NFT Staking: How it Works, Rewards, and Best Platforms
NFT staking can turn your NFTs into more than just collectibles. By staking your NFTs, you can earn rewards and unlock additional utility without selling or trading.
In this guide, we’ll explore how NFT staking works, the rewards, benefits, and some of the best platforms to stake your NFTs on.
What is NFT staking?
NFT staking locks your NFT in smart contracts, whilst maintaining ownership, to earn rewards and utility that can be used on the protocol. Unlike staking for Proof-of-Stake (PoS) networks, projects use NFT staking to encourage more participation and loyalty in the ecosystem.
How does NFT staking work?
Staking NFTs involves locking or depositing NFTs up in smart contracts to earn rewards. Rewards can vary between different staking pools and the number of NFTs you stake. During the lock-up period, you maintain ownership of the NFT, but it cannot be sold or traded.
Rewards are often given in the project’s native or governance token, or some equivalent. Most platforms will outline what you can expect with their reward process.
To stake an NFT, you will need a compatible digital wallet and an approved NFT. Not all NFTs can be staked, so it’s important to check the platform's requirements.
How are NFT staking rewards calculated?
Staking rewards vary based on the platform you choose and the type of NFT that you stake. Several factors influence rewards, including:
Duration: Platforms often offer larger rewards to those who lock up their NFT for longer periods. Some platforms even introduce tiered rewards to incentivize users to keep their NFTs staked.
Rarity of the NFT: If you’re staking a rarer NFT, or one with a specific trait, you’ll likely earn a higher reward.
Total value of the stake: The total value and number of NFT stakes could affect your reward size.
Network fees: When you stake, unstake, and claim rewards, you will pay gas fees, which can reduce your overall return.
Total pool size: Pools with more stakes will often offer more frequent rewards, but they will be smaller. Pools with less stakes often have larger but more infrequent rewards.
Reward model: Each platform has its own reward system; this could include Annual Percentage Rates (APR), or dynamic reward structures that fluctuate with ecosystem engagement and market activity.
What kind of rewards can you earn?
There are several different rewards you can earn from NFT staking:
Crypto: The project's native token, which you can use to trade or restake.
Governance tokens: Used to vote on the project's future, including changes and updates.
In-game items: In play-to-earn games, you can earn weapons, skins, or in-game currency.
Early access: Some projects will give users early access to new drops.
What are the benefits of NFT staking?
NFT staking gives you the ability to earn while keeping ownership of your asset, and there are several benefits as a result of this:
Earn passive income: To earn rewards and passive income, you lock up your NFT.
Participate in governance: In some cases, you may be rewarded with governance tokens for staking. You can use these tokens to participate in the ecosystem by voting on changes and updates.
Help the NFT ecosystem: Staking encourages long-term participation within the project’s ecosystem.
Additional liquidity: One of the biggest issues with NFTs is that they are illiquid assets. By staking an NFT, you can extract value from it without selling it.
Access new NFTs: Some platforms offer their users early investment opportunities in new and upcoming NFT projects.
What are the risks of NFT staking?
Despite the benefits, the NFT market remains volatile, and several other risks can impact NFT staking. These include:
Market volatility: NFT value can rise and fall significantly in a short period. Your NFT’s value could fall while locked up.
Smart contract vulnerabilities: NFT staking relies on smart contracts to lock the NFT and issue rewards. Smart contracts are vulnerable to bugs and exploitations that could result in the loss of your rewards or NFT.
Lock-in period: When your NFT is locked, you cannot sell or trade your NFT. Lock up periods will vary based on project.
Reliance on the platform: While your NFT is staked, you are reliant on the platform to remain popular and active, otherwise your rewards lose value.
Regulatory changes: We continue to see regulatory changes and restrictions across all of crypto, including NFTs.
Best NFT staking platforms
| Platform | Blockchain | Reward type | Lock-up period | Best for |
|---|---|---|---|---|
| Axie Infinity | Ronin (Ethereum-linked) | bAXS | 2 days for liquidity staking, 3-7 days for inventory staking | Active Axie players |
| Splinterlands | Hive (supports bridges to Ethereum, BSC, and Base) | In-game resources (grain, SPS, research) | 3 days | Active Splinterlands players |
| NFTX | Ethereum | vTokens (vault tokens) | 3-7 days (May not receive the same NFT you staked, but it will be an NFT from the same collection that is in the vault inventory) | Blue-chip collectors |
| BAND NFTs | Ethereum | Music royalty income | 90 days-5 years | Music catalog investors |
| DOGE Capital | Solana | $DAWG tokens | No minimum or maximum. However, to earn and claim rewards you need to accrue enough farmed balance | Meme coin community stakers |
It’s important to find an NFT staking platform that works for you and is compatible with your NFTs. Let’s compare a few of the most well-known:
Axie Infinity
Axie Infinity is one of the most popular play-to-earn games. It released Terrariums in 2026, which they describe as ‘gamified staking’. Essentially, you activate your land, assign your Axies to it, and it will consume Lunium (an off-chain resource used in-game) every hour (Tick) so you can earn bAXS. bAXS, or Bonded AXS, is an ERC-20 token with the same utility as AXS within the Axie ecosystem.
Splinterlands
Splinterlands is a blockchain gaming platform that uses cards with varied abilities. It lets users stake their cards on land plots, locking their cards into a ‘working’ role to help construct buildings and generate in-game resources like grain. While cards are locked, they cannot be used in battle or transferred, and unstaked cards are subject to a 72-hour cooldown.
NFTX
On NFTX, users can deposit eligible NFTs into vaults to receive vTokens and earn a share of the fees the vault generates. When you cash in your vToken to claim an NFT back from the vault’s inventory, you may receive a different NFT than the one you originally staked at floor price. For example, if you stake Cool Cat 1429, you may end up with Cool Cat 1523.
Band NFTs
BAND NFTs is a music NFT platform, where users can stake in one of three royalty pools to be eligible for a share of the royalty income distributed to stakers. It states 50% of royalty payments received from industry royalty collection firms is paid to BAND NFT stakers. It has a minimum lock-up requirement of 90 days.
DOGE Capital
DOGE Capital lets users stake their pixel-art NFTs on the Solana blockchain, with daily rewards. For your first staked Doge NFT, you will receive 5 $DAWG daily, and each additional staked NFT receives 1 $DAWG per day. $DAWG tokens can be used to participate in governance, customize NFTs, gain access to member-only events, and buy exclusive DOGE Capital merchandise.
Is NFT staking taxed?
When staking NFTs, you earn income. This income is taxed as ordinary income at the fair market value of the crypto when you received it.
If you’re earning income daily from platforms like DOGE Capital, it can be time-consuming to track it all and calculate how much tax you owe. By uploading your transaction history to Koinly, you can manage your NFTs through the built-in NFT dashboard, calculate your crypto taxes, and generate tax forms.
FAQs
Is NFT staking profitable?
NFT staking can be profitable, but it’s not a get-rich-quick scheme. The reward you earn and the amount depend on the platform you use, how many NFTs you stake, and the NFTs' value. Investors often view staking as a means of passive income.
Can you stake any NFT?
No, not all NFTs can be staked, and not all platforms support NFT staking. Platforms that do support it will have specific requirements, such as NFTX, which only lets users stake NFTs that already belong to an existing collection or vault on the platform. Check a platform’s NFT staking requirements before attempting to stake.
Do you still own an NFT while staking it?
You can, but it depends on the platform that you use. On some platforms, like NFTX, once you stake the NFT, you no longer own it. It goes into a vault, and when you wish to redeem it, you receive a randomly selected NFT from that collection at the floor price. Others lock your NFT in a smart contract; you still own the NFT and can claim it back.
Do you pay gas fees when staking an NFT?
Yes, it’s likely that you’ll pay gas fees when you stake NFTs. The amount depends on the platform and blockchain, so always check the platform’s fee structure before you stake.
