Quote from Paul Ugbede Godwin on September 25, 2022, 11:18 AM

NFT staking is a new way to generate passive income in the crypto world. It allows NFT holders to lock their assets onto DeFi platforms to receive rewards. All without the need to sell their NFT collections.

As with DeFi yield farming, NFT staking relies on a proof-of-stake (PoS) mechanism to reward participants. By locking NFTs, users can receive rewards based on annual percentage yield (APY) and the number of NFTs staked.

Crypto-economics mean nothing without ownership, proper incentives, + economies. This has also brought out some other very serious questions we have to ask about with DeFi. How do you go about building multi-chain dapps while incentivizing government participation and users of the protocol.

To some NFTS may appear to just be JPEGs, but these digital assets have the potential to transform every industry, from event ticketing to digital art and physical goods. The hidden value of NFTs lies beneath the surface in their intrinsic utility, and that’s something that can’t be captured with a screenshot.

Just like in Defi and Liquidity Pools one can stake and earn rewards on some certain NFTs, which allow you to pair equal amounts of tokens in swapping pairs to earn a percentage of total network transaction fees. 

Most NFT staking opportunities can currently be found on P2E game and metaverse platforms like Axie Infinity, Decentraland, The Sandbox, Polychain Monsters, and Splinterlands. Others use Decentralized Autonomous Organizations protocols to protect NFTs for use by stakeholders. If you lock NFTs in DAOs, you can participate in the platform’s governance and vote on future proposals.

The most basic way to earn interest on your Cryptos and NFTS is by staking it for a determined lockup period in order to earn more coins, more like earning interest on your funds at a traditional bank. If you own an NFT eligible for staking, you can check the official collection website for complete instructions on how to stake it.

Based on rarity of an NFT, staking platforms reward you based on how much you stake. NFTs are rare when your APY is higher. For example, if you own a SpaceRider NFT, You can claim a passive emission of the utility token $STAR just by owning a rider. There is no staking, but you also no value in $STAR unless you own a rider. The utility drives the value, not an artificially locked supply.

Creating a coin and tokenomic that works and doesn't collapse on itself is an immense challenge in itself. Very few, if any (debatable) have succeeded. Unless you're hiring economists, you shouldn't be making tokenized staking. NFT Staking can be used to identify committed members and reward them accordingly.

1 staked NFT = 1 not listed NFT
-> the individual is currently not planing on leaving the community.

It’s up to the project to use this information productively, for most projects NFT Staking is a top signal, it just reduces selling pressure, But low selling pressure doesn't automatically increase prospective buyers or value!