NFTs, or non-fungible tokens, have taken the world by storm, allowing people to own digital assets that cannot be replicated or replaced. NFTs have been used to represent various forms of digital art, music, videos, and even tweets. However, many people are also interested in the potential of earning passive income through NFTs. In this article, we'll explore which NFTs can earn you passive income.
1. Royalties on Resales
One of the most popular ways to earn passive income through NFTs is by setting a royalty fee on the resale of the NFT. When you create an NFT, you have the option to set a royalty fee, which means that every time the NFT is sold in the future, you will receive a percentage of the sale price. This can range from 5% to as much as 20%, depending on the platform and the creator's preferences.
Platforms like Nifty Gateway, SuperRare, OpenSea, Blur, EtcPlanets and Foundation all allow creators to set royalties on their NFTs. This means that even if you sell your NFT initially for a lower price, you can continue to earn money every time it is sold in the future.
2. Staking NFTs
Staking NFTs is another way to earn passive income. Some NFT platforms allow users to stake their NFTs, which means that they are locked up for a certain period, during which the owner earns a return on their investment. The return on staking can vary depending on the platform and the specific NFT, but it can range from 2% to 10% annually.
3. Fractional Ownership
Fractional ownership is another way to earn passive income through NFTs. This involves splitting an NFT into smaller pieces and selling them to multiple buyers. Each buyer owns a fraction of the NFT and can earn a portion of the revenue generated by the NFT, such as the royalties on resales.
Platforms like Fractional and NIFTEX specialize in fractional ownership of NFTs. They allow users to create fractional shares of their NFTs and sell them to interested buyers. This way, owners can earn passive income on their NFTs without having to sell the entire asset.
4. Gaming and Metaverse NFTs
Finally, NFTs related to gaming and metaverse platforms can also earn passive income. Games like Axie Infinity, Decentraland, Big Time, Illuvium, and The Sandbox all have NFTs that can be earned or purchased in-game and can be used to generate income through gameplay or by renting them out to other players.
Metaverse platforms like Decentraland and Somnium Space allow users to purchase virtual real estate using NFTs, which can be rented out to other users or used to host events, earning the owner passive income.
In conclusion, NFTs offer a wide range of options for earning passive income. Whether it's through royalties on resales, staking, fractional ownership, gaming, or metaverse platforms, there are many ways to make money with NFTs. As the NFT market continues to evolve, we can expect even more opportunities for earning passive income through these unique digital assets.