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Staking & Leveling up your NFT!
Got any NFT just rolling around in your Wallet? Generate rewards and profit by staking NFT or level them up to upgrade your NFT collection.
An NFT Staking platform seeks to extend the longevity of the asset value of the NFT and allows it to expand into external environments.
NFT Staking platform allows users to stake NFT, and in return, obtain Staking Reward Tokens assigned to the corresponding NFT.
Staking involves the act of depositing Tokens into a smart contract for a certain period of time and, in return, receiving rewards. The basic concept of NFT Staking is similar to that of Token Staking in the sense that "when Tokens are staked, users receive Token rewards relative to the interest rate" However, as implied by its name, NFT is non-fungible, therefore its uniqueness is derived from the fact that it does not have an innate value to produce Token rewards. That is why NFT Staking uses smart contracts, where each NFT has a Token ID which "intrinsically" contains the value necessary for the staking formula.
Both pre-minted or previously issued NFT can be registered as a new staking collection. For businesses, an NFT Staking platform can help create long-running NFT projects by improving service values, while its users can utliize it to obtain additional rewards using NFT.
An NFT Staking platform supports 2 staking models.
- Mining : Reward period is determined by the selected reward and APR(%) for each Token ID. Reward delivery is based on the staked reward formula. For each Token ID, there exists levels, and for each level there is a total amount of reward available. It is not possible to receive rewards that exceed the preset amount. By staking NFT, not only do users receive rewards, but also "experience" based on the staking period. Once an NFT's experience reaches 100%, it becomes possible to "level-up" the NFT.
- Seasonal : Similar to Snapshot and Airdrops, at the start of a season (Snapshot), a reward is distributed (Airdrop) for each Token ID using smart contracts. By staking NFT, users can claim the distributed rewards. Cumulative seasonal rewards can be claimed all at once based on importance throughout each season, but only during the reward delivery period. The management of seasons may be irregular for each collection and may vary depending on the issuing team's policies. Unlike mining, once a season starts, the importance (%) for each Token ID will determine the distribution of rewards and NFT holders may claim the rewards all at once after staking is over.