Staking NFTs to Earn And Invest in DAOs

November 28, 2021

Ever since I returned from playing the WSOP in Vegas, I dived straight back into crypto and NFTs. During my absence, a new trend was born while I was focused on winning the Main Event. DOA’s and staking NFTs with your PFP NFT.

Basically, it means you’re able to earn passive income with your NFTs. While this trend is growing, so are the questions from my friends. So let’s break it down a bit.

What is Staking?

NFTs are essentially tokenized assets. Like any tokenized asset, NFTs can be locked on a platform that takes care of their safekeeping and governance.

You’re reading that correctly, you can actually stake your non-fungible tokens to earn income from it.

Once the NFT is staked, then governance could be assigned to that asset to determine the tokenomics. Once an annualized yield (APR) is established, the tokens could be staked and the delegators would be able to claim block and fee rewards.

How much you earn, depends on the platform and asset. I’ll get to a few examples in a bit.

What is a DAO?

The term DAO is short for “decentralized autonomous organization” and can be described as an open-source blockchain protocol governed by a set of rules, that automatically execute certain actions without the need for intermediaries. In simple terms, every share (token) holder of a DAO has (voting) rights, there is nobody in control and the majority can push decisions through.

3 Examples of DAO’s & Staking NFTs to Earn

Right now, I’m staking two NFTs, which earn me tokens and I’m part of their DAO. I’ll walk you through 3 examples right now which hopefully helps you get started.

1] HeadDao NFT

Founded by wiz-kid Shamdoo, the Head DAO NFT collection quickly sold out at mint for 0.055 ETH per Head DAO NFT. Each Head NFT grants access to the exclusive DAO community and voting rights over the DAO’s assets which are displayed below. About 80% of the ETH collected at minting went straight into their NFT vault.

I fomo’d in a few days late, and paid 0.8 ETH for my share of the DAO, with a current floor of 0.22 ETH it would have been better to wait. However, I’m glad I got in. With around 77% of the collection locked in staking, I might buy a few more to average my purchase cost down and to get a bigger share in the DAO.

In addition to owning the NFT, you can stake your Head DAO NFT to earn $HEAD token. Thus, holding this NFT provides the opportunity of earning crypto and owning a part of an expensive NFT collection. Find out more information on their website. I’m staking my NFT and enjoy getting $HEAD every day. Pun intended.

This is decentralized authority at its best, with its current assets valued at ~714 ETH, which includes Crypto Punks, Bored Apes, and a Beeple.

2] Mutant Cats

Now that Mutant PFPs are hyped, they have my attention.

Mutant Cats is the first DAO that buys and fractionalizes Cool Cats NFT, CryptoPunks, Bored & Mutant Apes, Sandbox land, and more top-notch blue-chip NFTs. If you own this NFT, you share a part of the DOA, which you can find here.

Their staking mechanism is more complicated, but also more fun. Try to explain this at a Thanksgiving dinner party:

Staking your Mutant Cat PFP, rewards you with 10 $FISH per day, which represents your share of the NFT vault. Nearly 90% of all Mutant Cats are currently staked.

Subsequently, the team also dropped a companion series called Mutant Gorillaz. Now here’s where it gets interesting. You can stake your Mutant Gorillaz to earn $Serum token. After about 60 days you have enough $Serum to transform your Mutant Cat into a Cured Cat.

You can speed up the $Serum staking process, by feeding your staked Mutant Gorillaz $FISH token. If you give him $10 FISH per day, it cuts the time in half to collect enough $Serum to get a Cured Cat.

This will be an entire new NFT, which can later be used for breeding. Do you still follow?

Hopefully, the infographic above clears it up a bit. In short, if you stake both NFTs, you earn 2 different tokens and you’re part-owner of the DAO. Not bad right?

3] CyberKongz

Launched about six months ago at 0.01 ETH, the collection of 1,000 genesis Kongz now sits on a floor price of 155 ETH.

Prices of Genesis CyberKongz surged after the team released their $Banana token, as each NFT earns 10 $Bananas per day. At current prices (~$50), that’s a daily yield of $500, or $182K per year. 

You can use these tokens for breeding. By saving up 600 BANANA tokens, two Genesis Kongz can be bred to yield a BabyKong and a VX Kong. These are larger NFT collections with current floor prices of 11 ETH and 1.6 ETH respectively. Kinda weird right?

Currently, there is no DAO yet. On the other hand, by looking at the current trends of DAO’s and staking NFTs, we might see it on their roadmap sooner or later.

Win a Bored Ape on ByBit

Today I joined a trading competition on Bybit, with a prize pool of $1,000,000 and a bored ape and some mutants. This particular exchange is known for being a platform for margin trading, but for this promo, at least 1 spot trade is needed. To enter, just 1 spot trade of $10 is needed. So just buy $10 of $BTC and you have a chance to win. Not bad right?

Before I forget, KYC isn’t needed to enter. Maybe if you win a big prize you will need to. But for now, you’re all good without.

Final Thoughts

This industry is getting more crazy. There’s a surge in projects, and the teams are using their creativity to add value and utility to their communities. Obviously, earning with NFTs becomes a big part of that. With these 3 projects, you can earn $Head, $Fish, $Serum, and $Banana. On top of that, you can transform or breed new NFTs. That shit is pretty cray cray if you ask me.

I hope this helped you understand these concepts a bit better. And if you end up buying and staking an NFT with my help, I’d appreciate it if you share my blog on social media. More people could use help in this world, and you never know which of your followers is on the verge of diving into OpenSea to purchase his first NFT.

Sharing is caring. Till next time.

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