Staking has been associated with tokens in the crypto industry. Things have evolved, allowing users to stake their digital assets for passive income through rewards or interest. Pandora has taken a step in that direction. What makes this evident is the recent blog post published by the venture to highlight how holders can stake their NFTs for passive income to get the most out of DroidBots.
Once holders have staked their non-fungible tokens, they can claim rewards based on the level they reach.
📍 Unlock new revenue streams with #NFT Staking !
💸 Start earning passive income and join the revolution of digital art ownership.
😎 @Pandora_DEX designed NFT Staking to help users get the best out of DroidBots.#NFTs
— CryptoNewsZ (@cryptonewsz_) February 6, 2023
DroidBot is the NFT of Pandora, and it has distinctive mining power and reward rates. Based on the number of DroidBots they stake, holders are divided into two main mining camp categories. Common Mining Camp is the first, while Premium Mining Camp is the second.
Staking DroidBots from Level 1 to Level 9 classifies a holder in the Common Mining Camp. DroidBots in this category can be unstacked at any moment. Rewards are distributed from a pool that is created by the community.
Premium Mining Camp, as its name suggests, is the grand mining camp that rolls out higher rewards for the stakers. However, the eligibility requirements have been raised, making it more difficult for holders to qualify. Staking DroidBots from Level 10 and above puts users in the Premium Mining Camp.
The concept designed by Pandora takes inspiration from other platforms in the market, namely Band Royalty, NFTX, and Kira. All the platforms have launched their respective products with the objective of giving holders tradeable tokens for their digital assets. Users are often asked to opt for a fixed period while depositing the NFT. Interest is then rewarded to them accordingly.
Staking is not a novel concept in the cryptocurrency market. It mirrors the traditional banking system, in which bank account holders receive interest based on the amount of money in their savings accounts. The crypto industry allows users to stake their digital tokens in exchange for BTC, ETH, or any other cryptocurrency as rewards or interest.
Instead of staking the digital token, users have the ability to generate passive income with their NFTs. The mechanism itself is trustworthy since it is founded on DeFi principles, which are in turn founded on the functionality of mathematics and blockchain. Transactions are only executed if the specified conditions are met. For instance, if a user clicks Stake, the system can be instructed to hold an NFT.
Most of the time, users interact with the front end instead of the complicated backend system.
Getting the best out of DroidBots will now be a regular occurrence for the holders in Pandora’s ecosystem. They will be able to put their digital tokens to work while also claiming great rewards based on the mining camp and level of DroidBot they stake.
Source: https://www.cryptonewsz.com/pandora-to-allow-nft-holders-to-earn-passive-income-with-droidbots/