Bitcoin

New proposals for generating passive income

With the entry into the scene of the Proof of Stake or PoS consensus mechanism in the blockchain ecosystem The creation of passive income for millions of users had been unthinkable until then.

While with the advent of Bitcoin and the algorithm under which the ‘PoW’ mainnet runs, mining has been the most common and primitive way to generate income in the crypto ecosystem, it is also no less true than the increase in the difficulty of As its price rose parabolically, it became difficult for the average user to access forms other than trading as a major passive income activity.

With more than USD 43,603 million in “Stakin1.12% of the total market capitalization size of the total cryptocurrency market Set rewardsThe universe is quite large in terms of options for generating passive income through this practice.

New proposals for generating passive income
New proposals for generating passive income

Well until now, lThe most primitive forms that staking involved in its first phase were, so to speak, blocking tokens of the standard ERC-20 type or similar. to generate passive income, in addition to the master node and credit options available between the various blockchain platforms running under the PoS.

But how everything develops and creativity is the order of the day We recently saw that under the premise “Mark out “, but to take this opportunity to include material assets from the real world, beyond the fungible tokens that we are used to.

By doing this, we find three options that can be disruptive to digital asset staking out for years to come: NFTs, synthetic assets, and even legal tender digital currencies. Let’s look at the options.

1.- Synthetix

The platform specializes in minting and manufacturing synthetic tokens or assets, a type of derivativeWhen you need the underlying resource, create what is known as the “synth” by placing the SNX platform’s native token as security.

The synthetic asset system eliminates many of the legal and practical issues that previously prevented tokenized assets from becoming more than niche applications.

With the platform synthetic assets such as fiat currencies «Forex“, Cryptocurrencies and goods”raw materials», New synths can be traded, exchanged or created without any dependency on counterparties, using SNX tokens as security.

In this way, the average user who owns SNX tokens can have incentives to block their tokens and participate in the protocol, in addition to minting new synthesizers.

2.- Kira Network

The platform is designed to enable users in the DeFi sector of Earn block rewards and fees for ‘To block‘Every digital asset in several chains at the same time.

Kira provides market access for all digital tokens in the crypto ecosystem that helps users generate income with ‘bet’Your BTC, ETH, ATOM, DOT, NFT and even real assets such as digital currencies for legal tender.

The novelty of the Liquid Staking proposal is that while they generate income by wagering their tokens or assets, their liquidity is not blocked in their wallets and users can continue to trade or participate in DeFi projects while generating income.

According to its official blog, KIRA aims to build the first cryptocurrency ecosystem that is powered by the liquidity of the tokens in question and in which real assets can be used to protect blockchain applications.

In addition, Kira enables cross-chain interoperability and trustless and permissionless trading in assets that come from independent blockchains.

Currently, the platform is thought of as one of the few options that will allow investors to continuously generate equity income and retain the ability to trade the original assets at any time.

Its technical capacity lies in the use of Cosmos Cross Chain Protocols (IBC) and Polkadot Cross Chain Messaging Protocol (XCMP), the so-called Internet of Blockchains. mentioned in connection with the proposed participation mechanism Multi-Bonded Proof of Stake (MBPoS) or Proof of Stake of several bonds.

3.- Coin’s E-Den

The platform ofNFT Farming ‘ suggested by the popular Marguerite deCourcelle, better known as coin_artist, CEO of Blockade Games, was one of the novelties of this year regarding “Mark out‘Traditional is concerned.

Support of graphic, music and video game art as well as artist design “Cyberpunk‘, The platform enables the holders of domestic tokens to receive COIN, CRED and a ‘passive income.Allies“Rotate to Win”Fragments‘Of coveted pieces from a secret coin safe, as can be seen on his website.

On this occasion, each artistic work is stamped as NFT and is located in a vault for the respective cultivation or trade. Each NFT is broken down into a finite supply of ERC-20 tokens, which can be transferred as divisible parts of the original piece, so-called fragments.

Thus, each owner of a fragment of this NFT allows him passive income for every trade of this NFT, proportional to the percentage he holds in the balance of the token used on the platform.

This time the shards represent liquid parts of the underlying piece, which means that the holders can freely exchange them. At the same time, all shard holders can exchange their shares for ETH when purchasing a main piece in full.

Conclusion

As we’ve seen, there are novel and varied ways to earn passive income through staking. Aside from blocking fungible digital assets as we used to do, it is now possible to think about passive performance by blocking works of art, music, photographs, and even material assets from the real world.

The technology is still evolving and new ways are sure to come to us to be able to use our digital assets that we have in our wallets without having to completely part with them.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and business move is associated with risks. You must do your own research when making a decision.

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