Hidden Gems: 6 Reasons to Invest in district0x DNT
district0x is a network of decentralized communities and marketplaces called “districts”. These districts are websites that are built using a blockchain-based framework which utilizes Ethereum smart contracts. The ultimate goal of the district0x project is to allow all internet users, even non-technical ones, to build and have a say in the operation of online platforms – it will allow everyone to shape the future of the internet.
This project has mostly flown under the radar since its ICO successfully finished in August 2017. Even after being listed on big exchanges like Binance and Upbit, the market cap of the district0x token, DNT, is still criminally low at $100 million. The slow growth of district0x is not due to a lack of value though, because, as you’ll see, it has a lot to offer. If you’re interested in investing in DNT, you can follow this step-by-step guide.
1. Anyone can create a new district (and get paid for it)
One of the biggest attractions of district0x is that it allows even non-technical users to make their ideas a reality. Anyone at all, even if they don’t hold DNT, can submit a district proposal to the district0x team – all you need to do is give your idea a name and describe how it will work.
The top proposals can be viewed on the district0x website. If you have DNT, this is also where you can vote for your favourite ideas.
Even if your idea doesn’t get selected for development, you will get rewarded just for submitting an acceptable idea. Each proposal you make will earn you 250 DNT (~$40), providing they’re original and meet the district proposal standards. If you’re lucky enough for your idea to gather the most votes from the community, you’ll earn a whopping 500,000 DNT – That’s about $80,000!
2. You can shape the growth of the internet
The main utility of DNT tokens is that they entitle you to vote on changes and additions to the district0x network. This includes voting for which new districts should be made by the development team. In the future, more power will be given to DNT holders; the district0x team has stated that governance of the entire district0x network will eventually be entirely in the hands of token holders.
DNT tokens can also be staked in districts, giving you voting power and privileges within that district. When you stake your DNT in a district, you will receive an amount of district-specific tokens which depends on how many have already been given out – early investors will receive more tokens. You can withdraw your stake or change it to a different district whenever you want.
By allowing users to control what happens to their favourite websites, district0x truly allows you to shape the growth of the internet.
3. district0x tokens can earn you passive income
By staking your DNT in the right districts, you can potentially earn passive income from the district0x network. For example, if an online auctioning district was created, similar to eBay, you could use your stake to vote on implementing a transaction fee for the platform. The token holders may agree on a flat 1% fee, which would allow them to generate revenue while also staying competitive. The profits from this fee would then be distributed among the district’s token holders.
eBay had a net income of approximately $2 billion in 2017; if a similar platform on the district0x network could gain even 1% of this figure, they would be looking at $20 million to distribute amongst their token holders. If 20 million DNT were staked in this district, that would be a passive income of $1 per token per year, which is pretty good considering that DNT currently cost $0.16 each – that’s a 600% return each year.
4. district0x tokens currently have a crazily low market cap
Even almost 6 months after release, the market cap for district0x is still only $100 million. This is insanely low when you compare it to the potential of the platform. Services to rival Uber, AirBnB, eBay, and others could all be hosted on district0x’s decentralized platform. By cutting out the middleman and giving control to the users of the site, these services will be able to offer much more competitive prices than centralized companies, who have large overhead costs and charge huge fees.
If district0x could obtain even a fraction of these massive markets, its market cap would be $1 billion at a minimum. There is no doubt that district0x has some incredible future growth potential.
5. The value of DNT will rise as the platform grows
The way the district0x platform is designed, there will be a forever increasing demand for DNT. As people start to see the potential of districts and the revenue they’re generating for token holders, they will flock to buy DNT. Investors will then lock these tokens in stakes so that they can receive some passive income; the circulating supply of DNT will effectively decrease as district0x becomes more popular.
As more DNT is staked in a district, you will receive less district tokens per DNT invested. Therefore, it will become less desirable for new investors to invest in more popular districts due to lower returns. These users will then be encouraged to create new districts. This could lead to a runaway effect; as the value of DNT rises, new districts will be created in pursuit of better returns, which will lead to more DNT being purchased and staked, hence further increasing the price of DNT.
Not only will your portfolio gain value due to passive income, but the price of the DNT tokens themselves will also increase steadily with time.
6. The district0x team is completely transparent
When investing in DNT, you can rest assured that the developers are doing exactly what they say they are. The names of everyone working on district0x are publically available, you can even view their salaries and fortnightly payslips on this spreadsheet.
On top of that, all of the milestones they hope to achieve with this project have already been published on their website – you know exactly what you’re investing in. You can observe the progress of the team throughout this project on their public GitHub page.
BONUS: district0x supports the trading of rare memes
One of the most important reasons to invest in district0x is the fact that they are creating memefactory.io, a website dedicated to trading rare memes on the Ethereum blockchain.
Users will be able to post memes on Meme Factory and turn them into cryptocurrency tokens. If people like your meme, they can create tokens of it by paying Ethereum. You need to act quickly though, the more tokens there are in circulation for a specific meme, the more it costs to mint another one. Invest wisely and you could literally make a living trading dank memes. This district alone is sure to send the price of DNT to the moon!
district0x is a hidden gem of the crypto world. This project has a huge amount of potential, not only for investors, but for internet users in general. For creating new and competitive internet services, DNT holders will be rewarded with both passive income and a boost to their portfolio value. If you’re new and not sure how you can invest in DNT, follow this guide for purchasing cryptocurrencies.