> For the complete documentation index, see [llms.txt](https://neftit.gitbook.io/neftit-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://neftit.gitbook.io/neftit-docs/how-it-works.md).

# How It Works?

## 1. Quests & Campaigns

* **Task Types**:
  * *Social*: Follow, retweet, tag friends.
  * *Community*: Join Discord, answer surveys.
  * *On-Chain*: Complete blockchain transactions (Testnet & Mainnet)
* **Project Dashboard**: Real-time tracking of user engagement, NFT claims, and ROI.

## 2. NFT Rewards & Utility

NEFTIT’s NFT rewards are designed to **recognize and incentivize genuine engagement**. Users can earn NFTs by **completing quests**, with three primary rarity tiers: 

* **Rarity Tiers**:

  | Tier      | Drop Rate | Burn Value     |
  | --------- | --------- | -------------- |
  | Common    | 80%       | 5 → 1 Platinum |
  | Rare      | 15%       | 4 → 1 Platinum |
  | Legendary | 5%        | 3 → 1 Platinum |
* **Platinum/Silver/Gold NFTs**:
  * *Gold NFTs* unlock governance voting, VIP event access, and partner airdrops.
* **Dynamic NFT Distribution**

  Not all NFTs are distributed randomly, some are **earned based on user activity**:

  * **Effort-Based NFTs**: Users who engage beyond minimum requirements (e.g., multiple tasks, higher level, creative submissions) may receive **higher-tier NFTs** even from standard campaigns.
  * **Badge Holder Rewards**: Active community members (e.g., OG role, top leaderboard rank) also have higher chance of receiving High-Tier NFTs
  * **Campaign Winners**: Weekly or event-based competitions (e.g., "Top 10 Engagers") grant **guaranteed Legendary NFTs** to the most dedicated participants.

  This system ensures **fairness while rewarding loyalty**, making every interaction meaningful.

## 3. Burn-to-Upgrade

NEFTIT’s **Burn-to-Upgrade** mechanism lets users **convert lower-tier NFTs into rarer, more valuable assets** through a deflationary process.

**How It Works**

1. **Burn 5 Common NFTs** → Receive **1 Platinum Common NFT**
   * *Example*: Burn 5 "Project A Common NFTs" for 1 "NEFTIT Platinum Common."
2. **Burn 5 Platinum Commons** → Receive **1 Silver Common NFT**
   * Unlocks **higher staking rewards** (e.g., +15% APR).
3. **Burn 5 Silver Commons** → Receive **1 Gold Common NFT**
   * **Max utility**: Grants governance power, VIP perks, and exclusive airdrops.

**Why It Matters**

* **Scarcity**: Burning removes NFTs from circulation, increasing value of remaining ones.
* **Progression**: Users advance from casual participants to high-value collectors.
* **Efficiency**: No gas fees for burning (off-chain until final mint).

## 4. NFT Staking

NEFTIT’s staking system allows users to **lock their earned NFTs** to generate passive rewards in **$NEFT tokens**, creating long-term incentives for holding and upgrading NFTs.

**How Staking Works**

1. **Stake Your NFTs**
   * Users can stake **any NFT** (Common, Rare, Epic, or Legendary) from their collection.
   * The longer an NFT is staked, the more **$NEFT tokens** it accumulates.
2. **APR Based on Rarity**
   * **Higher rarity = Higher rewards**:
     * **Common NFTs**: Base APR (e.g., 5% annualized).
     * **Rare NFTs**: 2x multiplier (e.g., 10% APR).
     * **Epic NFTs**: 3x multiplier (e.g., 15% APR).
     * **Legendary NFTs**: 5x+ multiplier (e.g., 25%+ APR).
   * *Example*: Staking 1 **Legendary NFT** could earn **5x more $NEFT** than a Common one.
3. **Flexible Staking Periods**
   * **Short-term (7-30 days)**: Lower yield, but quick access to rewards.
   * **Long-term (90+ days)**: Higher yield + **bonus multipliers** (e.g., +10% for 6-month locks).

**Leaderboard & Bonus Rewards**

* **Weekly/Monthly Rankings**:
  * Top 100 stakers earn **extra $NEFT bonuses** (e.g., +5% for Top 10, +2% for Top 100).
  * **Featured Roles**: Top stakers get exclusive **"Elite Staker"** Discord roles and early access to new features.
* **Special Rewards**:
  * **Mythic NFT Airdrops**: The #1 staker each month receives a **free Mythic NFT**.