Just recently, CyberKongz holders were earning $800 a day by holding a single NFT. Now, of course, these NFTs are now very expensive. However, they were originally priced at 0.1 ETH or a few hundred dollars each. That's the price point that you would want to get in at. So here's how this is going to work. I am going to share with you And then I'm going to give an example of a project that uses each of those methods to earn passive income.
The first type is what I'm calling NFT dollar drops. Now I came up with this term because I haven't come across a better name for this method yet. So if this term picks up steam, you know where you heard it first. Basically how this works is an NFT project will launch alongside a native token. NFT holders are then rewarded a certain number of tokens on a regular basis simply for holding that NFT. Usually it's done daily. This can be very profitable if the NFT token takes off in price. An example of this, and by no means is this a recommendation to buy, is BearX, a collection of 3,700 genesis bears. By owning a BearX NFT, holders get ten $ROOT tokens a day which, at current prices, is about $10. This means by holding five BearX NFTs that's about $50 a day, If you could manage to purchase five BearX NFTs on the low end, you'd be paying anywhere between $10,000 and $12,000 and this would generate about $1,500 a month, which is a pretty insane ROI.
Now again, income on BearX is subject to the price of the $ROOT token, which could be a little bit concerning. The volume of the chart looks very poor and the price is continuing to decrease. So just be careful before aping yourself into any new project because there are plenty of cool projects like this one, that you can earn money off of. One thing you'll notice about this collection is, they say on their home page $ROOT is made as an extension to the BearX ecosystem and is a utility token but predominantly built for fun.
It is not an investment and has no economic value. This shows me that the BearX creators are well aware of OpenSea's terms of service regarding passive income with NFTs. And it's really important that you understand what I mean here. Regulators may begin to consider income earning NTFs as investment securities. In the US, according to the Supreme Court, anything that meets these four criteria under the Howey rule, are considered an investment security. First, the existence of an investment contract. Second, the formation of a common enterprise. Third, a promise of profits by the issuer, and finally, use of a third party to promote an offering. This means NFTs could be considered securities, especially if they offer passive income. And because of this, OpenSea forbids any NFT project that advertises paying out real passive income to its holders.
Now this isn't a legal issue. OpenSea simply just doesn't want to deal with the bureaucracy of the SEC in case there is an official decision made down the road against passive income with NFTs. So for now, it's a bit of a gray area and you need to proceed with caution and none of this is financial advice. This is all for entertainment purposes only. All right, now that it's only degenerates watching past this point, let's just go ahead and continue, shall we? Because the second type of passive income through NFTs is Profit sharing. This is really interesting. NFT projects make money through direct sales and through royalties on future trades, and certain NFT projects will share this income with NFT holders as a kind of thanks for being a member and an incentive to stay a holder because you keep making money. Now what's really interesting is Now what I mean is if you earn enough passive yield holding your NFT, you may be able to collect enough rewards and sell them off to cover the original cost of your NFT.
That's kind of the big brain method because then you're not worried about the immediate price because you already recouped your entire investment. Now, one project that does profit sharing is called NoiaDucks. They're a collection of 1000 NFTs, which to me kind of looks like CryptoPunks with ducks. Honestly, it's a little bit unoriginal, but either way, they caught my eye when I saw a tweet about the project's generous 100% royalty and 51% profit sharing from the marketplace. Because they have such a low supply of only 1000 ducks, But of course this depends on volume traded. The average NFT here is selling for around $3,000, so it doesn't take much for the community to earn some pretty good income. Now another thing that I want to point out is So here's a few questions that you should ask yourself.
NFTs can be really volatile if something goes wrong in project, and this can just crash the value. If you're going to invest in passive income earning NFT projects, because this will help you ensure you don't miss anything important if you have to sell. Like I said earlier, there's a lot of opportunities, so there's no point in investing in a stinker that is stressing you out. I'll have my free NFT checklist linked in the description for a good starting point. Something else you may be interested in is a better place to buy and sell NFTs. This is because I have partnered with FTX who just expanded their NFT platform in a big way. And the reason I happily partnered with them is not only because I'm a huge SBF fanboy, but because they're making huge improvements within this space. The reason this is special is because of gas fees. I've bought NFTs in the past and it always kills me to pay $50+ just to make the transaction. FTX allows you to buy Ethereum NFTs with no gas fees on bidding, buying, selling or listing NFTs and platform fees are 20% lower than OpenSea.
They're able to do this by offering in-house custody of assets, which also offers great security. FTX is actually the only platform that allows you to purchase both Ethereum and Solana NFTs in one single place, and they're also the first open NFT marketplace to allow mobile trading on their FTX app. I'll have them linked in the description below. The next form of passive income is through NFT staking. This is very similar to the dollar drop method that we mentioned earlier with an additional step of staking. Again, this is smart because it incentivizes people to buy and hold longer term instead of continually flipping their NFTs. One project that does this is Wulfz NFT. Well, currently they don't have a website. They do have a strong community and high engagement on their Twitter. Owners of Wulfz will be able to stake their NFTs in order to earn $AWOO tokens every day. Sometimes I wonder what I'm doing with my life reporting on $AWOO token.
The next form of passive income through NFTs is through mining. This is a really interesting one. So essentially how it works is you would buy an NFT, stake that NFT and then So it's kind of like buying a share in a crypto mining company through an NFT, except I'm sure that they have to legally say they do not offer an expected return on investment, otherwise they would fall into that investment security territory.
Now, one project that's doing this is called Enigma Economy NFT. They're a mining collection that will mine Bitcoin and Ethereum according to their roadmap. This means instead of being paid in an NFT's native token, like $AWOO, you'll be paid in Ethereum or Bitcoin or whatever a project is mining. For Enigma, the amount of Ethereum mined per NFT depends on the rarity traits of the NFT that you purchased and also the earnings that you're making are going to change, of course, depending on the price of Ethereum or whatever you're mining.
So let's say the price of Ethereum stays at $4,000 and you're earning at the low end of half an ETH per year with your Enigma Economy NFT, which is $2,000 per year. To earn $57 a day with NFTs, you need to be making about $1,700 a month. To make close to this amount with these NFTs, you would need to own ten of them. Ten of these at the cheapest price, which is 0.25 ETH would cost around $11,750 for something that makes you $20,000 per year doing nothing. That's not a bad potential investment. However, again, this space is very new and very volatile, so don't ever expect best case scenarios. Now the last type of passive income I want to discuss is renting your NFTs, specifically through play-to-earn games. With many play-to-earn games, you have to buy an expensive NFT upfront in order to then play the game and start actually making money with that game.
Once a game becomes popular, these NFTs can get really expensive and because of this, a new market has cropped up and this actually might be my favorite version of passive income on this entire list. NFT Renting. You see what I'm getting at here. So you can own an NFT that others want to use in a game, and you can start earning money by renting it out. Vulcan Forged is a game that will allow allow exactly this to be possible. Land in the VulcanVerse is an NFT. This land is needed for players to unlock new assets. Those who can't afford to buy NFT land within the VulcanVerse will need to rent it. Those people who rent the land can then play the game and actually start making money from the game.
And this is important because on the Vulcan Forged marketplace, some of the land is insanely expensive, selling for 845 PYR tokens or about $32,000. So as crazy as it is to buy or rent digital land that costs $32,000, like as much as some real land, this is one of my favorite methods for NFT passive income because it's so easy to grasp. You know, renting assets is already a thing. If I want to go drive a tank down my street, I'm going to rent a tank because I definitely don't want to keep up with tank maintenance myself.
So the key to earning passive income with NFTs will be doing a massive amount of research upfront to ensure all the boxes are checked. You want to ensure there's a solid team, a solid idea, and a solid community behind the project to help hedge your downside risk. And if all of that work sounds like too much work, you can always just stick to good old yield farming altcoins or lending out your crypto.
In fact, I just did a video on how to get the best possible rates when lending out your crypto, that you definitely need to check out next. I'll have this clickable on the end screen. So we sure live in the best time ever to make money. This is pretty darn exciting. And if you want more money making content and access to my portfolios, check out my Patreon community, linked in the description, for as little as $10 a month. Now I would just like to thank you so much for watching, and I hope you have a profitable day!.