NFT Staking: Making Passive Income with NFTs
A lot of people think of NFTs as digital assets that get their value from being unique and non-fungible. Others see NFTs as a digital representation of art. All these points of view are valid, but NFTs can be more than just unique digital assets, profile pictures, and digital representations of art.
There are NFTs with utilities, these NFTs offer their owners exclusive membership and access to a lot of features and packages. This isn't the only utility of NFTs. You can earn passive income from your NFTs also.
Most NFT holders prefer to hodl their NFTs hoping to sell them when their price increases, while others prefer to flip their NFTs. With NFT staking, these NFTs can earn you money without you losing ownership.
NFT staking allows NFT holders to lock or stake their NFTs in protocols or Defi platforms to earn a yield based on the number of NFTs staked and the Annual Percentage Yield (APY) while still having ownership of their NFTs. Just like in DeFi yield farming, NFT staking also uses the Proof of Stake (PoS) mechanism to reward individuals who stake their NFTs.
However, something worth note-taking is that not all NFTs can be staked for rewards. The requirement and specifications for these NFTs vary from project to project. So do your research on the NFT you're buying into.
In 2021, most of the NFT staking activities were carried out in play-to-earn games. The players of these games were allowed to stake their in-game assets for rewards. One of such games is MOBOX(MBOX).
MOBOX is a play to earn game built on the Binance Smart Chain, it allows players to stake their in-game NFTs called MOMOs to earn rewards in the game's native crypto, MBOX. MOMOs can be earned, minted, or purchased by players.
Other platforms allow the staking of NFTs, such as; Onessus, Only 1, and NFT PowerStation on the Binance Fan Token Platform.
NFT staking creates a new way for NFT collectors and gamers to earn extra income from their NFT collection without losing ownership of them.
Posted Using LeoFinance Beta