What Is NFT Staking?

NFT staking is the process of locking up your NFTs on a platform to earn rewards, usually in the form of cryptocurrency or tokens — similar to DeFi staking but with NFTs instead of fungible tokens

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🕒 7:28 PM

📅 Aug 07, 2025

✍️ By CASHMONEY1

🔧 How NFT Staking Works:

1. You own an NFT (e.g., from a game, art collection, or utility project).

2. You stake it on a supported platform or dApp.

3. While staked, the NFT is locked — you can't trade or use it.

4. In return, you earn rewards over time (e.g., governance tokens, yield, in-game currency, or staking incentives).

5. After a period, you can unstake your NFT and claim your rewards.

🧠 Simple Example:

1. Suppose you own an NFT from a play-to-earn game like Axie Infinity or The Sandbox. 

2.  You stake it on the game’s platform, and for every day it’s staked, you earn $SAND or in-game benefits.


How it works:
Locking up NFTs:
NFT owners transfer their NFTs to a smart contract on a staking platform.

Earning rewards:
In return, the platform rewards the NFT owner with cryptocurrency, other NFTs, or other benefits.

Passive income:
This allows NFT holders to earn passive income without having to sell their assets.

Utility:
Staking can also add utility to NFTs, transforming them from static collectibles into income-generating assets.
Key aspects:

Platform-specific:
NFT staking is often platform-specific, with different platforms offering varying reward structures.

Rarity and value:
The rewards for staking can be influenced by the rarity and value of the staked NFT.

Smart contracts:
Staking is facilitated by smart contracts, which automatically execute the terms of the agreement.

Not all NFTs are stakable:
Some NFTs may not be compatible with staking platforms.