NFT Staking A Quick Start Guide to What You Need to Know Before Staking

Staking NFT is similar to the way of proof of rights and interests in cryptocurrency, which is the process of locking digital assets to obtain rewards.

NFT staking brings new opportunities for NFT holders to earn rewards while maintaining ownership of their assets.

Users who hold NFTs within the Bored Ape Yacht Club (BAYC) ecosystem can participate in Binance NFT’s Ape NFT Staking Program to earn daily rewards.

Not sure what to do with non-fungible tokens (NFTs) in your digital wallet? NFT holders can lock their assets on the staking platform to earn rewards without selling collectibles.

NFTs are digital assets stored on the blockchain that possess metadata and unique identifiers that distinguish them from other tokens, making each NFT unique.

In just a few years, NFTs have transformed from a niche technology in the blockchain space to a cultural phenomenon.

As the digital art market has grown into billions of dollars, creators and collectors are exploring new uses for this unique asset class, and one of the many new uses is staking.

Read on to learn more about NFT staking and what you should consider before staking your digital collectibles.

Stake NFTs on Binance

What is NFT staking?

NFT staking refers to locking NFTs to a platform or protocol to earn rewards and other perks.

NFT holders make their idle assets useful without having to sell them.

The way of Staking NFT is the same as Staking cryptocurrency, which can be realized only by Web3 wallet—————.

That said, not all NFTs can be staked.

If you’re considering buying a digital collectible and want to stake it, double check that your preferred Staking service supports the collection before you buy.

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How does NFT staking work?

While NFT staking is relatively new, it works similarly to locking proof-of-stake (PoS) cryptocurrencies.

The main logic behind PoS staking is that participants can lock funds on the blockchain protocol, thereby supporting the network.

Every time a new block is added to the chain, tokens are distributed to validators as a staking reward.

Token holders lock their tokens on the blockchain to help support the operation of the network while making their long-term holdings useful in exchange for rewards.

Users can lock NFT on a platform through NFT Staking and get rewards within a specified time.

One of the benefits collectors and the larger NFT market enjoys through NFT staking is that it can create a deflationary supply pressure, leading to higher prices for similar NFTs still in circulation.

The rewards you can get depend on factors such as the annualized rate of return provided, the Staking period, and the number of Staked NFTs. The type of rewards NFT holders receive depends on the platform used and the type of NFT staked.

Staking rewards are usually issued in the platform’s native token, which can be traded for other cryptocurrencies or cash.

Earn while you play Blockchain gaming platforms are among the most prominent players in the NFT staking space, as the game assets that power games often come in the form of NFTs.

Some NFT projects maintain a decentralized autonomous organization (DAO), and holders can lock their assets in the DAO pool and participate in the governance of the project.

Each platform offering staking will also have its own interest rate calculation method, incentivizing NFT holders to deposit assets for as long as possible.

While some services may offer higher interest rates, it is important to consider the associated risks.

Interest rates that sound too good to be true can be a sign of an unreliable platform.

Be sure to do your own research (DYOR) and make sure you are aware of the risks before depositing an NFT into a staking protocol.

Stake NFTs on Binance

What are the advantages and disadvantages of NFT Staking?

Here are a few factors to consider when determining whether NFT staking is the right choice.

Advantages of NFT staking

Put idle digital assets to work
If you’ve held NFTs for a while and don’t plan to sell them anytime soon, staking is a great opportunity to put idle digital assets to work. You can lock NFT on a staking platform and earn income without giving up ownership.
Get involved in projects and communities
While specific rewards and benefits for staking NFTs will vary from project to project, a common factor is that most projects will use utility tokens to reward users who stake NFTs. These tokens may bring additional benefits (such as voting rights and governance rights) and be able to determine the future direction of the project.

Disadvantages of NFT staking

Potential fraud risk
Although earning income through NFT sounds very attractive, don’t ignore the risks behind it. The NFT industry is still evolving, and in such a new space, it can be difficult to discern who is trustworthy and who is a scammer. It is not uncommon for unscrupulous staking platforms to misappropriate user funds and flee with coins. The best way to avoid falling for potential scams is to do your own due diligence. Do research and investigate staking platforms and the teams behind them: it’s always a good idea to err on the side of caution.
Price fluctuations
During the lock-in period, your NFT value may experience significant rises or falls due to developments in the market and digital art space. Depending on the terms of the staking platform, you may not be able to withdraw NFTs with a longer lockup period. However, if your intention is long-term holding, don’t pay too much attention to the temporary peaks and troughs in the market.

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Can rewards be claimed before the lock-up period ends?

The reward distribution schedule and lock-up period will depend on the platform you are staking on.

Some services offer flexible lock-in periods, while others require you to commit strictly to a pre-agreed period.

Some platforms may reward users daily throughout the staking period, while others may not release rewards until after the staking period is over.

Before deciding to stake your NFTs, it is best to do your due diligence and choose a project that aligns with your needs and goals.

Stake NFTs on Binance

Access Ape on Binance NFT and stake your NFT

NFT owners of Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) can stake their NFT on Binance’s platform through the Ape NFT Staking Program and earn daily ApeCoin (APE) rewards.

The Ape NFT staking project has the characteristics of one-click staking experience, first-class security, and zero gas fees.

It is one of the most convenient ways to stake BAYC or MAYC NFT.

Users can choose to lock their BAYC or MAYC NFT on a current or regular basis for 30, 60 or 90 days.

Additionally, stakers do not need to hold ApeCoin to join the project.

Please note that the daily APE rewards and annualized rate of return (APR) displayed on the Ape NFT staking project page may change daily.

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Conclusion

Participants can earn additional rewards simply by staking idle NFT digital collectibles.

If the NFT project has a DAO, NFT holders can put their digital assets into the pool and play a role in project governance.

NFT staking adds a new use case to the asset class, beyond just collecting.

It may be too early to tell, but Binance is likely to see more new staking opportunities in the NFT space in the near future.

Stake NFTs on Binance