I have started to map out the various tokens on Hive and today I will take a look at the passive income tokens that are available. The importance of passive income tokens cannot be underestimated because they are the ones that continue to make you an income without any work from your side.
I have made this mind map of the various Hive tokens that you can collect and although the list is not complete, it gives an idea of the various token types and the huge Hive ecosystem that is available.
It is important to look at this table first because we actually have passive income from tokens in the different areas here that may surprise you.
Let's go through the different sections together and look at the options available.
Play2Earn
You may be thinking, is there any passive income in play2earn games? Let me answer that with a categorical yes.
Here we have some games that are not launched yet even and you can stake their tokens and earn some passive income such as with Woo, CraftInk or Genesis Soccer League. These tokens allow you to earn more of the token by staking it. This is obviously risky if you are buying tokens from games not released yet, but it is an option.
Some games allow holding packs or their native token to earn you a passive income such as dCrops or dCity. These two games actually pay you daily in Hive.
The biggest play2earn game Splinterlands, allows you to earn from staking plus in their liquidity pools giving even more options to earn.
Tipping Tokens
Another surprise entry for passive income tokens you may think are tipping tokens.
One here in particular is the LOL token that pays holders over a certain value regular passive income each day.
Considering that I did not buy any LOLZ tokens, my returns % is through the roof and it is for sure a token that I would like to stack more of.
Mining Tokens
Here is just a small selection of the many mining tokens available.
They work in a sort of lottery system on the Hive Engine and produce the tribe tokens daily split between the lucky holders who are selected.
Here I have received some ALIVE tokens from my ALIVE miner tokens.
The WORKERBEE token is an interesting token because you get some income but it also acts as a governance token for the Hive Engine and increases your vote strength for the Hive Engine witnesses.
Income Tokens
Income tokens are very popular and can provide a steady passive income.
They can work in different ways and provide different tokens as part of their passive income. Index has a fund of the many Hive Engine tokens and provides dividends of these. You can also make proposals to what tokens should be held by the fund.
EDS and SPI are also funds providing steady dividends and have a track record of capital growth too. EDS is mined from the great EDSMM token.
DHEDGE provides daily "drips" of various tokens to your wallet and there is a daily report produced confirming the APR% which can fluctuate.
Some of the tokens provide not only passive income, but capital growth in the token itself, although you need to be aware of any impermanent losses or gains that you may have.
Summary
There are a variety of passive income tokens on Hive and they can work in different ways. It is important before investing in any tokens to do some due diligence on the team behind the token, their track record, read the whitepaper if there is one and make sure to understand where the income is coming from and if it is sustainable.
A benchmark that I like to use when looking at passive income tokens is that with Hive, I can earn the 3% directly and then maybe another 8% from curation, giving around 11%ish return. Therefore I would like to get a higher return than this.
Thanks for reading.
Giveaway :
Do you have any favorite passive income tokens?
Let me know in the comments for a chance to win 5 DHEDGE.
Credits : All screenshots from the mindmap created in Aloya App source by myself.
Title image created in canva using image source from Pixabay.
Mining image created in canva using image source from Pixabay.
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