The problem

When looking at the current state of passive yield generation projects, we can quickly identify a number of fundamental issues that have not been addressed by the majority of projects.

A large number of projects initially focus on generating passive income solely through financial transactions, without focusing on a real use case or utility to their token. Their sole purpose is to drive volume, this eventually leads to stagnation, decline and ultimately signs the end of their project as it is no longer viable without a high trading volume.

There has been a large rise in the number of projects that utilize reflections as their primary form of yield generation. Initially these projects thrive on hype, however many crash very quickly or the project’s reputation is damaged beyond repair.

Some projects focus heavily on transaction-based revenue generation without building a use-case or utility. These projects favor and stimulate short-term incentives and gains with no long-term goal. Others may have a long-term goal and utility in mind but lack the short-term incentives that engage investors during the development timeframe. There needs to be a smart balance in order to attract new investors while maintaining community confidence, therefore reducing the risk for all investors. Only a limited number of projects have shown success in balancing short and long term incentives, but those that do often see immeasurable success.

In our view, utility should always drive volume. We understand the importance of both short-term and long term rewards, with both being vitally important in order to attract and retain investors throughout the lifetime of a project. Use cases and utility cannot exist without trading volume and revenue, however this volume and revenue cannot be sustained without utility. Passive Income solves this fundamental problem with the use of multiple value streams and a growth-driven approach while also implementing a passive yield generation through transaction volume.