March 31, 2023
By Murtuza Merchant
NFT staking platforms have become essential components of numerous NFT-based businesses and marketplaces due to their high demand.
Understanding NFT Staking
NFT staking involves depositing NFTs on a platform in return for stake payouts and additional benefits. It enables NFT owners to derive value from their collections while retaining complete control.
Through NFT staking, collectors can now generate income from their NFT holdings. HODLers who own NFTs can invest in decentralized finance (DeFi) systems, which facilitate earning a regular income without any additional effort. DeFi applies the decentralized concept of blockchain to the world of finance, allowing users to receive rewards without having to sell or relinquish control of their collections.
Top 5 NFT Staking Platforms
Splinterlands is a collectible card game that uses blockchain technology to allow players to build unique decks of cards with varying abilities and attributes. The game’s native token, SPS (Splintershards), operates on the Binance Smart Chain as a DAO. Players can use SPS tokens to bet on ranked battles, liquidity pools, and DAO voting pools.
NFTx allows users to create tokens backed by NFT collectibles. By depositing NFTs into an NFTx vault, an ERC20 token is generated, making the tokens interchangeable and fungible. These vTokens can be used to obtain specific NFTs from a vault or staked for rewards. Additionally, vToken holders can pool their tokens to create a liquid market for trading.
Band NFTs is revolutionizing the music industry by empowering producers to have more control over distribution. Users can purchase NFTs and stake them in royalty pools to earn a share of the revenue generated from their songs or albums in an NFT market.
Doge Capital issued 5,000-pixel art NFTs on the Solana Blockchain. By staking with Doge Capital, NFT investors receive daily DAWG tokens. Doge Capital’s utility token, DAWG, can be purchased on the Dexlab and Raydium exchanges.
Polychain Monsters is a blockchain-based platform for animated non-playable NFTs called Polymon. Polymon features various traits and rarities, with some highly sought-after pairs. Polychain Monsters’ native cryptocurrency, PMON, is available to Polymon holders who stake their NFTs.
Is NFT Staking Worth the Investment?
NFT staking is still in its early stages, and liquidity remains a challenge due to the nascent nature of the ecosystem. However, the buzz around NFTs has attracted newcomers interested in exploring NFT platforms and claiming rewards.
If Ethereum successfully transitions to a proof-of-stake (PoS) system with Ethereum 2.0, NFT staking could see significant growth. Nevertheless, NFT staking already has a solid foundation with promising results.
The Future of Staking Platforms
NFT staking enables gamers to profit from their collections and introduces previously unexplored use cases. It is likely that more NFT staking opportunities will emerge soon, especially for those in the play-to-earn gaming industry and other blockchain-based sectors.
Developing NFT staking platforms presents a lucrative opportunity for new businesses. With technological advancements, these platforms have the potential to generate substantial revenue. By providing rewards based on staked assets and maintaining transparency, NFT staking platforms can build trust and secure a prosperous future.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blcockchain and cryptocurrencies.