In the future financial world, we may see a brand new collateral method: income stream-based collateral logic. This innovative model is being explored and practiced by platforms such as Huma.

The traditional financial system primarily relies on tangible assets as collateral, such as real estate or bank deposits. However, with the development of Web3 technology, a new financial paradigm is emerging. This model allows individuals to leverage their stable income to obtain funding, which may come from diverse sources, such as salaries from decentralized autonomous organizations (DAOs), dividends from non-fungible tokens (NFTs), or earnings from creations on the blockchain.

This innovative model essentially combines income discounting and credit pricing. It is not limited to the cryptocurrency sector but has the potential to fundamentally change our understanding of financial planning. If this model is successfully implemented, individuals may be able to leverage their on-chain income plans to achieve broader life goals, such as purchasing real estate, cars, or developing long-term life plans.

This income stream-based financial model represents a new possibility for achieving financial freedom in the Web3 world. It not only offers individuals more flexible financial options but may also drive the entire financial industry towards a more open and inclusive direction.

However, we should also recognize the risks and challenges that this new model may bring. For instance, issues such as how to ensure the stability and predictability of income streams, and how to establish an effective credit assessment system in a decentralized environment, need further exploration and resolution.

Overall, income stream-based collateral logic represents an important direction of financial innovation, with the potential to open the door to financial freedom for more people, while also bringing new vitality and possibilities to the entire financial system.