Have you heard of the term “Staking”? If not, it is your time to know it now. Staking is the process of holding non-fungible tokens and people who stake such tokens for a stipulated time earn rewards from the seller or the creator. There are specialized platforms that work exclusively as platforms to stake NFTs, which are a new addition to the growing DeFi domain. In this blog, we will see more about staking NFTs and some platforms where NFTs can be staked.
A Little Bit More About Staking
Staking has been a way to generate passive income in the world of cryptocurrencies. Before we look into more detail on how NFT staking works, it would make sense to know how staking cryptos works. Cryptocurrencies are speculative assets, so there is a lot of wait-and-HODL around. So, if a cryptocurrency holder stakes their holding for a predetermined amount of time in a staking platform, they can get rewards in various forms as it helps maintain the circulation of the cryptocurrency.
How Would This Work For NFTs?
While speaking about staking NFTs, we can think of staking NFTs on a DeFi platform and earning passive income without even losing the NFTs.
For users, NFT staking can yield rewards that include native tokens, cryptocurrency, and even fiat currency in some cases. The platforms dedicated to the process offer a great user experience, advanced security features, beneficial add-ons, and even sophisticated smart contracts, thus, making more users return to the staking platform and many others to join.
As a business venture, NFT staking is still a highly talked about the concept as a business venture, although the applications are far and few. Still, as far as NFTs are concerned, the rarity of the NFT product is the main factor that determines the profits earned upon staking them. So, it is the perfect time to jump into this thought of NFTs and create successful ventures out of it.
Some benefits of NFT staking for users include a range of rewards for their act, random airdrops to encourage users to work more, incentives depending on the period that a user stakes the NFTs, and finally, assurance of transparency by enabling the public to view the staking records on the blockchain to build trust.
Some of the Best NFT Staking Platforms
- Onessus is a play-to-earn NFT platform that supports staking through utilizing its native token $VOID. The staking system is called “When Staking.”
- The operation is quite easy as one has to first incorporate their NFTs into the wallet present in the system. Then, the number of VOID tokens to be added is mentioned (Beware: there is a limit for the number of VOID tokens one can stake).
- After that, the Stake option can be selected. Then, the lockup period (the period the NFT stays under staking) is decided. This decides the annual percentage yield (APY). For staking to occur, the user should lease their NFTs.
- One thing to be noted here is that staking NFTs without VOID tokens or VOID tokens without NFTs would not yield any rewards for the user. Onessus works on a VOID token-driven system.
- HodlGod, VOID Market, NiftyVillie, and WhenStaking are major platforms where VOID tokens can benefit their holders.
- Although the in-built mechanism that allows NFTs to be leased to gamers benefits gamers to utilize the unlimited version of NFTs, the rule that requires users to stake VOID tokens along with their NFTs is seen as a disadvantage (although these can be taken back after the locking period has passed).
- For every creator and influencer looking to utilize the Solana blockchain, Only1 might be the ultimate hotspot. Only1 is a social media platform based on the Solana chain where creators can monetize their art through various means.
- Time and attention are incentivized in this platform, as creators get rewards. So, users are not pressured to make their work earn money or pay a third-party intermediary to promote the work even before starting to sell.
- The native token $LIKE is given to creators who onboard their content staking project Content Genesis – NFT. Also, creators can even create exclusive content unlocked by buying an NFT or paying a $LIKE.
- Although the platform seems promising, the lack of patronage is the major con surrounding Only1.
- KIRA is a DeFi-based NFT staking platform that is one of the most outstanding portals.
- First, the users must transfer the assets to the KIRA platform and submit a request. A corresponding interest is offered when it is accepted, and a passive income starts to generate.
- The assigned interests become the revenue for the assets, and the payment is based on the rules set by the KIRA network governance. Such a process ensures that the traffic on the platform is less and the network is secured.
- In KIRA, NFT holders can re-funge or fractionalize their assets to other users to trade or lend.
- This platform operates on Ethereum, Binance Smart Chain (BSC), Cosmos, and Polkadot.
- KIRA offers multi-layer security, rewards NFT holders in various ways, and governance works flexibly. A major setback is that the buzz for such a revolutionary platform is very low.
- Splinterlands (earlier Steem Monsters) is a play-to-earn game about monsters.
- The game is all about trading cards (the NFTs) hidden at strategic places that can be used during battles. The native tokens are called dark energy crystals, abbreviated as $DEC. If a player finishes the daily tasks for 15 days, they are rewarded.
- Although built on the Hive Protocol, these cards can be transformed into ERC-721 tokens, which can then be traded in NFT marketplace portals.
- There is never a dull moment as users are present at any time, keeping the network running. The daily quests reward and sharpen the skills of its players.
- An automated system decides the demand and supply in the game world. The native currency BAT can be used to earn rewards.
- Although the game is cool, some users find a problem with the theme. Also, the automation can tense the players on some days, and the response time is slow since there are a lot of activities carried out anytime.
In conclusion, NFT staking is a growing domain that can get traction quicker than expected when processed in the right direction. If you are looking to delve into this brand new domain, this blog might have given how the NFT staking world looks today with some examples. It is better to get started with one of these platforms as soon as possible and earn some income through NFTs that sit idle on your wallet.