NFT Staking Platform Software

Along with increasing popularity, new use cases of non-fungible tokens on top of the art appear in the industry. One is NFT staking, through which NFT holders can receive income by putting their idle NFT collections to work. NFT staking refers to locking up NFTs on a blockchain network and earning rewards. Mainly, the function is available on blockchain platforms using the Poof-of-Stake consensus mechanism, like Ethereum, Binance Chain, Tron, and others.

NFT staking is similar to DeFi yield farming, which allows cryptocurrency holders to earn income by lending or staking their assets. How much they will earn depends on several factors such as the set annual percentage yield (APY), the number of cryptocurrencies or NFTs staked, their value, etc. Staking assets minimizes their supply, and due to growing demand, they increase in price.
To stake NFTs, users need to lock them in a staking liquidity pool or send the assets to a cryptocurrency wallet. Each platform has its terms of use and rewards mechanism.

Staking cryptocurrencies is a process through which blockchains based on the Proof-of-Stake consensus mechanism confirm transactions. It secures the network, allowing token holders to earn rewards. However, it's essential to take into account that not all tokens support the staking function, and each platform has its role in staking. Usually, token holders provide their assets to staking pools. They earn staking rewards as the blockchain puts the assets to work. Providing collateral, token holders take part in the production of new blocks. In lots of cases, token owners get returns in the native cryptocurrency of the platform on which they contributed their assets.

Apart from staking, there are other ways to earn money through NFTs. Among them are NFT royalties, earning income participating in NFT DAOs, and just by creating or buying an NFT and selling it at a profitable price. Through NFT royalties, creators of non-fungible assets earn returns every time an asset sells. For instance, when an artist mints an NFT and lists it in the marketplace, they will receive some percentage of the sales. Some staking platforms use a decentralized autonomous organization (DAO), in which NFT holders lock up their assets and share ownership rights. It means that members hold a fraction of an NFT and decide how to control it.