Welcome to another quick Zilliqa Zebra video. In this video, let's explore and find out if passive income through proof of stake is sustainable.
Before I proceed, don't forget to like and subscribe to my YouTube channel for the latest scope and updates on all things Zilliqa.
Proof-of-Stake blockchains are arguably the hallmark of passive income in the crypto space.
The Proof of Stake (PoS) concept states that a person can mine or validate block transactions according to how many coins they hold. This means that the more coins owned by a miner, the more mining power they have.
Nevertheless, the model can be unsustainable. As the circulating supply of these projects begins to increase, everyone’s holdings quickly become diluted since most of these projects do not offer extra functionality beyond staking.
The bottom line is that blockchains that offer passive incomein the form of staking need to offer extra products and services to stay profitable, relevant, and sustainable
Some projects drive sustainability in passive income through several economic activities. Tokenization can be used to upgrade yield generation to decentralized financial passive income.
ZilSwap a decentralized exchange (DEX) which allows users to trade digital assets on the Zilliqa blockchain.
Simply put, an individual can put his idle funds to use and generate passive income by becoming a liquidity provider on Zilswap, as an actual functional use case.
This is also why an Zilliqa-Ethereum bridge will create more use cases, it will increase the number of assets to be exchanged at lower rates. This will also drive more liquidity and enable more providers to provide liquidity.
In short, a project built around transactions fees with no economic activity will fail in the long run. Hence it is important for Zilliqa to continue to develop viable products, supported by a strong community and rich partnerships.
I hope this quick explainer is useful for you. Do like the video to encourage me to create more of such videos. Goodbye!
Zilliqa Zebra provides news, updates, how-to, guides and all things related to the Zilliqa, the first public blockchain to implement sharding on its mainnet. Zilliqa Zebra also shares weekly price predictions on Zilliqa.
Zilliqa Zebra is an ardent supporter of the Zilliqa blockchain.
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