Note: This article is not financial advice. Hubble Protocol does not endorse any tokens or platforms mentioned in this article.
Key Takeaways
- NFT staking is one of the latest utilities from NFT communities.
- Users can stake their NFTs to earn fungible tokens.
- NFT staking tokens have different utilities for each community.
Non-fungible token (NFT) staking has become a major feature of several NFT collections over the last year. It's a trend that has created a new way for NFT communities to create a utility with fungible tokens that can be used in many ways, unlike their non-fungible counterparts, with which many users would never dream of parting ways.
This article will explore the concept of NFT staking and how Solana NFT staking has become an important part of several NFT communities on the network. Projects will be listed according to their current floor price from highest to lowest. Also, this article is not financial advice, and it's also not an endorsement of the projects mentioned.
How Does NFT Staking Work?
NFT staking is similar to other forms of crypto staking, but there are some major differences. First, an NFT is a unique token that usually shares traits and features with other NFTs from its collection, but the code behind the token is entirely one-of-a-kind.
When NFTs are staked, then a project distributes fungible tokens, tokens that share the same code and are interchangeable, to the holder of the staked NFT.
This is entirely different from staking Layer 1 blockchain tokens to help secure a network, and it's closer to staking yield farm tokens in Pool 2. Users who hold the NFT are exposed to variations in its floor price, much like a yield farming token, and they earn more tokens for their show of support (can't list on the market if the NFT is staked) through staking.
Users generally earn a set amount of NFT staking tokens per day for staking their NFTs, and these tokens can be used within the community to make purchases or vote on governance issues. NFT staking tokens also hold value on the greater crypto market, and while your landlord might not accept tokens you received from holding a picture of an ape, Gucci does.
Which NFT Projects on Solana Distribute Staking Rewards?
NFT staking began in GameFi, or play-to-earn (P2E), blockchain games. Several NFT projects on Solana saw the value in rewarding holders with fungible tokens, and these NFT communities became some of the first to set the trend.
Here is a short list of projects on Solana that reward users for staking their NFTs. Reader beware, this list is by no means an exhaustive survey of the network, and much of the data will change after the time of writing, so please check the date of this post before joining the Hubble Discord to point out inaccuracies or someone will point it out for you.
DeGods (282 SOL)
DeGods currently holds the highest floor price for staking NFTs on this list. The project is famous for charging a "Paper Hands Bitch Tax" of 33.3% on users who sold their NFTs under the floor price in its early days, and the DeGods community now rewards users for staking DeGods in the form of Degods DUST.
Users who stake their DeGods NFT earn $DUST every day. The DeGods treasury is used to buy NFTs and then resell them for $DUST, and the most recent NFT mint from Frank, the mind behind DeGods, priced y00ts t00bs in $DUST.
The DeGods collection totaled 10,000 NFTs at its mint date, but only 230 (2.3%) of DeGods are currently being staked to earn $DUST. The charts for $DUST reached an all-time high of around $6 in the spring of 2022, and it is currently valued at over $1.00.
Taiyo Robotics (131 SOL)
At a current floor price of 131 SOL, Taiyo Robotics is the next NFT staking community on this list. A phoenix from the ashes, Taiyo Robotics was an abandoned project that ended up in deft hands when one Taiyo Robotics NFT was worth just 2 SOL.
Notably, over 90% of all Taiyo Robotics NFTs are currently staked to earn the SCRAP token. Taiyo's $SCRAP also reached an ATH of $6.00 in the spring of this year, but it is presently valued at $0.49.
Blocksmith Labs (83 SOL)
The Blocksmith Labs NFT, otherwise known as a Smyth, represent a "team of experienced engineers aiming to solve real problems on Solana." By staking a Smyth, users can earn $FORGE, a utility token for entering whitelists and raffles, and acquiring 1:1 NFTs.
There are 4,400 Smyths minted in the collection, and a whopping 93.8% are staked. The $FORGE token hit an ATH of nearly $2.00 in the spring and is currently valued at around $0.50.
Famous Fox Federation (26 SOL)
The Famous Fox Federation (FFF) is an NFT project offering utility galore. There are over a dozen utilities provided on the community's homepage, including Foxy Swap, an innovative way to trade NFTs up to six at a time peer-to-peer.
The Famous Fox NFT collection includes 7,800 FFFs, and Famous Fox staking has attracted 78% of the total supply to earn $FOXY, which can be used for upgrades, auctions, and raffles. One staked FFF earns 100 $FOXY a day. The ATH for $FOXY hit $0.00615, and the current value of the token is $0.00373
Cets on Creck (23 SOL)
Rounding out the list with a spell checker's nightmare is Cets on Creck. The Cets NFT minted 6,969 cracked-out-looking cats that have attracted 73% of the total collection to steking for—you guessed it—$CRECK.
One $CRECK is currently worth $0.04, but the ATH is a mystery as this project has foregone the road of listing on CoinMarketCap or CoinGecko. This community is truly chilling in their creck house with an 18+ only raffle and auction house where $CREK can be used to purchase NFTs or spots on whitelists.
NFT Staking and the Future of DeFi
The NFT community is a huge part of the Solana community, and so is decentralized finance (DeFi). Staking, which was once the wheelhouse of DeFi, has become a part of the NFT community as well, through a clever means of increasing community participation in the project.
Where will NFT staking go next? It will be interesting to see how these communities find potential utilities for their projects with both non-fungible and fungible tokens in the mix.
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