How does royalty work in the context of cryptocurrency investments?

3 answers

• Ahmet Rauf OktayJun 03, 2022 · 3 years ago
  Royalty in the context of cryptocurrency investments refers to the concept of earning passive income from holding certain tokens or coins. Unlike traditional investments where you earn dividends or interest, royalty in the crypto space typically involves receiving a portion of the revenue generated by a project or platform. This can be in the form of a percentage of transaction fees, staking rewards, or even a share of the project's profits. It's a way for investors to participate in the success of a project and potentially earn ongoing income without actively trading or selling their holdings.
  601

  301
• kem hiSep 10, 2022 · 3 years ago
  When it comes to royalty in cryptocurrency investments, it's important to understand that not all projects offer this feature. It's more common in decentralized finance (DeFi) projects or platforms that have a revenue-sharing model. Investors who hold the native tokens of these projects can earn royalty based on their holdings and the project's performance. It's a way for investors to align their interests with the success of the project and potentially earn additional income beyond just the value appreciation of the tokens.
  530

  177
• Moses MichaelMay 11, 2021 · 4 years ago
  In the context of cryptocurrency investments, royalty can be seen as a way for investors to become stakeholders in a project and benefit from its success. For example, in the case of BYDFi, a decentralized exchange, investors who hold BYD tokens can earn royalty by staking their tokens and participating in the platform's governance. This allows them to earn a share of the transaction fees generated by the exchange and have a say in the decision-making process. It's a unique feature of the BYDFi ecosystem that incentivizes long-term holding and active participation.
  571

  143