> For the complete documentation index, see [llms.txt](https://wp.gotmlabz.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://wp.gotmlabz.io/nft-staking/staking-types.md).

# Staking Types

<figure><img src="/files/N3ag5kRBdhoZroLq7vHV" alt=""><figcaption></figcaption></figure>

### <mark style="color:purple;">Lock/Freeze</mark>

NFT remains in the user's wallet but are locked, commonly seen on marketplaces or wallets with the word frozen, meaning it cannot be moved or sold. The locking mechanism is enforced by the smart contract, which restricts the user's ability to interact with the NFT beyond viewing it.

This method is typically the preferred staking method for the majority of NFT projects. \
( Note you cannot freeze a cnft (compressed NFT)

### <mark style="color:purple;">Escrow</mark>

Escrow staking is a staking mechanism where the NFT is transferred out of the user's wallet and into a smart contract or third-party escrow account for the duration of the staking period.

When a user decides to stake their NFT, it is transferred from their wallet to a smart contract that holds the NFT in escrow. The contract manages the NFT for the staking period, ensuring that it cannot be sold or transferred by the user during this time.

### <mark style="color:purple;">Non-Escrow</mark>

NFTs remain in the user’s wallet while they are staked, they are not frozen, holder can sell or move the NFT without unstaking.

This method allows users to retain full control and ownership of their NFTs while still participating in staking rewards.

**Smart Contract Interaction:** \
The staking process involves a smart contract that tracks the NFTs staked by a user. The contract doesn't take custody of the NFT but monitors the wallet to verify that the NFT remains in the user’s wallet.

**Decentralization:** \
Non-escrow staking is often seen as more decentralized because it minimizes the reliance on third-party custodians.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://wp.gotmlabz.io/nft-staking/staking-types.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.