- Summary:
- Binance has recently launched an NFT staking program at a time when the NFT market is struggling. How does it hope to navigate the waters?
Binance exchange has introduced a new NFT staking program. By participating in this initiative, holders of NFTs will be able to stake them in exchange for APE tokens (ApeCoin). Bored Ape Yacht Club (BAYC) and Mutant Mutant Ape Yacht Club (MAYC) NFT holders are eligible to participate in the staking program, which The program will begin on the 12th of December. 2021.
How Binance plans to leverage staking in a struggling NFT market
Binance’s move is a part of the company’s broader effort to enter the NFT market and compete with OpenSea. However, there are certain conditions that holders must fulfil. First, the NFTs must be listed by owners at 1.1 times the minimum price in order to be considered. In addition, users can only sell their NFTs using a fixed-price listing. The exchange will screenshot each day when qualifying listings are eligible for draw entries. Binance says it will set aside 10 listings for holders of Bored Ape, two listings for Mutant Ape, and one for Kennel.
Binance spot wallets will be credited with ApeCoin rewards every day between 00:00 and 08:00 UTC by the cryptocurrency exchange (UTC). Users will begin receiving incentives the day after they stake the NFTs, and the APR will be calculated daily. Binance has set aside 10,000 ApeCoins as an incentive for this endeavour. The awards will be doled out on a daily basis based on a count of all listings that qualify, as determined by the snapshots taken that day.
The NFT market has been on the downturn in 2022, paling in comparison to its stellar performance in 2021. DappRadar’s November Industry Report, for example, depicts an industry struggling to catch its breath in the face of the colliding headwinds of a weakening crypto market and a drop in productivity from GameFi. Even yet, YUGA Labs’ BAYC and MAYC NFTs continue to rule the industry. As a result, this may pique the interest of many people in joining Binance’s staking program.