npub1mu…kqv3e on Nostr: There are different forms but you give it to a smart contract and (often) receive a ...

There are different forms but you give it to a smart contract and (often) receive a secondary token that allows you to vote on the actions of the organization you gave it to. So your staking is kinda like buying stock in a company. Your money is tied up but you get a say in what happens. Well, depending on how these things are organized you can get all sorts of cool stuff. You could have a DAO that instead of staking for votes could stake for a pooled treasury that then makes investments and pools returns. Kinda like a mutual fund. (Concave Co-op)

You could have an existing platform that generates income from providing a service like options contracts that charges a fee for that service. Buying and staking the governance tokens allows you to vote in the platform but you also get a claim on the platform income! (Ribbon Dao). Then the derivatives kick in and the votes themselves can be sold and a 'bribe' market can be established where one can sell their governance votes thus getting paid platform fees AND for governance votes. Redacted Cartel is the first I have seen do this on an industrial scale with their Hidden Hand platform.

There are more and there will be MANY more similar things like this coming out with staking. NFTs are going to enter the staking world here soon and we are going to see these type of things bleeding into the real world. I am waiting for someone to figure out how to own and subdivide a property, like a vacation home, or a private jet using these tools. Holding 1/365th of the tokens entitles you to stay at the property for a day OR you get the income from that day if you stake it back into the property's DAO and it rents. Not all days are the same though so there will spring up a market where I can trade my Tuesday through Saturday in May for your Valentines day...

Its sick as fuck and all these boring maxis are missing out.