What is Staking in NFT in the world of crypto?
The acronym NFT stands for Non Fungible Tokens, which represents the ownership of tangible and intangible assets in a digital cryptographic format. Such assets may represent anything from the ownership of house, physical paintings, digital art, and even in-game items and many more. Put another way, NFTs allow to tokenize real world assets and claim their ownership through the blockchain.
In the previous article,, I have already explained how to make money or profit from NFT. But this time, I will explain to you how to make money through Staking NFT. Before that, let me explain the simple meaning of “Staking” in the world of crypto. In short, you locked your crypto to get rewards.
Back to NFT, how can we make money or profits from NFT Staking?. Before that, as we all understand, NFTs are essentially tokenized assets. So just like any tokenized asset, that takes care of their safekeeping and governance. Yes, that’s right, you can stake tokens in a value-creating crypto project.
So, why don’t you Stake tokens that have asset value to be used as potential generate more income, right?. You must be thinking, what incentives can you get from the platform you choose. The opportunity to generate income or profit from a platform that can provide incentives based on the unique value of your NFT.
Once the NFT or tokenized asset is transferred to the “Staking Platform”. Then the asset can be determined tokonomically . What does tokenomic mean?. Tokenomic is from two words: Token and Economic.
So, tokenomics is basically token economics or crypto economics. Once an annualized yield (APR) is established the tokens could be staked and the delegators would be able to claim block and fee rewards. If you want to know the level of Staking Rewards would be determined by various factors. Including the NFT asset’s capacity to develop an income stream such a royalties.
Currently, crypto investors searching for the best staking crypto rewards can earn an APR of up to 100% - sometimes much more!. The point here is that the process of staking will help to attract crypto investors and boost much needed NFT liquidity, which in turn, expedite the development of the NFT ecosystem.
The concept of NFT Staking is currently still in its infancy although there is already some experimentation occurring. Whatever you do, make sure you know and due diligence in every project you are involved in.
Reference: https://youtu.be/r9U5XB2NUIg
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