In today’s lesson, I want to spice up things a little bit. There’s so much to learn about NFTs but I want to push ahead to explain how to stake NFTs. It’s like staking tokens. But it doesn’t mean you are going to be rewarded with NFTs.
Staking NFTs is like staking tokens. The only difference is in what you are staking and how differently the values are measured.
NFT Staking might be more profitable than staking tokens. That’s because NFTs may have rarity which makes one NFT more valuable than another. It’s also based on these NFT rarities that the value of your ft staking (mining) power is calculated.
This post will explain more on how to go about staking NFTs and the advantage it has over staking tokens.
✅ How to Stake NFTs
Staking NFTs would require an NFT project that allows you to stake their NFTs. You can’t just buy any NFT and stake them. It has to be an NFT created on platform for staking. That’s the reason you should know the utility of an NFT before buying it.
You can buy NFTs for staking by casting one yourself, or minting NFTs or simply buying one off the NFT marketplace where it’s offered for sale.
✅ NFT Staking Metrics
Before considering NFTs for staking, you have to understand the benefits it’s affecting. Apart from APY or APR, NFT staking offers some hidden benefits like:
✅ What’s Mining Efficiency
Different NFT cards have different mining efficiency based on the rarity of the card. Higher the level of NFT, the higher the mining efficiency. That means each NFT card will have different value based on its mining power. You can calculate the mining power of the NFT based on the mining efficiency.
✅ What’s Mining Power
Mining power means (Mining Efficiency Multiply Par Value) of the NFT. You will be receiving rewards based on the NFTs mining power, which depends upon the type of your NFT, and the token you used for casting, minting or buying it from the marketplace.
However, par value simple means the the original value of the NFT. That’s the amount or value of the token used to acquire the NFT. While the mining power is like a bonus increase to the original value of the NFT.
Let assume you bought an NFT with 100 token, and the mining efficiency of the NFT is 200% that means the mining power will be 200 tokens instead of the original 100 tokens you paid for it. Your earnings from staking the NFT will be calculated by 200 tokens and. It by the original 100 tokens.
✅ POSI NFT Pool
One of the easiest ways to start staking NFTs now is with POSI NFT Pool. You can get mining efficiency between 110 to 200 percent. The higher the efficiency of your NFT the more POSI you will earn.
However, POSI NFT Pool has low APY compared to the farms and vaults. The motivation for investors is to get higher mining power. But you may also need to invest more to get the chance of a higher mining power.
Let’s look at the chances of getting POSI NFTs with higher mining power.
?️Farmer NFT (110-120% efficiency) – You have 50% chance of casting a POSI farmer. That’s because 50% of POSI NFTs are farmer NFT.
?️Janitor NFT (120-130% efficiency) – You have just 30% chance of casting a POSI Janitor. Only 30% of POSI NFTs are Janitors.
?️Accountant NFT (130-140% efficiency) – 10% of POSI NFTs are accountants.
If you cast a POSI NFT, you chances of getting accountant NFT is just 10%.
?️Engineer NFT (140-160% efficiency) – just 8% of POSI NFTs are engineer. You only have 8% chances of getting and engineer NFT.
?️Pilot NFT (160-180% efficiency) – only 1.8% of POSI NFTs are pilot. To cast and get a chance of POSI pilot NFT is just 1.8% luck.
?️Boss NFT (180-200% efficiency) – You can rarely get a boss. The chances are just 0.2%. It’s the hardest POSI NFT to cast. Yet, it’s the NFT with the highest mining power.
NFT Staking is one of the best ways to get into NFTs now with some guaranteed return on your investment. POSI is not the only NFT Staking project. There are so many other projects and more coming out with staking.
NFT Staking earnings are huge compared to normal token Staking. Because NFTs has mining power, which increase the value of your NFT in the Staking pool, and gives you more returns as well.
I would chose NFT Staking anytime over normal token Staking. The advantages are huge. And if it’s NFTs you bought, Staking it increases the value as well, and earns you passive income while you hold to sell at a much higher price.