# Dummy NFTs: Solving Hard Staking Problems

One of the biggest trade-offs in traditional NFT staking is losing access to holder perks ,roles, gated content, giveaways, just because your NFT is locked in a contract.

Illiquid solves this through a unique dual-token system: When an NFT is staked, the protocol automatically mints a non-transferable “Dummy NFT” to the staker’s wallet. This Dummy NFT cannot be traded, but it maintains your holder status, so you still qualify for:

* Discord roles
* Holder-only giveaways
* Protocol-gated experiences Once the original loan is repaid and the real NFT is withdrawn, the Dummy NFT self-burns.

This ensures you don’t lose your identity or utility just because you’re using the protocol, staking and participation should never cost you community access.
