DeFi — Transforming An Asset Into A Business

I recently addressed the idea of entrepreneurship and business ownership being reshaped by WEB3 and tokenization. WEB3 enhances and simplifies existing models. Furthermore, much of what occurs in DeFi and other WEB3-related models is passive. I have always regarded passive income as the apex of income generation. The developments within WEB3 and DeFi technology have further supported this viewpoint.

Once you have a foundational understanding of what has been built and what is available within this new realm, it’s difficult to ignore it. Having spent a decade in Crypto, I have been fortunate to witness and experience much of the industry’s maturation. One thing that has become abundantly clear in recent times is the decisive shift towards passive income models and various forms of yield generation.

There are also many semi-passive models. However, these are usually aligned with activities already being conducted by Crypto enthusiasts. Airdrops are an excellent example of this, with many turning to Airdrop farming as an independent income model. Sure, in many cases, this can be a very speculative endeavor. However, significant diversification and exposure can create a wide net and guarantee a substantial return.