How does NFT Staking work?

How does NFT Staking work?

Holders of NFTs can earn passive income by staking NFT in DeFi protocols. People can enjoy income from R Planet staking, or even staking on similar platforms that offer rewards to NFT holders when they lock their Non-Fungible Tokens for a period of time.

NFT staking is the process of locking one's NFTs on a platform and earning rewards in return. In some platforms, staking NFTs is only allowed for those digital assets that were minted in their ecosystem. Others allow people to stake third-party NFTs on their platform.

For instance, NFT holders can stake their third part NFTs on the likes of the R-Planet website to accumulate Aether (AETH). Staking on MOBOX or Zookeeper also comes with benefits. While the user stakes their NFT and earns returns, they still maintain ownership of the NFTs. Some have a stringent lock-up period that can't be broken without a fee. It is crucial to read the fine print of the NFT staking platform before it is used. 

At the moment, NFT staking is in its infancy compared to its counterparts, but it works similarly to them. When the NFTs are locked, the rewards are calculated based on the number of tokens that were staked, the duration of the staking, as well as the APY. 

Generally, people hold NFTs to sell it at an expensive amount in the future. The coming of NFT staking allows them to make an alternative and passive stream of income while they speculate. 

Where to stake your NFTs?

Some platforms allow people to stake the NFTs minted on the platform to earn returns. In other cases, holders can stake third-party NFTs. Some examples of NFT staking platforms are MOBOX, Zookeeper, and R Planet. As always, it is crucial to do your research and read more about their terms and conditions.

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