Comment on page
Guin Gang Staking
As the name implies, NFT staking generally is the process of locking up NFTs on a platform or protocol in order to earn staking payments and other benefits. This enables NFT holders to obtain a passive income stream while remaining owning their NFTs. While NFT staking is still in its infancy in comparison to other DeFi yield farming concepts, it operates similarly to other DeFi yield farming concepts.
By staking NFTs on a platform, you can earn rewards based on the annual percentage yield (APY), the duration of the staking, based on the specific emission rate and the total amount of NFTs staked. Investors and collectors often like to HODL and speculate on NFTs due to their unique character. NFT staking enables them to monetise their assets in a novel way, which might potentially attract more participants and increase market demand for stake able NFTs.
Staking an NFT is identical to staking Binance Coin (BNB) or Ethereum (ETH). All that is required is a non-custody wallet such as Metamask wallet that supports NFTs. Not all NFTs, however, can be staked to earn prizes/rewards. The criteria change according to the project, so it is prudent to verify the requirements for your selected projects prior to getting the NFTs.
But on our dApp, stakers will get $SQUIDS token as a reward and they can use it to claim merchandise, lore (still in discussion), leaderboard and others.
When you stake an NFT, the staking platform determines its worth based on the rarity and arrives at an annual percentage yield (APY) or depending on their emission rate. The rarer your NFT, the higher the APY you get. The value of an NFT also depends upon its capacity to generate a stable revenue stream such as royalties or claim more rewards as return.
Follow our handy guides to get started on the basics as quickly as possible: