DAOs and Nodes as an opportunity for Passive Income in 2022

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It is no more a secret that our world is changing and technology keeps evolving as everyone is trying to keep up so that they can make the most of the opportunities that new technology is bound to create. This is quite evident in the world of cryptocurrency; ever since the first cryptocurrency, i.e. Bitcoin was created, more cryptocurrencies have followed with changes made to the respective protocols and blockchains to ensure the security of funds and transactions. As people started to engage in the trading of cryptocurrencies, more innovations have led to the design of new structures that have expanded the opportunities for people to not only make profits but make meaningful decisions in conjunction with other people.

Governance is carried out by stakeholders

Good examples of such innovations are the DAOs and Nodes. DAO stands for decentralized autonomous organization in which there is no hierarchical structure like in traditional organizations. Instead, power is distributed among everyone that is a member of a specific DAO community thus providing people with a platform to make significant decisions and introduce innovations that have the potential to benefit the community and the DAO as a whole.

In the summer of last year, PleasrDAO made headlines by purchasing the only copy in existence of the album “Once Upon a Time in Shaolin” by the Wu-Tang Clan for $4 million. The sale was not done by one person but rather by members of that community since the DAO runs on blockchain technology and governance is carried out by all stakeholders. Not long after, other DAOs began to gain traction with more traditional investors. This has further enhanced the popularity of DAOs with members of the crypto community predicting that DAOs are the next big trend in the crypto space.

Nodes as sources of passive income

Nodes have gained popularity too as they have proven themselves to be good sources of passive income. The volatility of the cryptocurrency market has been well-documented and according our nature as human beings, we are always looking for something extra in anything we are doing. In the case of crypto, investing in a node project is that extra. Blockchain nodes are used for the storage of a complete copy of the distributed ledger while also being responsible for the reliability of the stored data. These nodes are also useful in the building of blockchain-based applications by developers.

Running a Node is getting easier

Previously, running a node used to be difficult due to the intricacies involved but it has been made much easier now while also opening the door for such individuals to earn some income. The income earned depends on the kind of node an individual invests in as there is a type of node that almost anyone can have and then there is another type that is slightly restricted in terms of accessibility. For this type, the investor needs to hold a certain amount of the network’s token to be eligible and this tends to generate more income compared to the other one where there is unrestricted access.

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DAOs as a new business model?

It is being predicted by experts and analysts that DAOs will be the new LLCs while changing the future of corporations and while there is a concession that DAOs will not necessarily fit every venture or business out there, it is still believed that a lot of features and processes in various companies can be made more productive and effective by adopting the decentralized system seen in DAOs. There has also been a recent surge of mainstream institutional investment in DAOs which signifies growth for the industry. It also shows that there is a likelihood of widespread adoption which is bound to put DAOs in a position where they can potentially compete with traditional organizations and businesses.

Nodes are becoming more common

With nodes, it is predicted that the more people start owning and running nodes either as individuals or as a group, the more nodes are likely to generate more income for their owners. One thing that can be said for certain is that the crypto market is constantly evolving while the goal still revolves around decentralization and giving more power to the people. This is why it is likely that there will be more innovations to improve on the existing ones and to keep creating opportunities for people to be profitable and have their opinions mean something tangible.

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