The Concept Of NFT Farming and How You can Earn From Farming NFTs on NFTrade.
NFT Farming
NFT farming builds off the concept of token staking and liquidity farming, with users staking native tokens to earn an additional yield through an NFT-based reward.
Unlike traditional staking, which pays out the reward in the natively staked token, through NFT farming;
Users can obtain much rarer and distinctive yield generating assets. These earnable NFTs can vary greatly depending on the token being staked, the use case behind the project, and what the native development teams deems as the proper reward to be made earnable.
With NFT farming, projects benefit by having additional tokens locked up and off the market, strengthening their ecosystem, and users benefit by earning tangible value through the availability of exclusive NFT assets.
For projects that do not offer a form of staking or yield generation, which are many, NFT farming provides an obvious value generation event that provides additional value to the end user.
The rewards for NFT farming vary, but they are mainly separated into two categories which are;
Collectible NFTs which can range from digital art, gaming items, or a rare and numbered asset, with the exclusivity of the NFT at least partially driving aspects of its appeal and value. With the NFTrade farming platform, the NFTs available on the platform will be 100% exclusive, meaning that the only way to earn them is through token staking and NFT farming within our platform. For example, if you play a blockchain-based game, a collectible NFT reward could be an exclusive in-game item, character, or usable asset, which can then be equipped, sold, or swapped to recognize its inherent value. This creates a more liquid option for NFT farmers who want to see tangible profits from their staking endeavors.
Utility-based NFT tokens, which, when held, provide exclusive benefits to the asset holder. The possibilities available within utility-based NFTs are almost endless, and will continue to expand in complexity and value as more projects begin to understand the value propositions that NFTs can present to token holders. Some basic examples of utility-focused NFTs are redeemable NFTs that allow early platform access to a new application, a discount on transaction fees for a native platform, the ability to opt-in for a higher reward tier, and many others.
In summary
Following the initial success of our NFT farming application, we have listened to project and community feedback to make the experience even better. NFT farming allows users to earn tangible rewards in the form of NFTs, such as collectibles, gaming items, art, and utility NFTs such as IDO allocation rights, access to upcoming beta features, and much more. In exchange for staking native tokens, users can earn exclusive NFTs unavailable anywhere else, providing unique benefits that can only be achieved through NFT farming.
To build on the experience and make it more worthwhile for projects and community token holders, we are implementing an optional fee feature, as well as the ability for projects to opt to lock users’ tokens. This introduces more aspects from traditional staking and opens up the opportunity for the community to benefit from more exclusive and harder to obtain NFTs.
ABOUT NFTrade
NFTrade is the first cross-chain and blockchain-agnostic NFT platform. We are an aggregator of all NFT marketplaces and host the complete NFT lifecycle, allowing anyone to seamlessly create, buy, sell, swap, farm, and leverage NFTs across different blockchains
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