There’s a popular saying that goes as follows: “there’s no such thing as a free lunch”. However, sometimes when you buy lunch, you get a free dessert for no additional charge as an added bonus. This is where earnable NFTs come in, allowing token holders to utilize already purchased cryptocurrencies to generate additional value without incurring additional costs.
NFTs were some of the hottest new assets in the cryptosphere when they exploded into the mainstream over the last year, but the initial excitement has cooled off considerably as the established cryptocurrency markets floundered and lost a substantial amount of value. Many are still spending six, seven, and eight-figure sums on rare NFTs, but the primary and secondary NFT sales markets have declined.
Although many users are more reluctant to have their value tied up in speculative cryptographic assets like NFTs, when it comes to earning NFTs instead of buying them, this problem is almost entirely mitigated. Users do not have to tie up additional value to get exposure to the NFT, which can be highly risky, but they can still earn and own the NFT, therefore gaining access to the value it represents, without having to give up any monetary value on their end. This new model of earnable NFTs is proving to be robust, even amongst a slumping NFT sales market.
A New Acquisition Method
Earning NFTs isn’t completely free, as it requires a user to purchase and hold tokens that they can stake in return for the future NFT reward, but it doesn’t require the deployment of additional capital. If you own a token and it is idly sitting in your wallet, instead of doing nothing, you can have the token work for you to earn additional value in the form of an NFT. This is an application we refer to as ‘NFT Farming’, or one-sided staking that results in earning tangible rewards in the form of NFTs.
At NFTrade, we launched our live NFT farming application about two weeks ago, and we have already seen major interest from projects and community token holders alike. Our first NFT farm is in collaboration with Xcademy, a Youtube and content creator platform. In this farm, users stake $XCAD, Xcademy’s native utility token, in order to earn NFTs. Besides extremely cool and limited edition collectible NFTs that Xcademy created in collaboration with three famous Youtubers, $XCAD holders can also earn NFTs that grants them future allocation in the upcoming $OPUL IDO, as well as a variety of gaming NFTs for Xcademy’s upcoming game, which is planned to launch later this year.
Not only do token holders have access to a variety of different reward types, but users of all levels can get involved. Even if you are not a top token holder, with so many different NFT reward options available, many users have the chance to earn all different types of NFTs.
Within the first week of the XCAD NFT farm launch, Xcademy supports already staked over $2.5 million worth of $XCAD tokens, representing about 20% of the total circulating supply. The excitement to be able to earn NFTs instead of having to purchase them was palpable, and $XCAD holders couldn’t get enough. At the same time, the traditional LP staking farm set up by Xcademy contained about ⅓ of the amount of tokens, even though it was opened weeks before the NFT farm. This proved our thesis right; giving users the opportunity to earn NFTs is a game-changer that allows everyone to rethink how they can maximize their token yield.
Users may have to pay upfront to purchase the token they want to stake, but if they are a genuine supporter of the project, which many are if they decide to buy the project’s utility token, then NFT farming is essentially a free way for users to maximize their value generation. In a new era of earnable NFTs, regular token holders gain additional access and power that was previously unattainable.