Decentraland DAO can consider diversifying its assets with low-risk investments such as real estate, stocks, gold, and relatively stable cryptocurrencies to generate additional revenue. This post outlines the potential allocations and expected returns, providing a general idea of potential revenue generation.
Real estate investments have historically been considered low-risk investments with stable returns. By investing in properties in prime locations or regions with a strong economy such as USA, Dubai, Switzerland the DAO can expect an annual return up to 5% on these investments.
Gold has long been considered a safe-haven asset, providing a hedge against economic uncertainty and currency fluctuations. By investing in physical gold or gold-backed financial instruments, the DAO can expect a conservative annual return of approximately 4%.
Blue-chip companies such as Apple or Microsoft with a history of consistent dividend payouts can provide a low-risk avenue for generating revenue. The DAO can target an average annual dividend return up to 10% by carefully selecting a diversified portfolio of such stocks.
Cryptocurrencies have gained popularity as alternative investment options. While their volatility may be higher than traditional low-risk investments, some cryptocurrencies have demonstrated strong historical performance and widespread adoption such as Bitcoin and Ethereum. By selecting a diversified portfolio of established cryptocurrencies, the DAO can expect varying annual returns, with the possibility of significant growth in the long term.