Tokenized Income
yield model
Tokenized Income refers to the process of converting a recurring income stream — such as rent, royalties, staking rewards, or interest — into a tokenized asset that can be bought, sold, or transferred on a blockchain. These income-bearing tokens represent future cash flows and are programmable, composable, and interoperable across DeFi protocols. Tokenized income unlocks liquidity from long-term yield and introduces new financial tools for passive earnings and risk management.
Use Case: An artist receives monthly streaming royalties and chooses to tokenize 12 months of projected income as a tradable NFT. Investors can purchase the token, earn the income stream, and resell it on a secondary marketplace, while the artist gets upfront capital.
Key Concepts:
- Yield-Bearing Stablecoin — Stablecoins that generate passive income while maintaining peg stability.
- Future Cash Flow Trading — Tokenized income streams traded based on expected payouts.
- DeFi Passive Income Strategies — Approaches to earning yield in decentralized finance with minimal active management.
- Programmable Royalties — Automated payout logic embedded in token or contract structures.
Summary: Tokenized income transforms recurring earnings into digital assets that can be freely traded, split, or composited within the DeFi ecosystem. This innovation turns passive yield into active capital, empowering both creators and investors to unlock liquidity without losing ownership.