemented game theory. The current version of Wolf Game was released in December 2022 after several iterations, including November 2021’s Wolf Game and three spin-off mini-games: Alpha Game, Cave Game, and Risky Game – all of which featured the game’s current mechanics.
Players will receive rewards for staking their NFTs, which can be used to purchase in-game items or exchanged for other cryptocurrencies.
Axie Infinity
Axie Infinity is a blockchain-based gaming platform that enables users to collect, battle, and trade fantasy creatures called Axies. These unique digital characters are backed by Non-Fungible Tokens (NFTs). Players can use their Axies to compete in tournaments and earn rewards from staking or playing games. They can also purchase, sell, and trade these NFTs on secondary marketplaces for real money. In addition, players can stake their AXS tokens to earn rewards from the reward pool as well as participate in governance decisions on the network.
Band NFTs
Band NFTs is a global music NFT company operated and managed by both musicians and fans. It provides an exchange platform for the purchase of music NFTs, which can then be staked in royalty pools to gain a portion of the revenue generated from the corresponding albums. As the size of its library increases, so too does the potential for a higher return of income for those who have invested in their NFTs.
Polychain Monsters
Polychain Monsters is an ecosystem for digital collectables and gaming which uses animated cross-chain NFTs, known as Polymons. These NFTs have varying levels of scarcity and unique traits that can be acquired from digital booster packs. Users who possess these NFTs are able to stake them and gain regular rewards in the form of PMON, the platform’s native cryptocurrency.
Doge Capital
Doge Capital is a collection of 5000 pixel-art NFTs minted on the Solana blockchain. Owning one of these NFTs grants holders access to the Woof Club and its exclusive perks. There is also a staking program which enables users to stake their Doge Capital NFTs in order to receive daily rewards in the form of DAWG tokens. These are the platform’s native utility tokens and can be traded on various exchanges. For every NFT staked, users receive 5 DAWG token rewards daily.
Tamadoge
Tamadoge is one of the best nft staking platforms. It provides great fees, a selection of tokens and reliable services. Tamadoge allows you to earn rewards from your NFTs without having to go through complex procedures or take additional risks. The platform also offers liquidity mining and airdrops as bonuses, allowing users to maximize their returns easily. Additionally, Tamadoge has an excellent reputation with customers, making it a safe choice for anyone looking to start earning passive income from their digital assets.
Lucky Block
Launched in 2022, the Lucky Block project offers users a way to stake their NFTs and reap rewards based on the amount staked. The Lucky Block team has created a comprehensive guide on how to go about this process, which can be found here.
To begin the staking period of your NFTs with the Lucky Block platform, you’ll need to purchase a Lucky Block NFT from their website or select exchanges. Once acquired, you can deposit this NFT into the Lucky Block smart contract and decide on how long you’d like to stake it for – a minimum is 1 week and a maximum of 12 weeks. Your transactions will be processed faster if you are willing to pay more in gas fees.
MOBOX
MOBOX is an example of a blockchain-based game which also has its own NFT staking platform. This platform, known as the MOMOverse, features various kinds of NFTs that can be traded on MOBOX’s marketplace. However, users may also choose to stake these NFTs and generate passive income from them. Every MOMO possesses distinct qualities, and its hashing power is generated randomly.
Staking MOMOs on the MOBOX platform allows users to receive its governance token as a staking reward. This number is calculated based on the number of MOMOs that are staked and varies depending on their rarity and associated hashing power. As well as MOBOX, there are other popular NFT games such as Splinterlands and Axie Infinity offering similar services to NFT holders.
Other Platforms:
Band Royalty
Band Royalty is a music NFT platform that uses staking to reward holders of its limited collection. Holders of the staked NFTs will receive payments based on generated royalty income. The lock-up period for these tokens ranges from 90 to 5 years, after which the royalty income will be distributed.
Kira network
Kira network is a layer 1 network that will offer derivative products on staked assets, currently in testnet. As stated in their blog, users of Kira can stake NFTs and receive a tradeable, divisible fungible token as payment. This allows fractional shares to be created from the tokens.
Onessus
Onessus is a play-to-earn game that allows users to stake NFTs, receiving yield payments upfront. This process is facilitated by the combination of in-game cryptocurrency.
What is NFT staking and how to earn income from NFTs?
NFT staking is the process of locking up non-fungible tokens (NFTs) in order to earn rewards from the associated cryptocurrency network. Best nft staking platforms provide users with an easy way to start earning rewards without having to set up their own pool or take on additional risks. Best nft staking platforms often offer higher returns than traditional staking pools, making them an attractive alternative for those looking to make a passive income from their digital assets. Best nft staking platforms also have low entry barriers, so you can get started quickly and easily.
In addition to earning rewards, the best nft staking platforms may also offer other features such as liquidity mining and airdrops. Liquidity mining rewards users for providing liquidity to the platform’s pool, while airdrops are free tokens that are distributed to users as a reward. Best nft staking trading platforms allow users to take advantage of these features with ease, making them an attractive option for those looking to maximize their returns.
Pros and Cons of Staking NFTs
Pros of NFT staking
Putting your idle digital assets to work
One of the primary advantages of NFT staking is that you can make use of your dormant digital asset assets. If you have held an NFT for a while and do not intend to sell it, staking provides an ideal opportunity to put it to use without sacrificing ownership.
Engaging with projects and communities
Staking NFTs has the potential to offer a variety of rewards and benefits reward users, depending on the project. Generally, users will be rewarded with utility tokens when they stake their NFTs. These tokens can then be utilized in various ways, such as voting rights or governance privileges to influence the development of the project.
Cons of NFT staking
Potential for scams
Although there are clear benefits to staking NFTs, it is important to be aware of the risks involved. The NFT space is still in its infancy, making it difficult for users to differentiate between legitimate and malicious actors. It is not unheard of for a fraudulent staking platform to abscond with user funds or tokens.
To safeguard yourself against potential scams, it is recommended to always do your own research. Comprehensive investigations into the staking platform and its creators should be a priority in order to protect yourself. With this approach, it is wise to err on the side of caution.
Price volatility
When staking your NFT, it is important to be aware of the potential for price volatility. Depending on the platform’s terms and conditions, you may not be able to withdraw an NFT if it has a long lock-up period. Nevertheless, if holding long-term is your goal, short-term market movements should not be a major concern.
How NFT staking rewards are calculated
NFT projects typically reward stakers with an annual percentage yield similar to the cryptocurrency stake. Often the reward rates for NFT transactions increase with the time the user locks up their NFT assets and accounts for re-transfer. The move allows FT holders to stake assets primarily at the end of their trading period. Some apps may only show your return in terms of a token rather than an APY. So, you’ve got 20 tokens to win every time.
Is NFT staking worth it?
Provided that you possess a collection of idle NFTs, staking them can be an effective way to generate passive income. Through this concept of staking, fresh use cases for NFTs have been created which had not existed prior. Despite the idea of NFT staking being relatively new and inherently risky, it is highly likely that more NFT staking opportunities will become available in the future. The Stack NFT offers revenue sharing, which works similarly to staking rewards. The holders of NFTs will receive a portion of the revenues generated from Stack PRO subscriptions with the amount varying depending on the rarity of their NFT.
Is staking NFTs a smart investment decision?
Hopefully, when Ethereum successfully upgrades to a proof-of-stake mechanism, with staking replacing mining, gas fees will decrease, and staking NFTs will become more common.
The biggest advantage of staking NFTs is that you don’t need to sell your NFT collection to keep passively increasing your crypto stack.
So if you’re going to be holding NFTs long-term anyway, you may want to stake them. Although we don’t think we can necessarily recommend buying NFTs just for the main purpose of staking them.
It is hoped that when Ethereum upgrades to a proof-of-stake network with staking replacing mining, the gas fees will decrease and the practice of staking NFTs will become increasingly popular. The principal appeal of staking NFTs is that one does not need to sell their NFTs in order to grow their crypto portfolio passively. Therefore, if you plan to keep your NFTs for the long term, it may be worthwhile to consider staking them.
