There are a lot of things you can do with NFTs these days. You can sell them, speculate with them, and stake them.
NFT staking rewards is a system where you can lock your NFTs into a smart contract and earn rewards.
With NFTs becoming increasingly popular daily, you can be sure that that kind of solution will gain prominence.
NFT projects are a great way to gain a valuable piece of art or a clip and an incredible way to earn money daily, weekly, and monthly.
So, if you’re interested in passive income, staking NFTs is worth checking out!
- What Is an NFT?
- What Is NFT Staking?
- What Games To Play?
- NFT Staking – Conclusion
What Is an NFT?
NFT, widely referred to as a non-fungible token, is a piece of digital work minted on the blockchain. This way, it gained a digital signature that divides it from the rest of the copies.
In other words, anyone who possesses a piece of digital work that is also an NFT has an original of this work. Those cannot be counterfeited and cannot be falsified, it’s essential to put them on the blockchain forever, and every action taken with that NFT will be available to the public.
If you compare it to the real world of fine art, it will be an original work. In some cases, museums display falsified art just to protect the originals. The same goes with NFTs but with less hassle. You can see a copy online, but the NFT is the only original.
What Is NFT Staking?
NFT staking refers to gaining money from an NFT not only by selling it but in the form of a passive income. It means that if you lock your NFT into a smart contract, which is a way of making deals on the blockchain, you can collect rewards just because you own this artwork.
Proof of Work VS Proof of Stake
To make it a bit more simple (or complicated, depending on how you come about it), with cryptocurrency, it’s pretty simple. To make the currency work, you need Proof of Work, and for that, you need miners doing some great puzzles. It takes a lot of work and computing energy, and with that – it’s not as environmentally friendly as we would like. Also – it costs a lot of money to mine a coin as you need lots of computing power even to get started.
It’s all to avoid attacking the blockchain. If anyone wants to get some shady stuff going on with a blockchain, it will be challenging because it would require an incredible amount of computing power even to get started.
So, another thing you can do is go for the Proof of Stake kind of deal. What does it mean? Well, as we all probably know, if you want to do a blockchain transaction, you must put it on the blockchain. For that, you need additional entities called minters or validators (that would be us in this scenario).
How does this protect a blockchain? Validators or minters need to have tokens that are spread throughout multiple accounts. For that, they get a small fee for each token possessed usually. So, if anyone wants to attack a blockchain, they would need to get most of the spread-out tokens from thousands of users to attack it. It’s almost impossible to do so.
And – it’s much more efficient as it needs little computing power compared to mining.
NFT Staking – Introduction
It works similarly to what we’ve described in the case of cryptocurrency. With millions of users worldwide, you need many validators for staking NFTs as well.
If you decide to stake an NFT on a platform, you can earn rewards and fees for getting your NFT onto the blockchain.
There are many ways that NFT staking work can give you the potential to earn passive income. Of course, there is no universal way of going about it; there are several ideas to resolve this problem, with multiple protocols and sites ready to help you out. We’re going to talk about it at length in this article. But for now, let’s stick to the idea itself.
How NFT Staking Works?
The first thing you need to do is to get a crypto wallet compatible with NFT. Only then can you stake NFTs safely. Then, you have to send your NFT to a staking contract and lock it for a staking period. Only this way you’ll be able to earn a staking reward.
Currently, the best way to go about it is to use Play-To-Earn games. The basic concept is simple. You play the game, get rewards, and then you create a token and make it into an NFT.
Then, those NFTs go into the staking pool, you create a smart contract for the said period, and there you have. You can now lay back and observe money dropping into your account.
In the end, it’s similar to staking cryptocurrencies but on the NFT marketplace. And also – you can play a game while doing it, how cool is that?
How Much Money Can You Make?
So, we’ve talked about fun; now, let’s talk about business. There are hundreds of NFT staking opportunities for you to explore. The NFT market is excellent because it’s still developing, and many opportunities are yet to be discovered.
Remember, not every NFT will bring you stacks, and not every game will be enjoyable. So, with that in mind, let’s see what kind of money you can make with those staked NFT rewards.
Well, It Depends
The most obvious thing in the world is – it depends. On various factors. What kind of game you play, how good you are, and how many rewards and precious items you can turn into NFTs. It is a lot of things to consider.
If you find a reward you want to mint into an NFT, you need to consider some things. First is your annual percentage yield (APY), an interest rate. You should also look into the duration of staking and how many pieces in your NFT collections you want to mint.
In most cases, you can count on daily or weekly rewards for your NFTs. It usually goes like this – you create an NFT, and the platform decides how much your NFT staked is worth. The number will be determined by the factors mentioned above.
But How Much Money Can You Make?!
We’ve looked into data and done some research, but we must tell you – the answer is highly not obvious. NFT marketing, and crypto overall, has some of the most aggressive and overwhelming tactics ever seen in the history of this branch.
Different Folks, Different Strokes
For starters, there is no simple answer because each forum has thousands of ads suggesting one game over another. Second – there is no official list of winners and losers of the games, so you can count on some personal stories or your own experience.
Some say you can get thousands of dollars monthly; some say you get much less than that in the same period.
Most estimates we’ve come across talk about 500$ per month. From what we’ve seen, it seems not as crazy as some of the other estimates and right up the – maybe, maybe alley.
It will probably not be your first source of income, but it can be a bonus. Of course, if you’ll grind enough, you’ll be able to get some severe stacks after a while, but it’s not something for beginners.
It’s essential to know that it’s not an easy-going system where you play a game and then earn some money. In most of those games, you need to put up some cryptocurrency to mint your NFTs.
Your NFT tokens cost real-life money. It’s an investment in some ways, but in others – it may be a detriment to your finances. So, if you want to start gaining passive income in those games, be sure to do it responsibly and with caution.
If you’re under 18, you should avoid this kind of game as it is essentially a form of gambling.
What Games To Play?
And here we are at the essential question – what kind of games are there and what to choose? Depending on your skill set, you may have to pick a few to see which one you feel can benefit you the most. And also – which ones are the most fun to play. After all – it’s playing to earn, not suffer to go by. We’ve also prepared some non-gaming-based NFT staking platforms for you to try something else.
Here are some of the more interesting games to check out.
This is hands down the most-known game when it comes to NFT earnings. It’s an Ethereum-based game created by the Vietnamese studio Sky Mavis. It’s a world full of creatures called Axies. Those are your potential NFTs.
Your job in this game is to collect them, arm and fight with mobs or players in the arena. It’s similar to Idle Heroes if you’ve ever played this game. Anyways, it’s a straightforward and fun game you can get, although you need to invest a bit in it. Pack that can get you started in the game cost about 300 dollars right now.
It was extremely popular in Philipinnes a while back, and some people there even treated it like a regular job. Some with success, some – with less. In the end, it’s a good experience but a bit pricey for a start. If you have enough resources, you can give it a shot!
Meta Cricket League
It’s the world’s first P2E game ever created. And it’s surprisingly addictive! It’s a cricket game, so if you like those quick-action sports games that everyone played back in the day, you’ll love this one.
And it’s pretty easy when it comes to pricing. Every NFT costs 25$ (at least it was that when they released it). You need 2 to start playing – a batter and a bowler.
It’s a fun little game and not that expansive, for starters. In-game, you collect different NFTs, rewards, better bats, and collectibles. Those can be worth a bit more, depending on how rare and valuable in the game they are. It’s pretty much like every other game.
The game rewards NFT holders with additional prizes for winning tournaments, so if you get good at the game, you can make some extra money in the end!
Pirate X Pirate
And as an internet pirate, as you probably are, you can also become one in the crypto world! Pirate X Pirate is an entertaining game that is all about pirates. In this dice-based game, you get to fight with other ships where luck is not everything.
You can build your ship, battle other players, and then – sell your NFTs on the internet. It’s the same story as all the other games – depending on the rarity – you can gain more money from it. If you have some basic stuff, you can also sell it for less money.
It’s a fun little action game, you can get addicted to it after a while, and it’s not that demanding. It has an in-game cryptocurrency that you can trade with pirate gold.
This game is predicted to be the next big thing, so buckle up! RobotEra is a sandbox game that takes place in a universe full of, well, robots.
You are one of them. The token you need to get in this game is your avatar. The central concept is space exploration; you build a lot, mine for resources, and get additional robotic help if you need some of it. It’s a Minecraft among Play2Earn kind of game.
It’s a metaverse style of game, so you can see a lot of potential in it when it comes to getting some great NFTs.
Worth checking out!
Calvaria is a game that many people deem to be one of the more “fun” games to play to get tokens. It is, after all, a very colorful and exciting carding game that you can appreciate after playing for a while.
You must build your deck and fight with your opponents to earn some precious NFTs. The better you are at the game, the better cards you can get. And – the better money you can make from it.
There is also a lot of customization and potential to get some rare NFTs.
It’s another blockchain-based card game. You can get some great cards out of the 500 available. It’s fun, it’s cute, and it’s addictive. Of all the games mentioned on this list, this one takes the cake regarding the whole gameplay aspect.
There is just a lot of stuff to do in it! You get a lot of cards you can battle your opponents with; you have a lot of possibilities because the gameplay is at least thought through, and you don’t feel this nagging feeling that you’re only doing this for money. It feels more immersive in some ways, for sure.
This is an exciting project. It changes your not-liquid NFT into a fungible ERC20 Token. You deposit your NFT and create an ERC20 token that can be staked to get rewards and purchase other tokens from the vault of NFTs.
ERC20 tokens are called vTokens.
It’s the real-life money Pokemons! Depending on how rare your Polymons are, you can get them for different prices.
As in the case of Pokemon, you can get your Polymons in digital booster packs. You can stake them for weekly awards or sell them at the marketplace.
It’s an NFT staking platform for all the people who always wanted to play Pokemons for some real cash!
This is something completely different. It’s an NFT company run by musicians. You can get NFT music on in, and, as in the case of real-life music, “staking” gets royalties from every play.
And, as it is in real life, some artists are upcoming stars, and some are flops. You invest in their future with your money so you can be the next great publisher!
NFT Staking – Conclusion
Thank you very much for checking out our article! In conclusion, NFT staking is an exciting world full of opportunities and possibilities. The best thing about it is that you can earn passive income from your NFT collectibles while also having fun!
Some of those games are interesting, and we couldn’t recommend checking them out more! As we also stated before, be sure to play those games you need to pay for with caution, as some of them can be expensive for starters.
Remember, every staking program has advantages and disadvantages, so read the fine print whenever you invest your hard-earned money.
It is similar to cryptocurrency staking, but the NFT market is a bit more fresh, so some things in your NFT collection may lose value after a few months, days, or even hours.
Proceed with caution. See you in the following piece!
SEO specialist with over four years of professional experience. A/B test and Data-Driven SEO enthusiast. In his work, he focuses on the development and implementation of a strategy that achieves predetermined, specific goals. Privately, a fan of mountain biking.