Data-Driven WEB3 & DeFi Business Models

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11 Jan 2025

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 largely 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% across the board. 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 smart idea is the equivalent of foolishness. Execution is everything, and this is why I have often addressed appropriate ways to approach DeFi as a business model. It is extremely 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. According to Nodepay’s official blog, staking will also be available for the NC token once it goes live. A rinse, repeat, compounding strategy will produce results over the long term. This is a great 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 play a more significant role. These two sectors operate in harmony and can create a form of synergy if well-designed and implemented. Combine multiple other WEB3 models such as SoFi and P2E and a small private economy begins to emerge. Check out some of my favorite DePINs for 2025!

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Final Thoughts
WEB3 and tokenization provide viable opportunities for everyday people willing to get stuck in and begin building. I often marvel at some of the accounts on Hive that were built from the ground up. I am encouraged to see what a small opportunity can become when given significant effort. However, few people can think and act this way. Kudos to them, they deserve it! See you next time!

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Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.