We have a lot of opportunities on Hive. This is something that gets overlooked by many. When seeking out growth, it is not necessary to be the biggest or best known.
Sometimes projects that fly under the radar can perform quite well.
We recently discussed the EDS income token. This is something that I want to highlight again, this time putting it in a larger content.
To me, this is one of those buy and hold forever. While there can always be circumstances where selling is necessary, the preferred is to keep garnering yield.
In this article, we will not go into the details of how things operate. There are plenty of post by the @eddie-earner account detailing that.
For now, we will just deal with the numbers.
High APY
As we can see from this chart, the APY on EDS is significant. It peaked out about 35% and is now heading down. This is by design as the token is distributed to those who delegated HP to the account.
This is expanding the supply while also affecting the return. This is a near term situation which keeps pushing the yield down. The distribution of the HP rewards are split between the account and those delegating. What this means is there will be a lag between the growth in EDS supply versus the HP added.
It is estimated this will bottom around 18% before turning back up. Once the 500K EDS are distributed, that is all there is. At that point, the curation rewards will be growing on a weekly basis.
Here is where the APY keeps building.
From the chart above, we can see how quickly it went from about 23% to 35%. We will not presume such a rapid ascent. Instead, for the sake of discussion, we will opt for a nice middle of the road APY.
25% APY
What happens when EDS yields a return of 25% APY. Keep in mind this is below where it is now. Nevertheless, let us focus upon this to illustrate what type of numbers we are looking at.
Here are the parameters:
- $1,000 invested
- 25%
- 20 years
- monthly compounding
Results from Investor.Gov
Notice how $1,000 can turn into almost $141,000. This is the magic of compound interest over time.
Here we have a project on Hive that provides a solid return and will do so for decades to come. As long as Hive is running, this will keep producing.
30% APY
Using the same parameters but changing the APY to 30% instead of 25%.
Here is what we get:
This is incredible. Now we are looking at turning $1,000 into $375K.
Granted it will take 20 years and, since we are on a decline for the next couple years in terms of the return, it will take a return about the 30% to offset that. However, with this average, we can see how it will generate returns that could build a huge amount of wealth.
Nevertheless, these two examples shows the potential of a small project like EDS. This is something that few on Hive are aware of, or care about. However, for those holding the token, liquid $HIVE shows up each week. This provides a steady return that is growing over time.
The point is that it doesn't require too many projects like this before one is sitting on a huge sum of money.
So while speculation is exciting and everyone chases the Lambos and mooning, something like Steady Eddie is there to generate wealth over time.
It is amazing how big things can get over decades with a decent return.
This is something traditional finance does not offer to most people.
Article by @taskmaster4450le