The act of “staking is extremely important when it comes to maintaining the economy of a crypto or NFT game. Staking is used to simulate the monetary systems of GameFi projects since it enables various transactional possibilities. This article will tackle everything you need to know about staking in the GameFi economy.
What is GameFi?
GameFi came from the combination of the words “game” and “finance”, which explains how financial systems can be gamified by letting users earn money from playing crypto games. If you are a beginner in GameFi, check out this article that talks about how GameFi works and what are its features so you have a better understanding of them first.
GameFi projects that are powered by blockchain technology can give users the ability to own in-game assets and monetize their activities, such as in the case of Axie Infinity’s P2E ecosystem. Read more about how GameFi projects ensure fair tokenomics here.
At the World Blockchain Conference held in Wuzhen China, last November 2019, the blockchain studio MixMarvel gave a presentation on how blockchain technology can revolutionize the gaming industry. Andre Cronje, the creator of Yearn.finance, later then, introduced “GameFi” in a tweet in September 2020.
Since then, the term GameFi has been used universally when talking about video games with decentralized financial components made possible by blockchain technology.
Staking in GameFi: How does it work?
Staking in GameFi and yield farming in decentralized finance (DeFO) have many similarities. In DeFi yield farming, crypto assets are deployed or lent to liquidity providers to earn rewards in the form of transaction costs incurred by others or interest.
The method of earning interest in GameFi can also be compared to earning interest through your bank savings account. The more you put money into your savings account, the higher the returns and interest will be. But the key difference between savings accounts and GameFi staking is that there is no intermediary such as banks, involved when staking digital assets.
When you stake digital assets, you are delaying the incentives in exchange for a higher payout. Thus, the key thing you have to do is wait, and the reward for doing that is more tokens or digital assets. Staking can improve your gaming experience and the likelihood of earning more rewards.
How to stake in GameFi projects
Staking means putting your assets up as collateral on the blockchain to put your assets to work. You will need a crypto wallet to do this, which must be compatible with the NFTs or digital assets that you will stake. Then, you will link the crypto wallet to the staking platform where you will deposit your assets.
You will receive rewards in exchange for staking your NFTs or digital assets. The rewards will take a variety of forms, whether it be a boost in your NFTs, additional NFTs, or obtaining other game currencies. Take note that you will still retain ownership of the digital assets even if you have staked it on your platform of choice.
GameFi staking rewards
The rewards you will get for staking NFTs depend on the type of NFT you have. Most sites will allow you to stake NFTs in exchange for periodic incentives, typically on a daily or weekly basis. The staking rewards can also be converted into other cryptocurrencies, tokens, or fiat currencies.
There are also staking platforms run by Decentralized Autonomous Organizations (DAOs). Here, you can stake your digital assets and lock them into the staking pool. This will give you a chance to engage in governance duties, such as voting on the project’s future developments.
Staking alone will not guarantee huge returns. Always keep in mind that the sustainability and popularity of the GameFi project also play an important role in the profitability of your staked assets. Thus, ensure to do extensive research on the current market and the project you are planning to invest in.
What will happen when you stake digital assets?
When you stake tokens or NFTs, you will retain the ownership of the digital assets. The staked assets will be stored securely within your wallet during the lock-up period to maximize your profit potential. Once the staking period is over, the assets will be returned to you.
You can still retrieve your staked assets before the staking period is over, but you will have to pay a specific price and give up the potential gains.
Ideal GameFi projects for staking
When you want to stake digital assets, you need to do thorough research. Always keep in mind that the value of NFTs can also go down. So, staking will have risks as well as possible rewards. Here is a list of the Top 6 GameFi Crypto Tokens for 2022 to help you decide which token to invest in.
Check out these popular GameFi projects where you can stake your digital assets on:
Splinterlands
Splinterlands is a game built on a blockchain in which you collect cards. It is a lot like Hearthstone, where you build up a deck of cards with different abilities and traits and then use them in competitions.
The game’s native coin, SPS, which stands for “Splintershards,” is set up as a DAO on the Binance Smart Chain (BSC). You can bet your SPS tokens on other players in ranked battles, liquidity pools, and the voting pool for governance.
Play It Forward
Play It Forward is dedicated to a simple goal: to help the metaverse reach its full potential. It is a place where people can meet and join guilds to make money from P2E games.
Once you decide to stake, you can own Play It Forward’s native token, $PIF, to have access to the full value of its ecosystem. As an investor, you will be able to bet $PIF to get a share of the money made by both the guild (Railings University) and the platform.
You can keep your PIF tokens locked up for anywhere from 0 months to 24 months. If you lock up your tokens for longer, you will be able to win bigger prizes because the number of rewards you get will depend on how long your tokens are locked up.
The goal of PIF in the first year after the token generation event (TGE) is to set aside a large number of tokens so that stakers can be rewarded for continuing to support the project.
As the ecosystem grows, the PIF DAO will give its community more options and a wider range of choices by giving holders more benefits. We wrote an article about Everything You Need to Know to Stake Play It Forward’s Utility Token so you can learn more about it and the steps to stake it.
BAND NFTs
New music technologies mark the start of a new era in the music business, in which creators will have full control over how their works are shared.
BAND is an NFT exchange where you can buy music NFTs and put them in royalty pools to get a cut of the money made from the songs or albums. The size of the platform’s music library will affect how much royalty income you can expect.
Polychain Monsters
Polymon, which are animated collectible NFTs, are used in Polychain Monsters. Polymons all have their own unique traits, and they can be very common or very rare. Players can trade them and fight with them. Polymon holders can put their Polymon NFTs on the line and get weekly payouts in PMON, the game’s native cryptocurrency.
Doge Capital
The Doge Capital collection is made up of 5,000 non-fungible tokens with pixel art designs. These tokens were made on the Solana blockchain. You can buy them at any of the marketplaces in Solana.
Doge Capital runs a staking system, which gives you DAWG tokens every day in exchange for keeping your tokens “staked.” The DAWG token, which is Doge Capital’s native utility token, can be bought on a number of exchanges.
Is staking a good idea?
The act of staking is still in its early stages. Since most people buy digital assets to keep them forever, there is a big problem with liquidity. This is partly because the ecosystem that supports NFTs isn’t fully formed yet.
Still, the recent buzz about NFTs has gotten investors who are just getting started in the cryptocurrency market interested. NFT staking may not be as popular as cryptocurrency staking right now, but it has a lot of room to grow in the near future.
The benefit of NFT staking that stands out the most is probably that you don’t have to sell or give away your NFT collection. Basically, all you have to do is put your money into a pool and get rewards for doing so.
What is the point of staking in GameFi?
People are getting more and more interested in finding new ways to make money without having to work for it. Even though staking is a new idea, many NFT and token holders in GameFi are very excited about it.
Digital assets and staking go hand in hand because you can invest in NFTs or stake to take tokens out of circulation and make money.
A dynamic gaming economy can grow with the help of staking. It gives players options for how they can make the most money and win the most games. So, as they improve and develop their NFTs, they have a better chance of making more money.
Find out what the latest GameFi trends are that you should know about in 2022.
Conclusion
GameFi projects can create a thriving economy that gives the most dedicated or active players extra benefits by giving them reasons to stake more tokens for longer periods of time. Is staking in GameFi really that important? Yes. For digital assets to have any use, they need to be able to move around and keep their liquidity. Staking rewards people who do these things with more tokens.
Do you want to become a GameFi gamer or investor?
GameFi is a vast industry where investors and players can work together. Join millions of crypto enthusiasts and help build GameFi and the metaverse by becoming a P2E gamer or a GameFi crypto token investor!
Enter as a gamer
Be one of Railings University’s gaming scholars, the huge guild being managed by Play It Forward DAO! Railings University gives you open doors to multiple play to earn and move to earn GameFi projects across the metaverse.
Watch some tutorials about P2E and Ask Me Anything sessions with our partners in the gaming industry on YouTube and visit RU’s Facebook page to learn more.
Enter as a token investor
If GameFi investment interests you, you should become a PIF token holder. Start your journey as a token investor! Join Play It Forward DAO’s Telegram and Discord channels today to find out more about it.
Check out PIF DAO’s social media accounts on Facebook, Twitter, and LinkedIn for PIF token updates.