Non-fungible tokens have transformed into a multi-billion dollar market in recent years: As the sector continues on its upward trajectory, buyers and holders are looking for ways to capitalize on their assets – and what better way than through NFT staking? If you are an NFT collector, investor, or simply an enthusiast, you can generate passive income by participating in staking. By putting your idle digital assets to work, you’ll be able to enjoy a variety of benefits. And not just limited to potential passive earnings. In this article, we will discuss the following:
- What exactly is staking in the world of digital assets, and is there any correlation to crypto staking?
- How can I stake my digital asset? Is the staking process for digital assets most beneficial for long-term NFT holders?
- What are the main benefits of NFT staking, and how do I know if it’s right for me?
NFT Staking: How Does it Work?
NFT staking refers to “a process that allows NFT owners to put their digital assets to work on the blockchain.” It is a process that any NFT owner can participate in, depending on the collection platform or protocol they choose to stake their assets in.
- A recent post by MoonPay states: “NFTs have a lot more value than meets the eye.” NFTs have hidden values in their utilities, and the best one of them is staking possibilities. The ability to generate passive rewards is not a benefit that many assets can boast.
- Specifically, staking is a method that NFT owners and collectors can use to lock up their digital assets for a specific period of time (which could be prolonged or not), while simultaneously receiving crypto rewards as their NFT is under lock. It’s an asset loan that generates revenue: you will keep ownership of your NFT while receiving compensation. What does this mean exactly?
- This means that, through staking, NFT owners can make decentralized profits without having to sell their digital asset. In most projects offering NFT staking, the rare and valuable assets generate bigger rewards when they are staked by their owner. Let’s check out how you can stake your NFT and what you should keep in mind before making a decision.
A Profit Mechanism: How Can I Stake NFTs?
Staking is not usually a complicated process. The only thing that NFT owners need to keep in mind is that staking times and rewards differ from project to project. Now, let’s check out how the process works.
- Some collections will give NFT owners the chance to stake their assets for an indefinite amount of time. This lockdown period helps maintain the stability and security of blockchain networks. When crypto holders lock up their assets, they demonstrate long-term commitment, which is essential for the network’s growth and sustainability. This varies from project to project, as others could have strict limits on how long the staking process lasts.
- NFT staking works similarly to processing crypto transactions, through something called proof-of-stake (PoS). To stake your NFT, you will need to ensure that your crypto wallet is compatible with the NFT in question. Once you have placed your NFT on the relevant staking platform, it is then held there via a smart contract on the appropriate blockchain protocol.
- Let’s talk about NFT staking compensation. Needless to say, the longer your NFT is staked, the more rewards you’ll receive – if the chosen project/platform does not have a limited staking time frame. This makes staking especially beneficial for long-term NFT holders.
- Every collection that offers NFT staking will decide its reward rate and amount. Most platforms will offer periodic rewards that are distributed weekly or even daily. These usually take the form of their project’s utility token.
- When our CoinGames NFT collection – Rising Legends – drops, users will have the chance to earn while staking. This is an entirely new benefit that no centralized platform can guarantee. By decentralizing our casino, we offer our users this amazing perk: here’s how it works. Holders of our exclusive NFTs can enjoy the unique ability to stake these digital assets and therefore earn $CGT tokens passively. Essentially, the more NFTs you hold, the greater your staking power, leading to enhanced token rewards that will fuel your crypto gaming adventures.
The Perks of NFT Staking
NFT staking is an easy way for digital asset holders to receive compensation by essentially doing next-to-nothing. This is particularly beneficial for those who plan on holding their NFTs in the long-term.
- However, another major benefit is utility token compensation. These tokens – depending on the specific project – can give the stakers additional perks such as “voting power and governance in the future direction of the project.” For example, when staking a CoinGames asset, you will earn $CGT tokens, which you can in turn stake to earn even more and get other benefits, such as early access to games and tailor-made promotions and tournaments. Doesn’t that sound amazing?
- To learn more about the Rising Legends collection and to better understand how our project’s staking mechanism works, head over to the CoinGames NFT page. On the other hand, if you’re more interested in the gaming side of our project, head over to the CoinGames platform and learn how you will be able to use $CGT Tokens upon launch.
As a reminder: CoinGames’ Rising Legends NFT collection is scheduled for launch on Magic Eden on June 5th. We’ll have two whitelisting events and mint will start after whitelisting.
To secure your place as a member with the maximum benefits, visit Rising Legends’ official website, and claim your whitelisting spot. June 5th will be a crazy day, why wait when you can reserve your whitelist spot now?
