Disclaimer: This article is for educational purposes only. Binance is not affiliated with or endorses these projects. The information provided through the Binance platform does not constitute investment or trading advice or recommendations. Binance is not responsible for any investment decisions you make. Please seek professional advice before taking financial risks.
Disclaimer: This article is for educational purposes only. Binance is not affiliated with or endorses these projects. The information provided through the Binance platform does not constitute investment or trading advice or recommendations. Binance is not responsible for any investment decisions you make. Please seek professional advice before taking financial risks.
Summary
NFT staking is a new way to earn passive income in the cryptocurrency space . Holders can lock NFT assets in decentralized finance (DeFi) platforms to earn rewards, all without selling their NFT collections.
Similar to DeFi liquidity mining, NFT staking relies on a proof-of-stake (PoS) mechanism to reward participants. After users lock the NFT, the rewards they receive will be calculated based on the annual yield (APY) and the number of pledged NFTs.
As far as individual investors are concerned, since the overall supply of NFT is usually low, the staking returns are considerable. But in a broader context, NFT staking has long transcended the meaning of digital art collections, and NFT has ushered in new use cases.
Most people believe that non-fungible tokens (NFTs) are digital works of art and collectibles, which will appreciate in value over time. Some NFT projects will share revenue with the NFT holder community, and the revenue mainly comes from secondary market sales and royalties.
The NFT market continues to grow, with developers, artists, and collectors exploring new use cases for their NFT collectibles. The most representative novel use case is the use of NFTs as utility tokens for staking platforms. For example, NFT collectors stake NFTs in certain game metaverses to improve the skills of game characters and earn additional rewards.
As the name suggests, NFT staking refers to the method of locking NFT on a platform or protocol to earn staking rewards and other privileges. NFT holders can also earn passive income while enjoying NFT ownership.
NFT staking is still in its infancy, but the operational concepts of liquidity mining in other decentralized finance (DeFi) are similar. After users lock the NFT to the platform, the rewards they receive will be determined by the annual yield (APY), the length of the pledge, and the number of pledges of the NFT.
Due to the special nature of NFT, investors and collectors usually choose long-term holding and speculative trading, and NFT staking provides them with new opportunities to monetize assets, which can attract more people to participate and increase the market's interest in staking. Demand for NFTs.
Staking an NFT is similar to staking Bitcoin (BTC) or Ethereum (ETH). Just prepare your cryptocurrency wallet to start your NFT journey. However, not all NFTs can be staked to earn rewards. Specific requirements vary by project, and it is best to verify the requirements of your chosen project before purchasing an NFT.
As of December 2021, most NFT staking is achieved through play-and-earn games. "MOBOX" and "Zookeeper" are typical examples. Some projects are also developing NFT staking functions on their own platforms, such as the Binance Fan Token Platform and Doge Capital.
"MOBOX" is a decentralized finance (DeFi) liquidity mining The play-and-earn game metaverse that combines mining and NFT is created on the Binance Smart Chain platform. Users can earn MBOX, its native cryptocurrency, by staking NFT.
The MOBOX metaverse is called "MOMOverse", and the NFT is named "MOMO". MOMO can be minted, earned or purchased through the NFT market. Each MOMO has different attributes and has randomly generated hash power. By staking unique MOMO, you can mine the governance token MBOX. The more MOMO you collect, the more MBOX rewards you earn every day.
MOMO NFT can also be used on MOBOX’s cooperation platform, and NFTs from cooperation projects can also be used on MOBOX. For example, a user's PancakeSwap avatar NFT can be used directly in MOMOverse without unstaking it from PancakeSwap. In this way, you can not only earn CAKE staking rewards in PancakeSwap team battles, but also earn MBOX rewards in MOBOX games.
Zookeeper is a gamified liquidity mining DApp that can convert NFT Pledge to different liquidity pools, each with its own exclusive mascot. All Zookeeper liquidity pools support dual mining mechanisms, and users can earn ZOO utility tokens and WanSwap Liquidity Provider (WASP) tokens as rewards at the same time.
To increase annual yield (APY) rewards, users can lock their tokens for a period of up to 180 days. In addition, staking "ZooBooster" NFT can maximize rewards and shorten the lock-in period of WSLP. The NFT card ZooBooster can be obtained by purchasing the gold treasure chest in the DApp or staking ZOO tokens.
Binance is the first cryptocurrency exchange to offer NFT staking services . Token holders can stake supporting NFTs of their favorite teams on the Binance Fan Token platform to earn additional Binance Fan Token rewards. Binance Fan Tokens are utility tokens issued by major sports clubs.
Sports fans who hold Binance Fan Tokens can receive exclusive club benefits, such as exclusive discounts on tickets and limited-edition merchandise, as well as voting and decision-making rights on club matters that are exclusive to token holders. .
NFT PowerStation is a unique and innovative gamification feature of the Binance Fan Token platform. Fans can pledge supporting NFT to the NFT PowerStation of the corresponding team to support their fandom and receive additional Binance Fan Token rewards. The longer fans stake NFT, the higher the fan rewards they will receive.
To learn more about how to stake NFTs on the Binance Fan Token platform to earn rewards, please read this guide.
Participants only need to pledge idle NFT collections , you can earn extra income. Moreover, staking gives NFT unprecedented use cases. Perhaps it is still early, but we can foresee that NFT staking will also bring new opportunities, not only to NFT collectors, but also to the entire play-to-earn game industry and other industries powered by blockchain technology. field.
Disclaimer: This article is for educational purposes only. Binance is not affiliated with or endorses these projects. The information provided through the Binance platform does not constitute investment or trading advice or recommendations. Binance is not responsible for any investment decisions you make. Please seek professional advice before taking financial risks.