How do I make a profit off of the NFTs I own?
A lot of NFT projects provide different ways for their HODLers to make passive income. Below you’ll find a few of the unique ways that projects offer this added incentive.
can help increase returns on your NFT investments (NFA).
One of the most popular ways to earn passive income that many NFT projects offer is what is known as staking. Noob2NFTs Glossary of NFT Terms defines staking as “When a coin or NFT is set to earn interest, similar to a savings account.” Typically, this means that you lock your NFT outside of your wallet on an external staking website operated by the project. This is to keep you from listing the asset on a secondary market which could potentially bring the floor price down. In exchange for doing this, they often compensate you with a token that accumulates daily. These tokens are generally specific to that particular project. For example, my favorite project on Ethereum, Roaring Leaders, gives its owners their utility token called $ROAR in exchange for staking their NFTs. You can read all about the project and the many uses for $ROAR in Noob2NFTs Roaring Leaders Project Spotlight page. Solana’s Famous Fox Federation NFT collection provides its owners with $FOXY that can be swapped and traded with other tokens and crypto coins on their exchange, the Famous Token Market. FFF also has a popular “Rafffle” page where you can not only try and win NFTs with their $FOXY token, but with various other tokens like DeGod‘s $DUST, Mous In Da Hous‘ $44TH, Nōryoz‘s $NORY and many, many others. This is an incredible opportunity to use the tokens you’ve passively accumulated to (possibly) earn more NFTs, which you can then, in turn, stake for more tokens and additional chances at other NFt raffles.
opportunities to both win & gain tokens and NFTs.
Lately, in an effort to minimize gas expenses and provide additional flexibility for those looking to stake their NFTs, many projects are trying a new system called “soft staking.” When you soft stake your NFTs you leave the NFT in your wallet, but you still accumulate the project’s token. This allows the owner to sell their NFT, but also transfers the accumulated token with it. An example of this on the Ethereum blockchain would be Baby Ghosts. If you own and soft stake any of their 10,000 NFTs you earn their $BOO token daily. How much $BOO depends on the rarity of your Baby Ghost. The Baby Ghost Whitepaper say’s there will be a “myriad of perks in the Spookyverse,” such as “minting 3D versions of the BGs you own, exclusive access to the Web3 tools the Baby Ghost team is developing, and to unlock functionalities in their P2E game!”
Another great example of soft staking is a separate Ethereum project, The Blinkless. Any NFTs from their three collections, The Blinkless Official, The Blinkless: Fully Dilated, and The Blinkless: The Big Bang, can be soft staked. The biggest difference here (compared to Baby Ghost’s soft staking, and others,) is that you pay some gas to do so, yet you retain the right to list and move your NFTs as you wish. (If you’re new to Ethereum’s gas fees, one of Noob2NFTs weekly blog posts entitled, What is NFT Gas? Gwei? can help.) A cool aspect of The Blinkless soft staking is that you can earn their token OPTIX from their NFTs as well as from a handful of other NFT collections, like Dippies and Goblintown.
In addition to staking there are several other ways that NFTs can provide passive income. One of my favorites is provided by the Solana NFT project, Meerkat’s Millionaires Country Club. They offer a 100% return of royalties to their HODLers and were one of the first, if not the first, to do this. Every Monday is “Meerkat Monday” and they drop a percentage of SOL earned that week by the project to each MMCC owner. It’s nice to see my SOL automatically increase every week without lifting a finger just for owning their NFTs!
Similarly, the aforementioned Ethereum project, Roaring Leaders has what they call the “Leaders Fund.” The LF is one of the largest DAO (“decentralized autonomous organization”) assemblage of ETH and blue chip NFTs of any NFT project. Each Roaring Leader NFT and Leaders Fund Share gives the owners a stake in the massive (300+ ETH) fund!
I want to touch on one last way to earn passive income from NFTs and it’s a fun one. Designed for the Degen NFT collector: lotteries. You HODL a project’s NFT and they randomly draw a number and if that number lines up with your NFT they reward you with crypto or their token. My favorite project doing this is on Solana’s blockchain, the Lottery Otters. Not only is the NFT art slick and makes for a great PFP project it doubles as a lottery system. They plan to divvy out a small amount of SOL from draws every day that will be “determined via blockchain random number generation” and a larger draw will go to one lucky Lottery Otter once a week. The project plans to mint 10,000 “Lotters,” so with each one you own it increases your chances to win some serious SOL!
Click each of the hyperlinks above to check the project out!
So, there you have it, Noobs! This article has covered several ways that you can make passive income from the NFTs you own! Enjoy those extra earnings frens!
