What is NFT staking in crypto?

NFT staking: a new opportunity to generate passive income
The market for non-fungible tokens (NFTs) has grown rapidly in recent months, attracting investors, artists and collectors alike. NFTs are often considered collectibles or digital works of art, but there’s now a new way to use them: NFT staking.

This practice enables NFT holders to lock their assets onto centralized platforms or decentralized applications (dApps) to receive rewards in return, while retaining ownership of their NFTs.

How does NFT staking work?

NFT staking is based on a proof-of-stake (PoS) mechanism similar to yield farming in decentralized finance (DeFi).

Users can lock their NFTs onto a staking platform and receive rewards based on the annual percentage yield (APY) offered, the duration of staking and the number of NFTs staked.

This new opportunity not only allows investors to monetize their assets, but also to create new use cases for NFTs that go beyond the collector’s item.

Where can NFTs be staked?

Currently, NFT staking opportunities are mainly offered by Play to Earn games, but some projects are also developing the ability to stake NFTs on their platforms, such as the MOBOX or Zookeeper ecosystems. For example, Binance’s Fan Token platform enables token holders to stake their supported NFTs to earn additional rewards in Binance Fan Tokens.

Well-known projects such as Yuga Labs and its Bored Ape Yacht Club also allow the staking of NFTs from their ecosystem, provided they are linked with ApeCoin tokens (APE).

Conclusion

NFT staking is a new opportunity for investors to generate passive income from their NFT collections. It also creates new use cases for NFTs, which could be used for Play to Earn (or Plan & Earn) games or other areas powered by blockchain technology.

As the NFT market continues to grow, it’s likely that we’ll see new NFT staking opportunities emerge in the future.

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