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What is NFT Staking? How does it work?

NFT Staking is a way to make passive income in crypto. NFT holders can lock their assets on Defi platforms and receive rewards. It’s all done without the need for NFT holders to sell their collections.

NFT staking is similar to Defi yield farm. Participants are rewarded with a Proof of Stake mechanism (PoS). Users can lock up NFTs and receive rewards based upon the annual percentage yield (APY), as well as the number of staked NFTs.

NFT staking is beneficial for investors at the individual level as there tends to be a lower overall supply. NFT staking has many other benefits that are beyond just the concept of digital art collection.

Introduction

Non-fungible tokens (NFTs) are digital representations of art and collectibles. They could increase in value over the course of time. NFT projects may share a portion of the revenue they receive with their community. These are usually secondary market sales or royalties.

Developers, artists, collectors, and others are looking for new uses for their NFT collection as the NFT market continues to grow. NFTs can be used as utility tokens on staking platforms. NFT collectors may stake their NFTs in staking platforms to increase their gaming character’s abilities or earn additional rewards.

What is NFT staking? How does it work?

NFT staking, as the name implies, is the act of locking NFTs onto a protocol or platform to earn staking rewards and other privileges. This allows NFT owners to make passive income and still retain ownership of their NFTs.

NFT staking, while still in its infancy relative to other Defi yield-farming concepts, works in a similar manner. You can earn rewards depending on how many NFTs you staked, the duration of the staking, and the annual percentage yield (APY).

Investors and collectors prefer to speculate and HODL because of the unique nature of NFTs. NFT staking gives them a way to monetize their assets. This could attract more people and increase the market demand for stakable NFTs.

It is similar to staking your bitcoin or ether (ETH) with an NFT. You only need a wallet that supports NFTs. Not all NFTs can be staked for rewards. Different projects have different requirements, so it is a good idea to research your favorite projects before you acquire the NFTs.

Where can I stake NFTs

Play-to-earn is the best way to stake NFTs. MOBOX, Zookeeper are just two examples. NFT stakes are being developed by some projects, including the Binance Fan Token platform and Doge Capital.

MOBOX (MBOX)

MOBOX, a play-to-earn gaming metaverse, combines Defi yield farm with NFTs. It is built on the Binance Smart Chain and allows players to stake NFTs in order to earn rewards with MBOX, its native cryptocurrency.

The MOBOX metaverse can be called MOMOverse and NFTs MOMOverse. The NFT marketplace allows you to purchase, earn, and mint MOMOs. Each MOMO is unique and has its own hash power. You can farm the governance token MBOX by staking unique MOMOs. You can earn MBOX rewards every day by collecting more MOMOs.

These MOMO NFTs are also available on other MOBOX partner platforms. NFTs from partnering projects may also be used on MOBOX. You can stake your PancakeSwap Profile NFTs via MOMOverse, without needing to unstake them from PancakeSwap. You can enter team battles to earn CAKE staking rewards on PancakeSwap and also use them in MOBOX games for MBOX rewards.

Zookeeper (ZOO)

Zookeeper is a DApp that allows you to gamify yield farming. NFT staking is available in liquidity pools with different mascots. Dual farming is possible in all Zookeeper liquidity pools. You can earn the ZOO utility token and the WanSwap Liquidity Provider token (WASP).

You can lock your tokens up to 180 days to increase your APY reward. To maximize your rewards and shorten the time period for your WSLP, you can stake ZooBoosters (NFTs). ZooBoosters are NFT cards that can be purchased in gold chests in the DApp, or by purchasing ZOO tokens.

NFT PowerStation for the Binance Fan Token Platform

Binance is the first cryptocurrency exchange to offer an NFT charging service. Token holders can use the Binance Fan Token Platform to charge NFTs of their favorite teams and earn additional Binance Fan Token rewards. Binance Fan tokens can be used to purchase utility tokens from clubs.

Binance Fan tokens are a way for sports fans to get special club perks. These include exclusive discounts on tickets, limited-edition merchandise, voting rights, and decision-making rights in club matters. This privilege is only available to holders of these tokens.

NFT PowerStation, a new gamification feature on the Binance Fan Token platform, is called NFT PowerStation. Fans can charge the NFTs of the corresponding teams to power up their fandom, and get additional Binance Fan Token rewards. Fans can receive more rewards if they pay NFTs for a longer period of time.

This guide will provide more details on how to earn rewards for charging NFT on the Binance Fan Token Platform.

Closing thoughts

NFT staking is a way for participants to earn extra income from their NFT collections. NFT staking opens up new uses for NFTs that have never been explored before. Although it is too early to predict, we are likely to see new NFT staking opportunities. NFT collectors, as well as those working in the Play-to Earn gaming industry and other areas that use blockchain technology, will benefit.

Henry Hickshttps://nonfungibletalk.com
NFT and Crypto Enthusiast. Loves Travelling and Exploring the Metaverse!
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