Sirwin
Sirwin

YieldNodes January Update

By n1ce | DeFi Adventures | 23 Jan 2023


Originally published on medium


Hi and welcome to this YieldNodes Update for January. I decided to start with a little reminder of what happened so far. Then I will go over the latest news and my observations of what happened with YieldNodes. I am going to close with my thoughts on the situation. Good to have you here!

A little recap

As you might know from the last Updates YieldNodes used to be my best investment of 2022 until it wasn’t. There were heavy gains from ~5% monthly revenue and affiliate signups — that I was super grateful for.

YieldNodes was staking & masternoding their coins and was able to continuously and organically pay out investors in these dividends.

In October, YieldNodes announced that they had to halt withdrawals. This came pretty unexpectedly and as a shock to most investors. Even though I was always telling everyone to only invest what they could afford to lose, I did not expect to lose access to my balance.

Initially many people claimed that YieldNodes was a scam after all and that they were running away with the money. Even though they could’ve done that for almost the last 3 years and decided to stay and create a profit for everyone. Many believed that the YieldNodes team would just be silent and gone. Frankly, the opposite was the case.

Steve and Urs in my eyes did a very good job at communicating the situation to stakeholders: the masternoded coins had dropped drastically in value due to the crypto market crash, the ongoing war and other factors. If they were to pay out investors, everyone would get like 10% of their balance.

They decided to bet big on their initial vision of Decenomy, a decentralised economy — using the masternoded coins to transact value — which was originally planned to roll out later. With the option of getting only a fraction of the deposits or try to rescue the coins and turn this disaster around I believe they made the right decision — even if it upset many people.

Adding one more option in the process: a peer to peer market place where you can sell your existing YieldNodes position at a discount. You are allowed to leave if you find a buyer. I explain this in more detail in my December Update.

We are currently at a minimum discount of 50%, which will rise to 75% over the coming weeks. There are still a few 30% discount offers available but you can see that these are bought:

When I did the research for this article on the 17th of January there were 3 pages of 30% offers left, today, six days later it’s 2.5 pages.
The 50% discount claims started on page 17, now they start on page 15.

Kicking off Decenomy

In a recent mail, Steve kicked off the process to register your company with YieldNodes which means bringing real assets into the Decenomy network.

What does this mean? For a hotel it could mean that you use Decenomy for taking payments instead of Visa or Mastercard which charge quite some fees with 2–3%. In your cockpit you can decide how much of your revenue you want to pay out in FIAT ($ or € for example) and how much in, let’s say $SAPPHIRE — the biggest Decenomy coin.

Bringing these real values into Decenomy increases the demand and could help to increase the value of the coins. It makes them more attractive for saving, masternoding and to transact in this decentralised economy.

For the business it could mean reducing the cost to run their payments which can mean increasing their revenue. A common misconception I understood is that the business would hand over their assets. This is not true as it just means that transactions go over the Decenomy network.

Steve explains this in more detail in his latest interview:

They also plan to give a stage to the biggest/most interesting projects. The full launch of Decenomy is planned for Q4 2023.

According to Steve, in the first 5 days they had 160 submissions for businesses to bring in their assets. They come from many different industries like precious metals, real estate, advertising.

Steve also pledges to add his own hotel business as a beta tester into Decenomy.

My thoughts

With this big goal in mind I think it’s very important to not get too excited. It depends on how many businesses decide to sign up and to actually bring in their assets. It depends on economical macro factors like the whole crypto market. I think there is a chance they will succeed and the benefits could be huge, especially if you get in on a big discount.

On the other hand this is still a very risky investment and more like a very early stage startup that has many hurdles still to take. I really love the open communication that Steve has delivered since the crash. Now we have to see the numbers and the progress in bringing this vision to life.

However, I still plan to sell a part of my balance so it is not completely at risk. If Decenomy succeeds, I am happy with just 60% of my balance.

How about you? Are you affected by the freeze of withdrawals? What are your thoughts on Decenomy?

Let me know here in the comments or on twitter: https://twitter.com/0xn1ce

If you liked this article, please consider voting this up to help me reach more people with my posts or join medium with my link. It does not cost you anything extra but will support my work — thanks!

Join Medium with my referral link

That’s all for today!

n1ce

How do you rate this article?

5


n1ce
n1ce

I love to teach you Decentralized Finance on Fantom and THORChain Follow me on twitter: https://twitter.com/n1ce34007134


DeFi Adventures
DeFi Adventures

Instead of just consuming blogs and resources which taught me quite a bit about blockchain technology and Decentralized Finance, I want to share with you my DeFi Adventures in this blog. Let me know what you think!

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.