Non-fungible tokens (NFTs) come in all colors and elements. Be it a mutant monkey, aliens, or women of different cultures, NFTs of different kinds have become prominent in the cryptocurrency and blockchain space. Especially community-based NFTs like Bored Ape Yacht Club have managed to become elusive-member clubs offering useability in the real world as well.
This is not all. Many NFT projects have also launched their tokens that offer cryptocurrency-like use cases. Owners can also earn passive income through staking NFT coins. It is just another way to earn profits similar to staking regular cryptocurrencies.
What is Staking?
In the simplest terms, staking is a method of earning rewards for locking in and holding certain tokens or coins for long periods with a project. Speaking technically, staking your tokens means you are actively participating in validating blockchain transactions via Proof-of-Stake consensus or participating in the governance process, or aiding the liquidity of a project. To participate, you must hold the same coins or tokens and deposit them as collateral in the staking pool.
Once a coin or token is staked, one person from the staking pool is chosen randomly to validate a transaction or vote on your behalf in a governance pool. This is the basic idea behind crypto staking. But what about staking NFT coins?
Between staking NFT coins and cryptocurrencies, a major difference remains between their useability.
Staking NFT Coins
Staking NFT coins can yield higher rewards than simply storing them in a wallet. Usually, a major part of these tokens is airdropped to existing NFT owners or platform users. Those who have claimed their tokens may get more than 300% APY (Annual Percentage Yield), which is the annualized rate of return of an investment that includes compound interest growing with the balance/amount.
Here are some projects that have a high APY for staking NFT coins:
LooksRare is a community-first NFT marketplace, which actively rewards its collectors, traders, and creators for participation. LooksRare is a direct competition to OpenSea. The platform also airdropped its LOOKS token to the users of OpenSea.
Currently, staking NFT coin LOOKS will earn you around 503% APY.
The platform offers scalability, speed, and security. More information on this is available on LooksRare website.
The current market price of LOOKS token is $3.74. If you have not been part of the airdrop, you can directly buy the token through leading exchanges like FTX and Huobi Global.
Niftify is an all-inclusive NFT marketplace where anyone can buy, sell, or create limited edition art and collectibles. The platform also verifies every sale on the blockchain to prevent wrongful intentions. Earlier this year, NIFT token was also launched that has an APY of more than 150% (for 7 days).
The high-yielding APY also increases with the increase in the locking period. The users have reported up to 1000% APY for 365 days staking period.
One interesting thing about this platform is that anyone can raise funds for a cause with NFTs. The platform also verifies every blockchain transaction for a secure user experience. You can find more information on Niftify.
If you have missed the airdrop, you can buy NIFT token through exchanges like Gate.io and Bitmart, which is currently priced at $0.1134.
Tokenfy platform aims at making NFT launch processes quick and easy for all. Artists, builders, entrepreneurs, and creators can easily launch their project with a few clicks that require no prior coding knowledge.
Tokenfy (TKNFY) token was recently airdropped to OpenSea users, which is now earning high-yield (eargo, higher rewards). Staking NFT coin TKNFY is earning more than 313% APR.
As Tokenfy automatically deploys a smart contract to a project, all you have to do it choose between different options and then click launch at the end.
If you did not receive the airdrop, the token is exclusively available on Sushiswap. TKNFY currently has a value of $0.02059 while writing.
Earn Rewards By Staking NFT Coins
There are many options through which you can earn rewards on your current token/coin holdings. Since NFTs have continued to be bullish this year even when the market has been taking a breather, it makes complete sense to stake NFT coins for higher rewards.
Besides staking, you can also earn rewards through defi like yield farming and liquidity mining.
Let us know which ones you feel are the best staking NFT coins that we have missed listing here.