How to kick off passive income with DAOs?

How to kick off passive income with DAOs: An overview.

The cryptocurrency market has been on a rollercoaster ride this year. Despite the volatility, there is no denying that interest in cryptocurrencies and blockchain technologies continues to grow in 2021 and will further grow in 2022. Investment in tokenized securities or decentralized autonomous organizations (DAOs) is one of the most exciting areas for investors because it offers the potential for passive income streams with little effort required after buying in. This blog post will provide an overview of DAO opportunities and discuss how you can invest today!

But what is a decentralized autonomous organization (DAO)?

A DAO is an internet community with a shared bank account.

DAOs are often referred to as the first fully decentralized autonomous organizations. They were first conceptualized in 2014 by Vitalik Buterin, but didn’t play a big role for quite some time.

In more detail: DAOs are a relatively new type of organization that operates autonomously through the use of blockchain technology. These organizations have no central authority and can be used to manage everything from fundraising to product development. DAO investors typically hold tokens in the organization that entitle them to voting rights on how the company should be run and profits generated by the DAO.

There are many different DAOs available for investment, and it can be difficult to determine which one is right for you. In this article, we will provide an overview of some of the most popular DAOs and their performance.

A super short look into history:

TheDAO was the first DAO ever created and raised over $150M in its initial crowdfunding campaign. Unfortunately, TheDAO was hacked shortly after being created, which resulted in the loss of roughly $50M.

Since last year and this year, more and more DAOs emerge.

Here is an overview of the recently hot DAOs with their websites, token names and their APY (Annual Percentage Yield):

There is one DAO really standing out: with an incredible APY of 8,569,963,905% and the token $NMS. That means, that your initial investment could go x85.698.639

NMS worth $1 will generate a (compound) interest worth $85.698.639 within one year if the price of one NMS stays stable.

How is that possible? With compound interest: If you stake your NMS, you receive interest in $NMS tokens that will automatically be re-staked and generate additional interest, which will automatically be re-staked and … you get the point.

But the IF condition in the sentence above is very important: “… if the price stays stable”. Actually, the price can easily go down 90% and you would still make a hell lot of money, but the PRICE of NMS is the thing to worry about, not the APY. What if the price goes to 0?

To smoothen investors sleep, Nemesis introduced a backing per $NMS (see below image). But the backing is dropping DAILY.

Official NMS website data

But how to buy?

  1. Sign up at If you use this referral link, you get a 10% discount on all trading fees and I will make a donation to animal charity. SIGNING Up anyway helps you, me and animal charity, no matter if you buy NMS or not.

2. Buy BNB and send it to your Wallet, e.g. MetaMask.

3. Go to and click “BUY NMS” on the top right corner.

4. Trade BNB vs NMS.

5. Stake NMS at

Be sure to only invest SMALL amounts that you are willing to put to very high risk, as there always is a risk of a rug pull or a project simply vanishing.

BUT should you buy?

For me, it’s a fun adventure and it makes sense if you are really early in a DAO. Why? The price is going to be super volatile and will spike from time to time: compount + spike = a lot of money.

For NMS and most other existing DAOs: I think the time to get in and take profits is already over.

If you had bought in early December, you would have lost 45–70% in each DAO. This is partly due to the general decline of BTC in recent weeks, but also due to the fact that most DAOs are scams that the developers use to invest early and sell daily off their profit daily, to cash out.

How do I detect scams?

A DAO is an internet community with a shared bank account. In the case of the aforementioned DAOs, they pay high interest rates.

But where is the money coming from? From new buyers of course, and from additonal income streams. But which income streams?

Most DAOs, especially NMS, has NO VISION at all. There will never be an income stream. How to pay over 5B % interest, if there is no income?

If it’s too good to be true, mostly it’s not true.




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Passion for Tech, Stocks & Crypto. Sharing my latest experiences, learnings, and coins that I consider gems in the Crypto world

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