4 lesser known ways to monetize NFTs

Most people are not aware that NFTs can generate passive income (without the need for activity). Just as the Decentralized Finance Division (DeFi) provides a platform for mining revenue from digital currencies such as Atrium, there are also platforms through which holders of various NFTs can earn, regardless of their asset price growth.

In this article with the help an article According to the Crypto News website, we will introduce 4 lesser-known ways to monetize counterfeit tokens that do not require any special activity other than having an NFT, such as trading.

Note: This is not a recommendation for investing in any of the following platforms and is for educational purposes only.

Sharing NFTs

The close connection between the technology related to NFTs and the defense sector has created good conditions for the staking of unique tokens.

Shares are commonly used in protocols based on the stock-proof consensus model, in which users allocate their tokens to secure the network and validate transactions; However, there are other drawbacks to equity. For example, NFTs can be locked into a Smart Contract for a pay-per-view protocol.

Like digital asset sharing, NFT shares allow you to earn a share of the rewards while earning your own unique tokens.

If you want to keep your NFTs for a long time and do not plan to sell them in the near future, equity can be a good strategy for you. NFT Sharing Platforms often calculate annual returns (APY – the profit you receive annually) based on the scarcity of a non-unique token. The rarer (more valuable) an NFT is, the higher its annual interest rate and shareholding bonuses.

Currently, there are several platforms that support NFT sharing. Examples include Kira Network, NFTX, and Axie Infinity.

Also read: sticking or stocking; Complete training + introduction of digital currency

Leasing NFTs

Currently, several gaming platforms (GameFi) allow you to rent or lease your digital suites to NFT Chinese blockbuster gamers. This is a new approach in the Chinese blockchain-based gaming space, and the benefits of renting game-based NFTs can be attractive to holders of these unique tokens. As a player, you can rent out your NFTs to make the most of your overall gaming experience.

In addition, you can rent items such as characters, weapons and special tools related to different games and use them to access new sections within a game. For example, some virtual card games allow you to rent your NFT cards to increase your chances of winning.

Platforms that support this feature use smart contracts to control the terms of such transactions, such as contract terms or rental rates.

Among the platforms available to do this is the reNFT protocol, which allows users to rent and lend NFTs. In this platform, users first determine the rental period, pay the specified collateral and then receive the NFTs they want.

Use NFT franchises

Existing estimates show that the revenue from the NFT market in 2021 was billions of dollars. The makers of NFTs are looking to bring their multi-billion dollar industry to market by launching their digital artwork. One way to share NFT sales revenue is to get their royalties.

The creator of a work of art marketed as NFT can determine that each time NFT is traded on a platform such as OpenSea, a portion of the NFT franchise sales will be credited to the account. In other words, a percentage of the NFT sales figure in each transaction will belong to the manufacturer or its franchisee.

For example, NFT developers can set a royalty of 5%. As a result, each time their digital artwork is sold to a new buyer, they will be given 5% of the bargain price.

The interesting thing about NFT franchises is that the whole process of enforcing royalty terms, tracking payments and expenses is done through smart contracts and automatically. Markets like Rarible also allow NFT makers to set and receive royalties on their artwork up to 50%.

Also Read: Introducing the Largest NFT Markets Markets

Provide liquidity with NFTs

The closer the connection between the NFTs and the Difai ecosystem, the more likely it is for users in the field to receive NFTs in exchange for providing Difai pool liquidity.

For example, when you participate in securing the third edition of Uniswap V3 Decentralized Exchange, you will be issued a series of non-specific liquidity securing tokens (LP-NFT). These tokens are based on the “ERC-721” standard and include your locked cash in the pool. You can buy and sell these NFTs in different markets, and if you do, you will somehow re-cash your locked-in capital.

Note, apart from the royalty method, other strategies that can be used to earn passive revenue from NFTs. Relatively high risk have. This is because investors usually need to deposit their NFTs in smart contracts related to defa protocols to use these strategies. As with all defae-related activities and any other type of investment, there are risks that investors must consider before using their assets or NFTs.