{"id":37738,"date":"2022-08-26T19:09:58","date_gmt":"2022-08-26T16:09:58","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=37738"},"modified":"2025-08-29T20:39:35","modified_gmt":"2025-08-29T17:39:35","slug":"nft-staking-what-it-is-and-how-it-works","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/nft-staking-what-it-is-and-how-it-works\/","title":{"rendered":"NFT staking: what it is and how it works"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Key points<\/h2>\n<ul class=\"wp-block-list\">\n<li>Staking<a href=\"https:\/\/forklog.com\/en\/news\/what-are-nfts\"> non-fungible tokens<\/a> (NFTs) is a way for holders of digital items to earn passive income.<\/li>\n<li>The mechanism applies to specific NFTs used in a decentralised application\u2014such as a metaverse or a game. To earn, an NFT is typically locked in a dedicated pool. <\/li>\n<li>There are dedicated platforms that allow staking of any liquid NFTs in pools.<\/li>\n<\/ul>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">NFT staking: what it is and how it works<\/h2>\n<p>Strictly speaking, staking non-fungible tokens is not staking in the usual sense, because NFT holders do not perform <a href=\"https:\/\/forklog.com\/en\/news\/what-is-staking-and-how-to-make-money-from-it\">useful work towards blockchain consensus<\/a> under a Proof-of-Stake system. <\/p>\n<p>NFT staking is a financial arrangement: users receive rewards from the developers of a given decentralised application for using or locking tokens in it. In effect, NFT staking is an incentive for users and an extra carrot for digital-item owners.<\/p>\n<p>NFT staking resembles <a href=\"https:\/\/forklog.com\/en\/news\/what-is-yield-farming\">yield farming<\/a> in <a href=\"https:\/\/forklog.com\/en\/news\/what-is-decentralised-finance-defi\">decentralised finance<\/a> (DeFi), where users earn tokens for supplying liquidity or other activity.<\/p>\n<p>Not every NFT can be staked\u2014rewards typically accrue only to certain items within a specific blockchain game or other application.<\/p>\n<p>In GameFi, staking-and-reward mechanics are most common\u2014unsurprising, as many decentralised games follow a play-to-earn model.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Where NFT staking is used<\/h2>\n<p>Whatever the mechanism for earning by \u201chodling\u201d an NFT, holders usually receive payouts in the project\u2019s tokens. The exact terms depend on the platform, promotion, the NFT\u2019s \u201crarity\u201d and other attributes.<\/p>\n<p>In spring 2022 the developers of <a href=\"https:\/\/forklog.com\/en\/news\/what-is-axie-infinity-axs\">Axie Infinity<\/a> introduced a new type of digital item\u2014virtual land as NFTs. After purchase, it can be <a href=\"https:\/\/stake.axieinfinity.com\/land\/\" target=\"_blank\" rel=\"noreferrer noopener\">locked for staking<\/a>.<\/p>\n<p>In the third \u201cseason\u201d, which <a href=\"https:\/\/medium.com\/sandbox-game\/the-sandbox-alpha-season-3-21b1df143aa6\" target=\"_blank\" rel=\"noreferrer noopener\">began<\/a> in August 2022, the developers of <a href=\"https:\/\/forklog.com\/en\/news\/what-is-the-sandbox-sand\">The Sandbox<\/a> also offered rewards to holders of NFT collections tied to the event.\u00a0<\/p>\n<p>The MOMOverse gaming metaverse lets users earn MOBOX tokens for staking NFTs on the platform. Rewards for staking digital items are available in popular games such as Splinterlands and Alien Worlds.<\/p>\n<p>The Band Royalty NFT marketplace lets buyers acquire musician-issued NFTs and place them in \u201croyalty pools\u201d, receiving the BSTAGE governance token in return.<\/p>\n<p>NFT staking is gradually spreading to leading crypto projects. In May 2022 the DAO of the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-apecoin-ape\">BAYC<\/a> metaverse approved integration of the mechanism. Proposal <a href=\"https:\/\/forum.apecoin.com\/t\/aip-21-staking-process-with-caps-1x-drop-process\/5074\" target=\"_blank\" rel=\"noreferrer noopener\">AIP-21<\/a> provides rewards in ApeCoin (APE) for those who deposit NFTs into a dedicated liquidity pool.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">How to earn by staking NFTs from popular collections<\/h2>\n<p>An unusual approach to NFT staking is used by <a href=\"https:\/\/nftx.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">NFTX<\/a>, a platform for minting <a href=\"https:\/\/forklog.com\/en\/news\/what-are-erc-20-tokens\">ERC-20<\/a> tokens backed by NFTs. Any liquid collection can serve as collateral, including marquee sets such as <a href=\"https:\/\/forklog.com\/en\/news\/what-are-cryptopunks\">CryptoPunks<\/a> or BAYC.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"531\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/staking-nft-1-1024x531.png\" alt=\"\u0427\u0442\u043e \u0442\u0430\u043a\u043e\u0435 \u0441\u0442\u0435\u0439\u043a\u0438\u043d\u0433 NFT?\" class=\"wp-image-183009\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/staking-nft-1-1024x531.png 1024w, https:\/\/forklog.com\/wp-content\/uploads\/staking-nft-1-300x155.png 300w, https:\/\/forklog.com\/wp-content\/uploads\/staking-nft-1-768x398.png 768w, https:\/\/forklog.com\/wp-content\/uploads\/staking-nft-1-1536x796.png 1536w, https:\/\/forklog.com\/wp-content\/uploads\/staking-nft-1.png 1598w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption>Yield table for various NFT pools. Source: <a href=\"https:\/\/yield.nftx.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">NFTX<\/a><\/figcaption><\/figure>\n<p>A user deposits their NFT into NFTX\u2019s shared \u201cvault\u201d (pool) for staking and then receives regular vToken payouts. These are funded by fees the vault collects for operations involving stored NFTs. Each pool has its own token.\u00a0<\/p>\n<p>If, when locking the NFT in the vault, the owner also adds Ethereum (ETH) to the pool, rewards increase severalfold.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Pros and cons of NFT staking<\/h2>\n<p>Putting digital items into staking is straightforward. However, rewards are often tied to in-game mechanics, so for better results it pays to understand the economy and gameplay of a given blockchain game.<\/p>\n<p>The obvious advantage is added value via the prospect of passive income. Reward tokens also often have utility, such as voting on proposals in the <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">project DAO<\/a>.<\/p>\n<p>On the other hand, while an NFT is staked it may rise or fall sharply in price, yet the holder cannot sell because of the lock-up. And placing an NFT worth tens or even hundreds of thousands of dollars in a third-party smart contract, rather than a personal wallet, exposes assets to additional risk.<\/p>\n<\/div>\n<div class=\"wp-block-text-wrappers-cards single_card\">\n<h2 class=\"card_label\">Further reading<\/h2>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/how-to-mint-an-nft-for-free-a-step-by-step-guide\">How to mint an NFT: everything you need to know<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-web3\">What is Web3?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-liquid-staking\">What is liquid staking?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-governance-token\">What is a governance token?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-are-cryptopunks\">What are CryptoPunks?<\/a><\/p>\n<p><a href=\"https:\/\/forklog.com\/en\/news\/what-are-bitcoin-futures\">What are bitcoin futures?<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>NFT staking\u2014what it is, how it works and where it is used, explained.<\/p>\n","protected":false},"author":1,"featured_media":37739,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"2","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[2113],"tags":[2129,2121,1289,1213],"class_list":["post-37738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptorium","tag-101-nfts-and-the-metaverse","tag-101-staking-and-mining","tag-cryptocurrency-staking","tag-nft"],"aioseo_notices":[],"amp_enabled":true,"views":"95","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=37738"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37738\/revisions"}],"predecessor-version":[{"id":37740,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/37738\/revisions\/37740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/37739"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=37738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=37738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=37738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}