Masternodes have the potential to become one of the leading sources of returns in the passive income space, according to a report by INDX Capital. INDX, a masternode index fund currently undergoing an STO, looked at a number of typical passive income sources in the traditional finance world, including three within the cryptocurrency field, and found that masternodes have the potential to outstrip the competition by some margin.
Dividends and Stocks Left in the Dust
INDX’s criteria included assessing the barriers to entry, such as the technical and analytical requirements, balanced against the typical yield and the risk factor, giving each one a final score out of 100. The final table showed masternodes clearly leading the way, and dividend stocks loitering in last place:
Despite their low technical and analytical requirements, government bonds and dividend stocks performed poorly because of the vastly inferior returns on offer – around 2-5% per year. Delegated Proof-of-Stake (DPoS) and staking both offer returns in the double figures the study found, while masternodes were streets ahead with over 25% annual returns. INDX acknowledged in the report that masternodes had a higher technical barrier, allied to the risks associated with safe custody of cryptocurrency, but stated that “the rewards can justify the risk and in spectacular fashion.”
INDX Lowers Technical Barriers
INDX is a masternode fund who plan to use an algorithm to buy up and run the most profitable masternodes within the crypto space, soaking up the rewards and dishing out 50% to token holders as quarterly dividends. This means that anyone wanting to make the most of the benefits of the masternode process can do so without having to overcome the technical hurdles associated with them, leaving them free to enjoy the rewards. INDX is alone in its field, as no other project offers the same service, which of course means that there are risks associated with investing in such as fund, just as there are risks associated with any crypto fund. As their study proves however, should they succeed then the rewards could be huge.