Were you ever told that your sumptuous-looking NFT profile picture is useless and a complete waste of money? Fear not, because, with yield-bearing NFTs, your NFT may now be able to pay for your breakfast, lunch, and dinner. But what is a yield-bearing NFT?
Yield-bearing NFTs are essentially NFTs that generate and pay a return to their holders usually through a process of NFT staking. Think of it as dividends you receive from your equities, but now with NFTs. In the physical world, yields-bearing assets include loans, government bonds, dividend stocks, and treasury bonds.
In this face-paced sector, NFTs have quickly expanded from collectible digital art to new concepts such as NFT staking which provides NFT holders with the passive yield-generating utility on their NFTs. In this article, we will explore and analyze numerous NFTs in the Solana and Ethereum ecosystem to determine the highest yielding NFT in its asset class.
Types of Yield-bearing NFTs
Yield-bearing NFTs can be categorized into Breeding, Customization, Evolution, DeFi Gambling, Infrastructure, Art & Lore, and DAO. Most yield-bearing NFT projects would require holders to stake their NFTs on a selected platform in order to generate rewards. However, some projects like Bōryoku Dragonz rewards its holders through daily airdrops.
Breeding
Since the inception of CryptoKitties & Axie Infinity, the concept of breeding has become popular and sparked a new trend in the NFT sector with numerous projects following in their footsteps. While the concept of NFT breeding may be difficult for an Average Joe to grasp, it is actually what you think it is – using NFTs that can ‘breed’ to produce even more NFTs. This provides benefits such as the ability to produce offspring that can later be sold or traded on the market. Such NFT projects typically have their own community token, which is required to breed the NFTs. One example of a breeding NFT project is Bōryoku Dragonz.
Bōryoku Dragonz
Category: Breeding, Customization, Art & Lore Based, DAO
Chain: Solana
Supply: 1,111$BOKU per Day: 7
Twitter: https://twitter.com/BoryokuDragonz
Marketplace: Magic Eden
One of the most recognized projects on Solana is Bōryoku Dragonz, a collection of 1111 Dragon NFTs that inhabits a post-apocalyptic world where most life forms have been wiped out. This project incentivizes its holders with daily token airdrop, a breeding game with token burning features, and a multi-chain community that goes much beyond a mere profile picture. Bōryoku has a utility token called $BOKU which can be used to breed Baby Boryoku Dragonz, change the name and description of your Bōryoku, upgrade Discord ranks, and more. Each Genesis Bōryoku Dragonz will be able to produce 7 $BOKU per day.
Its daily token airdrop is certainly a good benefit to have. However the true value comes from its strong and tight knitted community filled with frequent collaborations such as whitelist spots for upcoming NFT projects, and alpha’s that members can benefit from. The Bōryoku Dragonz community includes popular members such as @The_Solstice, @JerzyNFT, and @SolEryx.
Currently, the team is working on creating voxels and metaverse related assets for its holders by collaborating with renowned metaverse builder, MetaVenture Studio. Through this collaboration, the team aims to bring more value to its holders with a playable Bōryoku character in The Sandbox Metaverse.
Baby Bōryoku Dragonz
Supply: 5,000
Requirements: 2
genesis Bōryoku Dragonz.
Cost to produce: 972 $BOKU
Days to hatch: 21 Days
Daily Value: 1 $BOKU/day
Marketplace: Magic Eden
Customization
Ever felt that your NFT is one trait away from looking rare and cooler? With NFT customization, certain projects such as Taiyo Robotics allow its NFT holders to change the traits of their NFT through metadata alteration. This seemingly new concept is a unique method to stir community engagement and excitement because instead of trading a complete NFT, holders can now trade traits or parts of their NFT with other holders on secondary marketplaces.
Taiyo Robotics
Category: Breeding, Customization, DAO
Chain: Solana
Supply: 2,121$SCRAP per Day: 8.5
Twitter: https://twitter.com/TaiyoRobotics
Marketplace: Magic Eden
A project that has been given both “Rug” and ”Blue-Chip” titles, Taiyo Robotics is an NFT project that was acquired by Solana NFT marketplace Solport Tom when its former developers gave up on the project. Ever since the project was “de-rugged”, Taiyo is now thriving with real leadership and a proper dev team behind the wheel. In the span of 3 months, the floor price of Taiyo has risen exponentially from 2 SOL to 200 SOL. Additionally, Taiyo has a utility token called $SCRAP which can be earned through staking your Taiyo’s. $SCRAP can be used to breed baby Taiyo’s and also customize your Taiyo’s look with new custom assets. You can check out the customization features here! Each Taiyo will be able to yield 8.5 $SCRAP per day through staking.
On top of that, the team behind Taiyo has also created a custom Solana Marketplace for its holders to enjoy lower transaction costs when trading Taiyo NFTs. Presently, the devs at Taiyo are working on an affiliate marketing service, and also a launchpad to help kickstart new NFT projects on Solana. In the future, Taiyo intends to design a grant program, tools for creators, and a user suite to bring further value to its holders.
Taiyo Infants/IncubatorsSupply: 1,500
Requirements: To produce Taiyo Infants, 2 Taiyo is needed. However, Taiyo has introduced Hotmetal which allowed holders with one Taiyo to produce an infant.
Cost to produce: 1000 $SCRAPDays to hatch: 30 Days
Marketplace: Magic Eden
Evolution
From Pikachu to Raichu, Squirtle to Wartortle, you can now evolve your NFTs just like in Pokémon! With the introduction of NFT evolution, you can now change the characteristics and visual appearance of your NFTs. For example, Bored Apes (BAYC) introduced an evolution feature where holders of a Bored Ape can evolve their Ape into a Mutant Ape, which can only be created when given a vial of “Mutant Serum”, or minting one in the public sale. But why would people want to evolve their NFTs? Because it looks cool. Duh.
DeFi Gambling
DeFi Gambling is a rather unique category in the NFTs space, combining art and gambling into a single product while simultaneously providing owners with yield/returns by owning the NFTs. NFT holders in this category essentially co-own a portion of a casino/gambling business where revenues and profits are distributed to NFT holders, as each NFT symbolizes a piece of ownership on the platform.
Slotie
Category: DeFi Gambling, Breeding
Chain: Ethereum
Supply: 10,000$WATTS per Day: 10Twitter: https://twitter.com/SlotieNft
Marketplace: Opensea
Slotie is a DeFi gambling NFT project that aims to bring together the worlds of DeFi and Casino Gambling by incorporating smart contracts into the gambling world. Holders of a Slotie NFT will be able to breed, stake, and receive up to 20% Rakeback guarantee in more than 150 casinos. As of now, Sloties has been integrated with more than 150 casinos where a 12% commission will be received from each partner. 80% of the commission will then be distributed back to Slotie NFT holders in $WATTS, the utility token of Slotie. According to the team, the rest of the commission will be used for project development such as more casino integrations and game development.
Currently, $WATTS can be used to breed Junior Sloties which will grant holders access to SlotieVerse, the Las Vegas of the metaverse. In the economy, each Slotie NFT can generate 10 $WATTS per day through staking.
Junior SlotieSupply: 10,000
Requirements: 2 Sloties
Cost to produce: 1800 $WATTS
Benefits: Access to Slotieverse, Land Airdrop, Wall of Owners
Marketplace: Opensea
Infrastructure
There are also NFTs projects that provide infrastructure platform-as-a-service (PaaS) to coordinate and maintain access on a blockchain such as dev tools, nodes, cloud storage, security, and RPCs. These NFT projects typically generate value from their services and distribute the earnings to their holders through staking. A good example is Shadowy Super Coder.
Shadowy Super Coder
Category: Infrastructure, DAO
Chain: Solana
Supply: 10,000$SHDW per Day: 27
Twitter: https://twitter.com/GenesysGo
Marketplace: Magic Eden
An NFT project with a veritable use case? That is Shadowy Super Coder DAO (SSC), a well-respected project that builds, configures, and maintains RPC Servers through their own Blockchain Service Provider GenesysGo. As a DAO-based project, each SSC NFT holder is given voting rights for major decisions in the organization. Revenue generated from GenesysGo will be distributed to SSC holders through its utility token $SHDW. $SHDW is a token that is used to pay for Shadow Drive access, and use of the Shadow IDO Platform. Shadow Drive is a decentralized storage solution on Solana that utilizes the speed of Solana to make uploading NFT much faster, whereas Shadow IDO platform is a decentralized IDO platform on Solana that aims to solve the common botting and network congestion that other IDO platform suffers from.
Art & Lore Based
Which one would you rather have, a work of art or art that works for you? This category of NFT projects operates and gains value from art, lore, and community. A captivating story mixed with creative utility and high-quality art that produces daily passive income to users. Does it have real-world utility? Probably not. Does it look cool? Yes.
Mindfolk
Category: Art & Lore Based, Evolution
Chain: Solana
Supply: 777$WOOD per Day: 10
Twitter: https://twitter.com/mindfolkART
Marketplace: Magic Eden
Mindfolk is an Art & Lore based project with 777 Lumberjacks and Carpenters. This project has a utility token called $WOOD which can be saved and redeemed for future collections and other creative developments. The goal is to accumulate $WOOD to build structures such as cabins, boats, and surfboards that can be used to generate higher yields of $WOOD, as well as access to community utility in a shared economy. For example, a cabin can hold up to four Mindfolk, and any Mindfolk in this cabin earns double the amount of $WOOD. If there are additional spaces in the cabin, the cabin owner can rent out places for $WOOD based on offers obtained from other Mindfolk (between 4 and 6 $WOOD). Besides, Mindfolks can also be trained to improve their abilities in resource accumulation and speed of building. In the economy, untrained Mindfolk yields 10 $WOOD per day while a trained lumberjack yields 13 $WOOD per day. If you have a carpenter it’s still 10 $WOOD per day but a carpenter is an efficient builder and can build twice as fast. If you are looking to join a community that values art, lore, and creativity, Mindfolk is definitely a great place to start.
Mindfolk CabinSupply: 333
Requirements: 1 Mindfolk
Cost to produce: 1200 $WOODDays to complete: 3-6 weeks
Benefits: X2 $WOOD yield for Mindfolks
Mindfolk Boat
Supply: 222
Requirements: 1 Mindfolk
Cost to produce: 2222 $WOOD
Days to complete: 4-8 weeks
Benefits: Can be used to travel to find new land and obtain spores which will evolve into $WOOD
Mindfolk Surfboards
Supply: 555
Requirements: 1 Mindfolk
Cost to produce: 100-160 $WOOD
Days to complete: 3-6 days
Benefits: Private club and discord chat. Increased chances of a successful trip on Boat voyage.
DAO
Decentralized Autonomous Organizations (DAOs) are rising in popularity in the NFT sector. Numerous NFT collections have implemented a DAO-based structure in their community to help with governance.
Doge Capital
Category: DAO, Customization
Chain: Solana
Supply: 5000$DAWG per Day: 5
Twitter: https://twitter.com/thedogecapital
Marketplace: Magic Eden
Doge Capital is an NFT collection with a DAO-based structure where Doge NFT holders can collectively vote on certain decisions such as community project initiatives, partnerships, and suggestions. Besides that, Doge Capital also has a treasury wallet called “Woof Bank” where holders can vote to purchase and own Blue-chip NFTs together without spending tens of thousands of dollars. Each Doge holders can stake their NFT for $DAWG, a meme token with utility that can be used to give their Doges custom name & description.
Since the inception of Doge Capital, the team behind it has been constantly executing its roadmap through the introduction of merch stores, staking, community fund wallets, custom verification bot, a “name your doge” service, and ongoing development on a crypto game. By the end of 2022, the team aims to launch its DC Launchpad, DogeHouses, Mutations feature, Blue-Chip NFT renting platform, and a Crypto Savings Protocol.
Other Notable Passive Income NFTs
Degen Coin Flip
Category: DeFi Gambling
Chain: Solana
Supply: 555$SOL per Day: 0.35
Twitter: https://twitter.com/degencoinflip
Marketplace: Magic Eden
Degen Coin Flip (DCF) is a DeFi Gambling platform on Solana with a smart contract that allows users to play Double or Nothing with their Solana (SOL), with each coin flip having 50/50 odds of landing on heads or tails. In just a span of a few months, DCF’s gambling platform has attracted over $50 million in gambling volume. Degen Coin Flip provides its NFT holders with a 3.5% fee generated from the platform, giving their holders a continued revenue stream. Currently, just three out of 555 DCF are listed on the Solana NFT marketplace MagicEden, indicating high scarcity.
The Lion Cats
Category: Breeding, Customization, Evolution, DAO
Chain: SolanaSupply: 799$IMBA per Day: 30
Twitter: https://twitter.com/TheLionCatsNFT
Marketplace: Magic Eden
Lion Cats is a collection of 799 cats that look like lions that can be bred and customized. Benefits of Lion Cats include NFT staking that rewards member with a utility token called $IMBA. $IMBA is a key element that is needed to breed existing Lion Cats for a Baby Lion Cat. It can also be used to change the characteristics and metadata of the Lion Cats. Each Lion Cat generates 30 $IMBA per day. However, the yield can be doubled to 60 $IMBA per day if holders choose to lock their Lion Cats within the “Savannah” for 18 days without any rewards.
Baby Lion CatsSupply: 469Requirements: 1 Lion CatDays to hatch: 21 Days or 17.5 Days if you have more than one Lion Cat
CyberKongz
Category: Breeding, Customization, Evolution
Chain: Ethereum
Supply: 1,000$BANANA per Day: 10
Twitter: https://twitter.com/CyberKongz
Marketplace: Opensea
By being the first NFT project to implement passive earnings through coins or tokens, Genesis CyberKongz is labeled as the GrandDaddy of passive income NFTs. Owning a Genesis CyberKongz include benefits such as access to a private discord server with an extremely strong community, a playable avatar in The Sandbox Universe, full commercial rights on all CyberKongz assets, and advanced Tokongnomics for their $BANANA utility token. Each genesis CyberKongz has the ability to yield 10 $BANANA per day for the next 10 years. Holders can use the $BANANA token to give their CyberKongz attributes such as a unique name and biography. Besides, $BANANA is also a key element required to breed and incubate Baby CyberKongz.
Baby CyberKongzSupply: 4000Requirements: 2 genesis CyberKongz Cost to produce: 600 $BANANABenefits: Access to exclusive channels in CyberKongz Discord server
CyberKongz VXCyberKongz can now join the metaverse in the form of 15,000 voxel-based avatars built to be used within The Sandbox.Free mint is given to Genesis CyberKongz & baby CyberKongz owners.
The Idols
Category: Staking
Chain: Ethereum
Supply: 10,000$stETH per Day: T/2500*L (T – Treasury, L – Lido APY)
Twitter: https://twitter.com/TheIdolsNFT
Marketplace: Opensea
The Idols is the first-ever NFT project with its intrinsic value backed by staked ETH (stETH), where 100% of the ETH raised through the mint will be converted into stETH. Holders of Idols NFT will be able to claim and bond their stETH in the community treasury to obtain $VIRTUE, a non-mintable token that can be staked within the protocol to receive a 7.5% commission on all secondary sales. As more royalties are distributed to $VIRTUE investors, the staking yield for $VIRTUE rises. With this new concept, Idols NFT holders will be able to receive continued rewards in stETH.
Conclusion
Though passive yields can be generated from NFTs, sustainability is still an issue that remains unsolved. Utility tokens that are rewarded to holders tend to decrease in value overtime, usually due to lack of practical use cases and poor tokenomics. One example is Smooth Love Potion (SPL), a reward token on Axie Infinity that lost 95% of its value in just a span of a few months, and the developers have been actively tweaking the mechanics to prop up its value. To achieve price sustainability, developers will need to frequently provide a good reason for holders to accumulate and hold before selling pressure begins. Furthermore, price volatility is a prevalent problem for certain utility tokens with low liquidity, as prices can be easily manipulated with a low amount of capital. However, not all projects reward their holders with their own utility tokens; For example, Degen Coin Flip rewards its holders in Solana (SOL).
Before investing in any NFT project, it is vital to understand that different projects provide value to their holders in different ways, whether through alphas, relationships, roadmaps, good art, or yield/return. The value of a project should not be determined solely by its passive yield, but other aspects of it that appeal to you. Looking to explore this new space? You can check out the NFTs we’ve mentioned above, and other similar ones on OpenSea and Magic Eden!