If you’re not earning a passive income from your Non-Fungible Tokens (NFTs) then you could be missing out on a generational opportunity, and here I’ll explain why.
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What is NFT Staking?
NFTs are cryptographic assets that are unique. These qualities make NFTs an interesting asset class since they may be rented or leased to third parties, and thus are capable of generating a stable stream of income (much like rent or royalties).
NFT holders may transfer their assets to specialised DeFi platforms to generate a passive stream of income. Similar to DeFi yield farming, NFT staking relies on Proof of Stake (PoS) mechanisms to reward participants so delegators would be able to claim block and fee rewards.
The level of staking rewards is determined by various factors including the NFT’s desirability and capacity to develop an income stream (such as royalties).
The concept of NFT staking is still in its infancy although there is already some experimentation occurring, with most of the activity in this space currently emanating from play-to-earn games such as MOBOX and ZooKeeper where it’s sometimes possible to attain an annualised NFT staking yield of up to 300%!
Where to Stake NFTs?
MOBOX (MBOX)
MOBOX is a play-to-earn gaming metaverse that combines DeFi yield farming with NFTs. Built on the Binance Smart Chain, it allows players to stake NFTs to earn rewards in its native cryptocurrency, MBOX.
The MOBOX metaverse is called MOMOverse, and the NFTs are called MOMOs. You can mint, earn, or purchase MOMOs from the NFT marketplace. Each MOMO has different qualities and a randomly generated hash power. By staking unique MOMOs, you can farm the governance token MBOX. The more MOMOs you collect, the more MBOX rewards you can get each day.
These MOMO NFTs can also be used across other MOBOX partner platforms, and the NFTs from partnering projects can be used on MOBOX as well. For example, you can use your staked PancakeSwap Profile NFTs on MOMOverse without having to unstake them from PancakeSwap. This lets you enter team battles and earn CAKE staking rewards on PancakeSwap, and at the same time utilize them in MOBOX games to earn MBOX rewards.
ZooKeeper (ZOO)
Zookeeper is a gamified yield farming DApp. It provides NFT staking in liquidity pools that feature different mascots. All liquidity pools in Zookeeper allow dual farming, meaning that you can earn both the utility token ZOO and the WanSwap Liquidity Provider (WASP) token as rewards.
To increase APY rewards, you can choose to lock your tokens for a certain period, up to 180 days. You can also stake NFTs called ZooBoosters to maximize your rewards and reduce the locking period for your WSLP. ZooBoosters are NFT cards that can be obtained in gold chests purchased in the DApp or by staking ZOO tokens.
The Basics of NFTs
If you are new to the exciting world of NFTs then keep reading. The following comprehensive FAQ will quickly get you up to speed!
What is a Non-Fungible Token (NFT)?
ℹ️ The acronym NFT stands for Non-Fungible Token, which represents the ownership of tangible and intangible assets in a digital (cryptographic) format via the blockchain.
Unlike cryptocurrencies, which are fungible (every token unit is exactly identical and indistinguishable from each other), NFTs are non-fungible, meaning they are unique and irreplaceable.
Such unique assets may represent anything from the ownership of a house to physical paintings, digital art, and even in-game items such as skins.
NFTs allow you to tokenise real-world assets and claim their ownership through the blockchain. Through NFTs you could also fractionalise the ownership of high-value items such as a Picasso or a Monet painting!
How do NFTs work?
ℹ️ The most popular framework for the creation and issuance of NFTs is the ERC-721 smart contract and the more recent and improved ERC-1155 standard, which enables a single contract to contain both fungible and non-fungible tokens, opening up a whole new range of possibilities. The standardisation of the issuance of NFTs allows a high degree of interoperability, which benefits users. It basically means that unique assets can be transferred between different applications with relative ease.
Binance Smart Chain (BSC) has its own NFT standards: BEP-721 and BEP-1155. These two provide similar functionality to the above-mentioned Ethereum standards. Both have become attractive for creators looking to mint NFTs as the cost is substantially lower than Ethereum.
Where to Store NFTs?
ℹ️ You can store your NFTs on Trust Wallet. Just like other blockchain tokens, your NFT will exist on an address.
Where to Trade NFTs?
ℹ️ NFTs can be traded on open marketplaces, including BakerySwap, Treasureland, Juggerworld on BSC, and OpenSea on Ethereum.
What can NFTs be used for?
ℹ️ NFTs can be used by decentralised applications (DApps) to issue unique digital items and crypto collectibles. These tokens can either be a collectible item, an investment product, or something else.
They can be used to tokenise gaming assets and real-world assets. These NFTS can represent fractions of real-world assets that can be stored and traded as tokens on the blockchain. This could introduce liquidity to many markets that otherwise wouldn’t have much such as fine art and other rare collectible items.
How to Make NFTs?
ℹ️ You can create your own NFTs on either BSC or Ethereum. The process is simple and you’ll first need to buy some crypto to pay for your minting fees. You’ll need to choose between minting your NFT on Ethereum or Binance Smart Chain.
Ethereum is traditionally the home of NFTs although the transaction fees are very costly. BSC is a newer blockchain but has already seen a lot of growth in its NFT markets. Transactions are also significantly cheaper!
If you have any views or interesting insights to share about NFT staking then please feel free to reach out to us.