NFT staking is a new way of earning passive income in the crypto world by basically locking your crypto assets in DeFi platforms to receive awards. All without the need to sell your NFT collection.
Similar to DeFi yield farming, NFT staking relies on a Proof-of-Stake (PoS) mechanism to reward users. By locking up NFTs, users can receive rewards based on the annual percentage yield (APY) and the number of NFTs staked.
NFTs or Non Fungible Tokens are tokens that are used to represent ownership of unique items. They allow us tokenize things like art, collectibles, even real estate. NFTs can only have one official owner at a time and they are secured by a blockchain, thereby making it impossible for anyone to modify the record of ownership or copy/paste a new NFT into existence.
NFT staking basically refers to the locking up of NFTs on a platform or protocol to receive staking rewards and other privileges. This allows NFT holders to earn a passive income while still having ownership of their NFTs. NFT staking opens up a new opportunity of NFT investors and collectors to monetize their assets.
Most NFT staking opportunities come from play to earn games. MOBOX is an example.
MOBOX (MBOX)
MOBOX is a play to earn gaming metaverse that combines DeFi yield farming with NFTs. Built on the binance smart chain, it allows players to stake NFTs to earn rewards in its native cryptocurrency, MBOX. The main idea behind the project is to offer a way for users to earn rewards in exchange for their engagement and enjoyment.
The MOBOX platform can be broken down into three different parts:
NFT Marketplace: A decentralized marketplace where users can trade, lend, and rent NFTs in the MOBOX metaverse. There are options to buy non fungible tokens in bundles as well as trade them without stopping your farming or staking activity
Blockchain Gaming Platform: This is the primary place to play blockchain games of indie developers in the MOBOX ecosystem. A user can play three free-to-play-to-earn (FTPTE) games that reward users for active engagement and participation
MOMO Farmer: MOMO Farmer is probably the most important solution in the ecosystem that makes MOBOX stand out. As the ultimate yield farming hub of the MOBOX metaverse, you can stake the native MBOX token and other cryptocurrencies as well as supply liquidity to pools (called crates) to earn both (fungible) coin and NFT rewards.
With it combining free-to-play games with the play-to-earn model, MOBOX offers several ways for players to earn MBOX tokens:
Players can stake unique MOMO NFTs to mine tokens( each NFT has a specific amount of hash power, which determines the rate of rewards)
Lending NFTs to other players in exchange for MBOX
Playing blockchain games on the platform
Earning MBOX through yield farming via MOMO Farmer
At the same time, players can win NFTs and other cryptocurrencies by participating in BOX raffles, lotteries and other events hosted by MOBOX and its partners.
NFT staking allows participants to make an extra income from their idle NFT collections. At the same time, NFT staking is creating new use cases for NFTs that were never explored before. And also helps players of play-to-earn games on the blockchain earn rewards for their engagement and participation.