Explained: NFT Staking and How It Works
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Non-fungible tokens (NFTs) have gained significant attention since 2021, with prominent collections such as Bored Ape Yacht Club (BAYC), Azuki and DeGods. NFTs are commonly known as digital representations of art and collectibles that could potentially appreciate in value over time. However, as the NFT landscape progresses, artists, developers and collectors have been exploring new use cases for NFTs, one of which is NFT staking — the locking of NFTs in a protocol in exchange for rewards.
In this guide, we’re going to take a look at what NFT staking is, how it works, factors to consider when staking NFT, pros and cons of staking NFTs, the type of rewards holders can receive and the best platforms for NFT staking.