NFTs as passive income streams
As mentioned in last week’s newsletter, there are many different ways how NFTs can have value.
Today, I’d like to share a bit more about how NFTs could make you passive income.
The most common use case is currently within games.
Some NFTs that are simply characters in a game and their sole utility is that they allow you to take part in the game where there might be prizes to be won.
There are other NFTs that are characters in a game, but they also earn you a specific in-game token as long as you are holding it.
Oftentimes you have to lock your NFTs away to be able to earn those tokens. This is called ‘staking’ and as long as you have your NFTs staked, you cannot sell them.
So how do in-game tokens equal passive income?
Here is an example of a game that I’m part of — it’s called Feudalz
. (Disclaimer: I wasn’t a gamer before doing this, so I’m learning as I go)
In the Feudalz game, you were able to mint NFTs from the genesis collection like with any other NFT drop. Those NFTs were the “Humanz” characters.
Then, you were able to stake your Humanz to earn the in-game token called $GOLDZ on a daily basis. The rarer your Humanz are, the more Goldz they are earning.
What is interesting in the game design is that female Humanz are earning more Goldz than male Humanz, because the artist who created the NFT images is a woman and wanted to use this as a mechanism to give the female characters more value (finally a wage gap in the right direction!).
Here are my two Humanz who are earning me 3.22 Goldz each per day: