As the use of cryptocurrency rises, so do the ways it may be utilized. One way that investors are utilizing the platform is through investment opportunities that provide passive income. This is done via DAO’s, such as FantOHM, which we’ll discuss later.
But just to get you excited, FantOHM is currently posting an APY of over 105,000% and a 10% five-day return on investment! Crazy, right?
What is a DAO?
A decentralized autonomous organization (DAO) is a company without centralized leadership. Decisions are made at the grassroots level, governed by a community that has established rules and enforces them on a blockchain.
DAOs are self-organized organizations that exist online and are owned and governed by their members. They have built-in treasuries that can only be accessed with the approval of their members. Decisions on the group’s behalf are made via proposals presented during a set time frame.
A DAO is a decentralized autonomous organization that has no hierarchical management and can execute a wide range of activities. Freelance networks where contractors pool their money to pay for software subscriptions, charity organizations where members vote on donations, and venture capital firms owned by a group are all possible applications of these organizations.
It’s crucial to separate a DAO, an internet-native business, from The DAO, one of the first organizations of its kind. In 2016, the project called The DAO was formed and ultimately failed, causing a significant division in the Ethereum network.
How does a DAO work?
A DAO (Decentralized Autonomous Organization) is a company that makes decisions from the bottom-up, with a group of people holding it. A token may be used to participate in a DAO in a variety of ways.
DAO’s operate using smart contracts. Smart contracts are a type of computer code that executes automatically when certain conditions are fulfilled. Smart contracts have been used since Ethereum was the first to utilize them, although they are now deployed on multiple blockchains.
The DAO’s rules are established by the smart contracts. Those invested in a DAO have voting rights and may vote on or create governance proposals that will shape how the organization functions.
This method disables DAOs from being inundated with proposals: A proposal will only be accepted if a majority of stakeholders approves it. The manner in which the majority is reached varies from DAO to DAO, and it is outlined in the smart contracts.
DAOs are completely autonomous and transparent. Anyone may view the code of any DAO because they operate on open-source blockchains. All financial transactions are recorded on the blockchain, thus anyone may audit the built-in treasuries.
A Look at FantOHM
According to its website, “The primary function of FantOHM is to provide a safe place to park returns during waiting periods while allowing holders of FHM to earn a passive income through compound interest.”
Stakers stake their FHM tokens in return for more FHM tokens, while bonders provide LP or other viable tokens (MIM, DAI, etc.) in exchange for discounted FHM tokens after a fixed vesting period (meaning your tokens will be dripped to you bit by bit).
You can purchase or swap for FHM tokens on SpookySwap. Watch this video below to learn more.
Where is FantOHM Headed?
FantOHM is moving to become a leader in stablecoin. Announced this week, FantOHM has created USDB on the back of FHM. This will be a huge boost to FHM and the platform, burning FHM and creating scarcity.
Put your money to work for you
Get up to 32% APR on your stablecoins paid out in #stablecoins .
No risk of capital loss, guaranteed!
Join us on the 25th of March to find out more!https://t.co/OQCzj4v97P#usdb #DeFi $usdb pic.twitter.com/rzJjqF4lJJ
— USDB (@USDB_) March 5, 2022
This is the first step in our journey of innovation and scalability.
Check it out:https://t.co/udFPAJ8jDD
— USDB (@USDB_) March 8, 2022
Why is this Great for FHM Holders?
This will be a huge boost to FHM and the platform, burning FHM to create USBD and creating scarcity. The idea is this will drive up the value of FHM’s price. Greater price and staking results in greater returns for FHM holders.
We encourage you to do your own research before investing in any product. But FantOHM is certainly an amazing opportunity that, if managed properly, could greatly benefit its community and create the passive income that everyone desires. Along with the platforms move to introduce USDB as one of its products, it’s on its way to becoming a leader in DeFi and DAO’s.
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