What Is NFT Staking? In-Depth Information About NFT Staking


18 August 2022

Most people see non-fungible tokens (NFTs) as digital representations of artworks and collectibles whose value may possibly increase over time. Some NFT initiatives provide a portion of their funds to the community of NFT holders. Typically, they are derived via secondary market sales and royalties.

However, as the NFT industry expands, developers, artists, and collectors are investigating new applications for NFT collections. In staking platforms, the usage of NFTs as utility tokens is one of the most recent applications. In certain gaming metaverses, for instance, NFT collectors may wager their NFTs to enhance their game character’s powers and gain additional prizes.

In today’s bePAY’s post, we are going to explain staking NFT meaning and how it works. Their benefits and drawbacks as well as other information about the NFT staking platform that you could take into consideration. 

What Is NFT Staking?

Staking NFT meaning is a method for putting your unique non-fungible tokens to work on the blockchain. NFTs are often connected with digital photographs, such as the Bored Ape Yacht Club collection, although they may be any kind of object, including digital art, video files, and gaming assets.

Staking nonfungible tokens involves attaching nonfungible tokens to a platform or protocol. In return for this activity, you will obtain incentives for staking. Thus, you may make additional income while retaining ownership of the NFT.

This kind of staking is comparable to decentralized finance (DeFi) yield farming, in which Bitcoins are leased or deployed to liquidity providers in order to receive rewards via interest or transaction expenses borne by others. This method is comparable to earning interest via a bank, except there is no intermediary in this situation. NFT staking pertains to the field of decentralized finance, while banking is a centralized institution.


What is NFT staking?

How Does Staking NFTs Work?

The blockchain system secures assets in a staking pool and then randomly picks miners to validate blocks of transactions by “mining” them – the greater the participant’s mortgage, the greater their likelihood of selection.

When a new block is added to the blockchain, new tokens are produced and distributed as staking rewards to miners. A miner’s staking reward is determined by a number of criteria, including the number of coins staked, the length of time the miner has actively staked, the number of coins staked on the network, token inflation rate, and more.

By staking their currencies and becoming miners, currency holders may activate inactive assets for prizes and passive revenue. The protocol for cryptocurrencies is now safe, and user transactions are verified. Thus, everyone will profit. Users who stake coins maintain control of their assets and may withdraw them from the staking bonus pool at any moment, according to the restrictions and limitations of the crypto protocol.


How does NFTs staking operate?

The exact mechanism is used for NFT staking since the underlying NFT is a tokenized asset. Users may secure NFTs on certain platforms and get rewards depending on a set annual net profit (APY) percentage and the quantity of NFT staked.

As with cryptocurrencies, it should be emphasized that not all NFTs may be staked for rewards. Before receiving any non-financial contribution, you must verify that your selected initiative meets the necessary conditions.

Where To Find The Best NFT Staking Platform?

If you possess a staking NFTs, visit the collection’s website for instructions. Users may stake NFTs from numerous collections on collection-agnostic systems. Top staking platforms include:


WhenStaking is a staking platform for NFTs on Onessus, the DApp developer behind HodlGod and NiftyVille. NFT assets from these games may be staked on WhenStaking to earn $VOID, the platform’s native coin. Both Onesssus and WhenStaking are linked with WAX Cloud Wallet.

WhenStaking incentives vary by NFT rarity, collecting worth, and the platform’s level structure. On WhenStaking, NFTs level up and increase APY as they’re staked. Stakers may still utilize their NFTs as an asset in the game of their choosing by leasing the staked token.


WhenStaking staking platform


NFTX is a liquidity mechanism for buying, selling, staking, and swapping NFTs. Its major attraction is a variation on typical NFT staking that lets users obtain exposure to blue chip NFT projects like Bored Ape Yacht Club and Cool Cats without buying one.

NFTX lets customers acquire fractionalized NFTs in the form of ERC-20 tokens, like Robinhood. The platform is a DeFi protocol that allows customized NFT portfolios. You may “invest” in a project by purchasing tokens reflecting the floor price.

NFTX allows anybody, holder or not, to invest in NFTs. NFT holders may put their funds in a vault to earn interest. Non-holders may buy the ERC-20 token for any NFT project. The collection’s floor price affects the portfolio’s worth.

Suppose you believe in Bored Ape Yacht Club but can’t afford the 73 Ethereum floor price. $BAYC, the project’s token, is a future bet. Now you can invest in NFT initiatives like buying business shares.

NFTX lets users stake NFT-representing ERC-20 tokens and may stake Ethereum-paired NFT coins in pools. When a user trades between the two pairings you’ve pooled, you get a portion of the trading fees.


NFTX staking platform

Consider staking $PUNK, the CryptoPunks NFT cryptocurrency. Provide equal quantities of $PUNK and Ethereum. When someone trades between the two on the platform, you’ll get a weighted proportion of overall network costs, as well as fees when users mint a new NFT or redeem one from the staking pool (both at 5% ).

If you can’t afford Cool Cat or Bored Ape Yacht Club, don’t worry. Purchase NFT tokens via a DeFi app like Sushi. Then, match your choice with Ethereum and bet.

$NFTX token

A native $NFTX coin with governance usefulness is vital to the platform’s functioning and community. Users who hold $NFTX get weighted voting power on project ideas and direction.

NFTX creator Alex Gausman indicated during the ETH Global NFTHack that the token would be used to bootstrap liquidity pools, similar to Bancor or Synthetics. If done effectively, it may make the token’s moat stronger.


NFTX token 

NFTX can make illiquid assets liquid. NFTs aren’t guaranteed to sell. Even if they’re listed at a cheap price, NFTs require a buyer to make an offer. If a project fails, there aren’t many purchasers. NFTX makes NFTs fungible by pegging ERC-20 tokens to NFT collections. You may sell your tokens for other crypto assets at a predetermined price.


LooksRare is staking and NFT marketplace. LooksRare airdropped 120 million $LOOKS tokens in 2022 to attract NFT traders. All OpenSea users who traded over 3 ETH were eligible for the airdrop. LooksRare also rewards traders.

Buy and sell NFTs to generate $LOOKS tokens. $LOOKS may be staked to earn additional $LOOKS and wrapped Ethereum ($WETH).

$LOOKS is an incentive for NFT traders, but it’s also accessible on decentralized exchanges like Uniswap. Shortly after inception, the annual percentage return for $LOOKS staking reached 9000 percent APY but has now bottomed off at a little around 200%.


LookRare staking platform


MOBOX, a blockchain-based game, is another example of an NFT staking platform in action. MOBOX contains a metaverse called the MOMOverse, where many NFTs may be found. You may trade these NFTs on MOBOX’s marketplace, or you can stake them to generate passive revenue. Each MOMO has unique properties, with its hashing power being produced at random.

As a reward for staking MOBOX, you may obtain the governance token from MOBOX. The quantity of rewards is determined by the number of MOMO wagered. Because the rarity of each MOBOX fluctuates, so does the hashing power, which impacts the staked rewards. MOBOX is obviously one of several instances. Popular NFT games like Splinterlands and Axie Infinity provide this feature to NFT holders as well!


MOBOX staking platform

NFT Staking Pros And Cons

NFT Staking Pros

Passive Income

Why not generate passive income if you want to keep your NFTs for the long haul? This approach also applies to consumers who bet on cryptocurrency. While the token’s value may change soon, you may counteract this by acquiring additional tokens.

Community Engagement

Staking reward tokens are not just crypto assets that can be traded for a profit. As with many of the NFT collections described above, native cryptocurrency utility tokens bring extra benefits such as voting rights and project control.

NFT Staking Cons


While your NFT is staked, rugging is always a possibility. This happens if the project’s founders or developers depart. Occasionally, they delegate control to the community, while other initiatives entirely vanish, leaving holders with useless NFTs.

Price Fluctuations

While staked, the value of your NFT might significantly increase or decrease. If you stake an NFT with a lengthy lockup period, you will be unable to sell for a considerable amount of time. If you have always intended to keep an investment for the long term, you may worry less about brief peaks and valleys as you continue to receive income on your investment.


What are the pros and cons of staking NFT?

FAQs About Staking NFTs

How Much May Be Made Using NFT Staking?

When you stake NFTs on a staking platform, the amount of reward you may get is dependent on a number of variables, including the annual percentage yield (APY), the staking length, and the quantity of NFTs placed. It also relies on the kind of NFT staked and the platform used. However, the majority of NFT wagering sites provide daily or weekly payouts.

When you begin staking an NFT, the staking platform determines its value based on its rarity and offers an appropriate APY. The rarity of your NFT will increase your APY. The ability of an NFT to produce a reliable income from royalties is a crucial element in assessing its worth. The staking payouts will be in the native coin of the platform. On exchanges, you may swap these tokens for other cryptocurrencies or fiat currency.

How To Stake An NFT?

In order to stake NFTs, a cryptocurrency wallet that is compatible with the NFT in question is necessary. First, determine if your preferred wallet is compatible with the blockchain on which the NFT resides. Then, you must link the wallet to the staking site in order to transmit your NFTs to the platform.

In order to stake NFTs, a cryptocurrency wallet that is compatible with the NFT in question is necessary. First, determine if your preferred wallet is compatible with the blockchain on which the NFT resides. Then, you must link the wallet to the staking site in order to transmit your NFTs to the platform.


How to stake an NFT?

How Does NFT Staking Differ From Renting?

Grammatically, staking and renting are two separate terms, with the former meaning ‘support’ and the latter meaning ‘borrowing’. However, in the context of cryptography, these names are interchangeable. The fundamental notion underpinning NFT staking and renting is the same, therefore even if they are implemented differently in the majority of protocols, they ultimately strive to accomplish the same objective.

Should You Get An NFT Because It Supports Staking?

If you want to hold for at least a few years, obtaining an NFT to stake may be the best course of action. You might attempt to calculate the predicted yearly yield in relation to the NFT’s purchasing price. While it is impossible to anticipate the future NFT price movement of the collection itself, a chart of your purchase price and predicted profits might indicate if it is a viable investment to buy, hold, stake, or sell the collection.

Where May Speculative NFTs Be Purchased?

You may mint NFTs directly on the project’s main website or purchase them on alternative NFT exchanges, such as OpenSea. Ensure that you only mint, buy, and sell NFTs on official, trustworthy websites. It is simple to fall for NFT and crypto frauds.

Closing Thoughts

The development of play-to-win games has given birth to NFT wagering, and we anticipate that this trend will continue. This implies that you should be able to play crypto games, earn NFTs, and then stake your NFTs to get incentives for maintaining your digital assets on a certain blockchain.

It is an invention that demonstrates how blockchain technology continues to advance, and there is every reason to believe that NFT staking will become much more prevalent in the future. Remember that the value of digital assets such as cryptocurrencies and NFTs might go up and down. And there are no assurances that your investment will provide a return. Consider carefully the next time you purchase NFTs to see whether you can generate passive income by staking your digital assets.