What is NFT Staking?

With the rise of Blockchain Technology, the NFT market has become one of the most recent and most advanced technologies embedded in the distributed ledger network. The popularity index of Non-Fungible Tokens has exponentially sprouted to a market capitalization of just over 2 billion dollars and a 24-hour trading volume of 4.6 million dollars at the time of publication. NFT staking has reinforced this rapid growth as investors, and NFT fans can now earn passive income on their staked NFTs.

The Problem is Solved

Staking the blockchain-based cryptographic tokens solves a significant problem in the NFT markets. While digital art and collectibles are such a great idea, they initially did not generate cash flow for the owners and investors until recently. NFT owners had to rely entirely on NFT ‘capital gains’ to skyrocket NFT prices higher. In comparison to the sister technology of digital currencies, users can stake cryptocurrencies to earn a reward afterward. Finally, the problem is solved.

The Sense behind NFT Staking 

NFT staking works similarly to the savings analogy in the current financial banking ecosystems. In the banks, users deposit funds in locked savings accounts where the funds become illiquid for the locked period stated before the deposit. At the end of the period, the amount of fiat deposited generates a consistent amount of income. Staking NFTs involves NFT owners. 

It is, however, unfortunate that not all NFTs can be staked. Investors who want to buy NFTs with the sole intention of staking must intensively do due diligence to ensure that the NFTs they purchase can be staked.

Generally, staking NFTs can be achieved in various ways, but the most common way is using Smart Contracts. Staking the cryptographic art and collectibles happens in two ways: investors and NFT owners send Non-Fungible Tokens to a Decentralized Finance platform and staked using smart contracts. Consequently, the owners receive rewards based on the protocol system where the NFTs are staked. The tokenized benefits generated from the staked NFT may be in the form of a Token or another NFT collectible.

Types of Cryptographic Staking

Like cryptocurrency staking, NFT staking exists in two forms; Flexible Staking and Locked Staking. Some NFT staking platforms offer flexible NFT staking at an annualized percentage return. This staking method allows investors and NFT owners to withdraw their staked digital art and collectibles anytime.

Other staking platforms offer locked staking services. Using these platforms, the staked NFTs become illiquid and inaccessible to the owner until the staking period is over. The rewards are credited on the last day of the staking period. If a withdrawal is initiated before the staking period elapses, the NFT owner does not get any rewards.

How Much Money Can You Make Staking NFTs?

Upon locking NFTs on any staking platform, the reward is paid out as a digital token or an NFT. Most staking platforms will issue the rewards in the platform’s native token that NFT holders may exchange for other cryptocurrencies or tokens on digital asset exchanges. The amount of compensation an NFT owner earns depends on various factors. Some determining factors affecting NFT deposit yielding amounts include; the Annualized Percentage Yield (APY), the staking period, the number of NFTs staked, and the rarity value of each NFT staked.

The amount also depends on the platform used to stake the scarce tokens. As stated earlier, there are no standard rates regarding the staking of NFTs, making different individual platforms have different reward rates. Most staking platforms offer daily and weekly rewards based on an annualized percentage yield. This calculation is the same one used to calculate tips on staked cryptocurrencies.

The Rarity Yield Computation and Royalty Yields

Once a user deposits an NFT on a staking platform, the platform has an inbuilt rarity calculation mechanism that automatically evaluates the exact value of the NFT. The evaluation is essential as it aids in providing a suitable Annualized Percentage Yield. The more unique the NFT is, the higher the annualized percentage yield. Another critical factor in determining the value of the NFT is the capacity of the digital token to generate consistent income through royalty rights.

NFT Staking Platforms to Consider

Staking the sentimental blockchain-based art and collectibles is a relatively new concept yet to gain massive traction from cryptocurrency and blockchain aficionados. Due to its recency, NFT staking has no unified model developed where staking exposes NFT fans to universal standards across all platforms. Although platforms incorporating NFT staking are very few, the concept of earning passive income from illiquid digital tokens has much potential for mainstream adoption. Let’s look keenly into the most renowned NFT staking platforms.


NTFX is a digital platform used to develop ERC 20 tokens backed by NFT collectibles. The platform aims at providing liquidity to illiquid NFT markets. NFTX allows NFT staking in the NFTX’s staking vaults. Once users stake their NFTs on the NFTX staking vaults, the staked digital collectibles mint fungible ERC 20 tokens in a ratio of 1:1. The cryptographic art collections earn the fungible token known as vToken that is tradable. The vToken may also be utilized to withdraw a specific NFT. In addition, vTokens can be staked to earn rewards and purchase NFTs in the vaults.

To summarize, NFT stakers can pool NFTX’s vTokens in the Automated Market Makers to enhance liquidity for other NFTX users. The tokenomics make NFTX a dominant NFT staking platform.

Brand NFT Royalty

Brand NFT is the first global music NFT company whose ecosystem is built to house musicians and fans. The platform offers NFT music exchange services. Users, through the platform, can buy music-related NFTs and stake them in royalty pools. The staked NFTs allow owners to enjoy a small share of revenue generated from NFT-backed music albums. Once the music library generates increasing sales, the income stream of the stakeholders also increases in the same proportion.

The lock-up period for this particular platform ranges between 90 days and five years. The loyalty yields generated throughout are paid at the end of the staking period.

Kira Staking Platform

KIRA is one of the most remarkable NFT staking platforms in the space. To use KIRA, NFT owners have to transfer their tokens from their DeFi wallet to Kira staking vaults. Upon the end of the transfer transaction, a request is submitted. Once the request has been accepted, KIRA Network governance processes and approves the proposal to offer derivative products on staked assets. 

However, KIRA is still under Beta testing. NFT fans can stake their Non-Fungible Tokens to earn fungible digital assets to stakeholders. The fungible tokens earned will be tradable and divisible, making it possible for fractional shares to be developed from them. The KIRA staking platform has numerous advantages. The platform offers an extra layer of security using the multi-layered security protocol. The platform also incorporates a rewards system that gives NFT holders high yields. KIRA’s governance may set a designated rate that influences its networking.

The only downside of the KIRA platform is that it faces low publicity. It is unpopular with the NFT community. The ecosystem’s governance should do more reforms and marketing strategies to ensure KIRA’s name is out there.


Splinterlands is a blockchain gaming ecosystem that allows crypto gamers to stake their in-game collectibles. The-game cards or land exist in the form of cryptographic tokens. After completing their daily quests, gamers earn after fifteen days, marking the end of each gaming season. Even though the game is built on the Hive Protocol, collectibles may be treated as ERC 721 NFTs that allow them to be traded on popular marketplaces like OpenSea

Apart from being an NFT staking platform, Splinterlands is also an enjoyable play-to-earn game. The game has a lot of active users that keep the staking network busy, compared to KIRA’s unknown staking platform. Staked NFTs earn BAT tokens that are both fungible and tradable.

Doge Capital

Doge capital is a staking platform developed on the Solana distributed ledger ecosystem. The platform has a collection of over 5,000 NFT art collections. NFT holders using this platform can stake NFTs and subsequently earn daily DAWG tokens. DAWG is the platform’s primary utility token listed on several exchanges.

Staking NFTs is an excellent way to earn passive income on illiquid digital tokens. Instead of solemnly relying on capital gains of appreciating NFTs, NFT holders may stake their NFTs to achieve yields on various staking platforms. Cryptographic art and collectibles’ staking is still unpopular among crypto fans. However, the ecosystem is growing exponentially. Soon, the projectile of the new technology ecosystem is set to increase with the massively growing NFT market.