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Cryptocurrency investors and Masternode lovers alike will be thrilled to know Swarm is tokenizing Dash Masternodes. The decentralized private investment platform Swarm is to launch the DMN Tokens which will provide extended block rewards, voting rights and allow investors to use Dash as a cryptocurrency on Swarm’s ecosystem.
The DMN Run-Down
Investors who purchase DMN Tokens via Swarm’s marketplace will have part ownership in the Dash masternode infrastructure. Apart from these tokens being backed by real-world assets, DMN Token holders will also enjoy interests and fees paid by Dash’s masternodes.
For many investors, especially newcomers who see the Dash masternode price of $250,000 (1,000 Dash) as unfavorable, this is a move in the right direction. Though there are many masternode sharing platforms available, Swarm offers unique benefits, including giving voting rights to owners of DMN tokens through the Liquid Democracy Voting Module, and the operation of the masternode host as a non-profit.
The Future of Tokenization
Masternodes are online computers running Dash wallets that serve as the supporting decision makers for the network. They are essential to the Dash ecosystem and completes their functions using the following services: InstantSend, for instant transactions; PrivateSend, for anonymity; and Decentralized Governance, which gives masternodes the governing powers to make decisions on the network. Tokenization through the DMN tokens will add extra layers of security and inclusivity, this time, not just to the platform, but for investors – who can take invest with minimal investment at no risks.
Whiles this ‘Node as a Service’ collaboration is in its infancy; Swarm plans to extend the service to other platforms over time. On this, Swarm’s CEO and Co-Founder, Philipp Pierper said “Dash is a leader in cryptocurrency, and at Swarm, we have long admired Dash’s focus on community and decentralized governance. Extending access to dash masternode rewards and voting rights to more individuals is the perfect use case of our infrastructure that aligns with our values.” Looking to the future, he added: “We expect this will be the first of many ‘Node as a Service’ opportunities people will tokenize on Swarm to serve their respective communities.”
The Cryptocurrency Investor’s Home-Base
Investments in the cryptocurrency ecosystem are risky to undertake – the high volatility rates, the absence of post-investment liquidity, the challenges of digital asset security, and the fact that cryptocurrencies are not tied to real-world assets, all shy investors away.
To eliminate risks and empower investors to take part in the cryptocurrency ecosystem, Swarm tokenizes real-world assets by leveraging the SRC20 protocol, the first-ever standard for security tokens. In doing so, Swarm completely democratizes real-world assets through the blockchain technology. Swarm thus offers low-level investment opportunities to new crypto market entrants, ensures high returns, and allows assets to be digitally administered and traded.
Swarm’s decentralized legal framework that avoids the traditional hurdles, their peer to peer equity investment system that eliminates intermediaries giving everybody access to large hedge and equity funds, and their ecosystem that ties the crypto market investment interface with traditional investment, will bring new investors into the fold. These features will draw those looking to de-risk their portfolios, those searching for small and alternative investment opportunities while keeping the attention of ordinary day traders
Security Tokens at Forefront
As the cryptocurrency industry surges towards mainstream adoption, investors will need risk-free, high-return investment opportunities like those provided by Swarm. What’s more, Swam’s ability to tokenize other platforms, like Dash Masternodes, is both a step towards the mainstream adoption of cryptocurrencies and a significant move by market leaders moving the ecosystem towards security tokens.