NFT Staking Explained: How to Earn Passive Income Staking NFTs

NFT staking is a promising subsection of DeFi that potentially solves a number of problems when it comes to NFT trading. Above all, it offers NFT holders a chance to earn tokens from their NFTs without ever having to sell, making it an attractive passive income model.

It’s still early days when it comes to NFT staking but considering how much NFTs are growing, and the utility behind NFT staking, it’s easy to imagine that this practice will only become more common in the future. So without further ado, let’s learn about NFT staking and why it’s worth taking note of. As with staking cryptocurrency, staking NFTs involves “locking up” assets in return for interest or rewards. What is NFT staking?

We previously mentioned NFT staking in our guide on NFT passive income guide but we’re going to go into a bit more depth here.

In essence, NFT staking is when you “lock up” an NFT either through that NFT project itself or on an outside platform. In return for staking an NFT, holders earn what is known as “staking rewards”. Thus, staking NFTs provides a way for holders to earn passive income, and to make money from their NFTs without having to sell them.

Staking is a practice that comes from various cryptocurrencies and tokens, particularly those that use the proof-of-stake (PoS) protocol for confirming transactions (you can read a little more about PoS here ). As with NFTs, staking crypto tokens involves locking up tokens for some time in return for passive income via staking rewards.

For PoS blockchains, staking is the vital function that allows these networks to process transactions and stay secure. In addition, staking rewards for blockchains and Web3 platforms usually come in the form of network transaction fees or interest. Why stake NFTs?

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