Tokenization Creates Simplified & Superior Alternatives
Owning a traditional business comes with red tape, licenses, and other headaches. Furthermore, the management and oversight of a real-world business can be very demanding and exhausting. I managed and owned businesses for much of my working life. A 15-hour workday was common practice for me. As you can imagine, this can begin to take its toll on the body.
The arrival of Crypto, specifically DeFi, was a breath of fresh air that opened the door to new and exciting business models that could function without much management and oversight. For some, this might be relatively unappealing. However, for someone like myself, it was a game changer. For a brief time in 2021, I could extract a full-time income from DeFi-based models such as yield farming and staking.
This was primarily made possible by early entries into projects that increased substantially in value. As a result, the yield being generated was significant enough to produce a full-time income. However, it was short-lived as the bear market arrived in 2022, slashing altcoin valuations by more than 90%. DeFi tokens suffered the heaviest blow, adding more fuel to the fire.
A New Realm Of Possibility
The carnage of 2022 was not an isolated event. Previous crypto bear markets were equally harsh, in fact, more harsh regarding Bitcoin’s price action. Despite being short-lived, it had a positive outcome. It revealed and highlighted an alternative path, abundant with opportunity, especially if traveled with wisdom as a companion.
The foolish application of a brilliant idea is the equivalent of foolishness. Execution is everything, so I have often addressed appropriate ways to approach DeFi as a business model. It is highly seasonal. However, there are various ideas and strategies to overcome these seasonal challenges. DePIN also provides a way to begin building towards such a model. DePIN miners can get their tokens and stake them for additional yield.
When utilized as a strategy with multiple DePIN projects, it becomes significant. GRASS tokens currently earn 40% APR via the official Grass staking protocol. Nodepay’s official staking protocol offers a 70% APR, which is a great way to compound while prices are under pressure. A rinse, repeat, compounding strategy will produce results over the long term. This is an excellent start for anyone wanting to build a passive income.
Additional DeFi investments and strategies can be incorporated, and over time, all of these ideas come together to produce something of value and substance. Don’t despise the day of small beginnings. Furthermore, mining and acquiring top DePIN tokens is a great long-term strategy, especially as the sector is expected to reach $3,5 trillion by 2028. Staking will increase holdings even further.
Data-driven models will become more prevalent as WEB3 matures, and DeFi-based models will play a more significant role. These two sectors operate in harmony and can create a form of synergy if well-designed and implemented. When multiple other WEB3 models, such as SoFi and P2E, are combined, a small private economy emerges.
DePIN offers fantastic opportunities and is an excellent way to supplement a DeFi income portfolio. Utilizing these two niches together can create a flywheel effect, ultimately increasing one’s income portfolio. DePIN income models can feed the DeFi machine, which in turn churns out daily yield on an ongoing basis.
Final Thoughts
WEB3 and tokenization provide viable opportunities for everyday people willing to get stuck in and begin building. I often marvel at what some have managed to build from the ground up. I am encouraged to see what a small opportunity can become when given significant effort and attention. However, few people can think and act this way. Dedication and consistency are key elements of any successful endeavor.
Life has a way of throwing curve balls when we least expect it. However, if we stay on target, the rewards eventually materialize. Strategic approaches often require adjustments due to circumstances and events beyond our control. However, taking them in your stride and heading toward your ultimate destination is essential.
Many opportunities are simply vehicles required to transport you to your destination. If something goes wrong or results are hindered indefinitely, change vehicles. It’s the destination that is important. Keep building and growing along your journey, and I will catch you in the next one!
Sapphire Crypto 