NFTs have been the hottest trend in the crypto space for the past two years. As the market expands, NFTs provide new use cases for collectors, in addition to providing ownership of digital collectibles. Today, collectors can earn money with NFTs through NFT participation without selling them.
NFT participation is like an NFT sub-trend that is gaining a lot of ground among investors these days. In this article, let’s take a look at what NFT gambling is, how NFT gambling works, and the most popular NFT gambling platforms.
What is Stake NFT?
NFT staking is a new way to earn money from NFTs by locking them into smart contracts. Holders or collectors can lock their NFTs on staking platforms and get rewards and other privileges. This way, you can earn passive income while still owning your NFTs.
Due to the inherent nature of NFTs, collectors buy, hold, and speculate on the value of NFTs. But, NFT staking allows you to monetize your assets without losing them by selling them. It also increases the demand for NFTs by attracting more investors to participate in NFT staking platforms.
How does NFT Staking Work?
Most blockchain networks today operate on a Proof-of-Stake (PoS) consensus mechanism and rely on a global network of validators who verify transactions and keep the network secure. Validators stake cryptocurrency and verify transactions in exchange for staking rewards. Similarly, you can stake NFTs on a platform and earn fee rewards in exchange for dedicating your NFT to a blockchain network.
NFT staking works in a similar way to DeFi protocols, which allow staking of cryptocurrencies in exchange for rewards. However, NFT staking is still in its early stages compared to DeFi’s yield farming and crypto staking concepts. Different participation protocols work differently and have their own set of rules and reward structures. Some protocols require NFT holders to vote on proposals, while others pay rewards for simply blocking NFTs on their platforms.
To participate in NFT staking, you must first hold the NFTs in a supported crypto wallet. You would then have to submit the NFTs to a staking contract and lock them for a set period. Once NFTs are blocked by the participation platform, you start earning rewards. The reward system changes from one platform to another and depends on several factors.
Currently, you will find most NFT staking opportunities on Play-to-Earn (P2E) metaverse and gaming platforms like Axie Infinity, Decentraland, The Sandbox, Polychain Monsters, Splinterlands, etc. Other engagement platforms involve blocking NFTs in DAO (decentralized autonomous organization) protocols. By blocking NFTs in DAO, you will have the opportunity to participate in the governance of the platform and vote on future proposals.
Staking NFT is not that different from staking cryptocurrency. However, it is important to note that not all NFTs can be wagered like cryptocurrencies. Different participation platforms have different terms and conditions. It is best to check what type of NFTs can be wagered on on your preferred NFT staking platforms.
How much money can you earn with NFT Staking?
When you lock in NFTs on a staking platform, the amount of reward you can earn will depend on several factors such as APY, length of staking, and the number of NFTs staked. It also depends on the platform you use and the type of NFT wagered. However, most NFT betting platforms offer daily or weekly rewards.
When you start betting on an NFT, the betting platform assesses its value based on its rarity and provides an appropriate APY. The rarer your NFT, the higher your APY. Another important factor in determining the value of an NFT is the ability to generate stable income through royalties. Participation rewards will be in the native token of the platform. You can trade these tokens for other cryptocurrencies or fiat on exchanges.
NFT Participation Platforms
Many NFT staking platforms have emerged recently as the demand for NFT staking is increasing among the crypto community. All you need to start betting on NFTs is a compatible crypto wallet. You better start using the most popular and trusted platforms before staking your assets. Let’s take a look at some of the most popular NFT betting platforms.
Splinterlands is a blockchain-based collectible card game built on the Hive blockchain network. It allows players to buy and sell digital cards with unique NFT identifiers. The game features more than 500 cards, which players can collect and use in battles. The native token in the Splinterlands game is SPS (splinter shards). It was set up as a DAO on Binance Smart Chain. Users can stake their SPS tokens to earn rewards, participate in government, and get special offers, bonuses, and promotions. They can also stake NFT cards into liquidity pools so that other games can use the NFT cards.
The NFTX platform is used to create ERC20 tokens backed by NFT collectibles. Users can stake their NFTs in NFTX and mint ERC20 tokens that are fungible at a 1:1 ratio. These tokens are called vTokens and can be wagered for rewards and purchased NFTs from the vaults. Additionally, holders can pool their vTokens in automated market makers (AMMs) to provide liquidity to other users.
Band NFT is the world’s first global NFT music company run by musicians and fans. It is a music NFT exchange platform where users can buy music NFTs and stake them on royalty funds to get a share of the revenue generated from music albums. If the music library grows, the royalty income stream increases for NFT investors.
Polychain Monsters is an ecosystem of cross-chain digital collectibles and games. This is a platform for cross-chain animated NFTs that have different traits and different levels of rarity. These NFTs are also called Polymons and can be acquired from digital booster packs. Holders of these NFTs can stake them and earn weekly rewards in the form of PMON, the native cryptocurrency of Polychain Monsters.
Doge Capital is a collection of 5000 pixel art NFTs minted on the Solana blockchain. Doge Capital NFT holders will get Woof club membership and exclusive benefits. The platform offers a staking program where users can stake these NFTs and earn daily rewards in DAWG tokens. It is the native utility token of the platform and is listed on various exchanges. By staking an NFT, users can get 5 DAWG token rewards per day.
How to create an NFT?
Any digital file can be minted as an NFT on the blockchain. First of all, you need to create digital art or files like images, video clips, music files, etc. A crypto wallet is also needed to pay the transaction fees for minting the digital file into an NFT and to collect the fees after the NFT is sold. It is important to choose a reputable crypto wallet and NFT marketplace with a strong user base before creating an NFT. After creating digital art, you can coin it as NFT and sell it on the market. We will cover a detailed procedure for creating NFTs in upcoming articles.
NFT staking is a great way to make money with NFTs instead of just holding NFTs and waiting for them to increase in value. It is one of the best NFT use cases with high returns. The concept of NFT participation is still in the early stages, but it is gaining a lot of attention these days. So, choose the best NFT betting platform and start betting an NFT today to earn rewards.