 So Nexo just had its first governance proposal and this is what you need to know before you start investing with Nexo. Welcome back to my channel. My name is Johannes Bottle and I read the news so you don't have to. Nexo is a lending institution in the digital finance industry which allows you to generate income from your Bitcoin or in general cryptocurrency holdings. By the way, this video is not sponsored by Nexo or any other company. I simply want to inform you about the changes they recently made within their company and their interest rates. If you hold any cryptocurrency, that is also available on Nexo. You can then put your cryptocurrency into a Nexo wallet and then stake, freeze the coins to generate income. The interest is paid out daily in either the coin you're staking or Nexo token. If you are a US citizen, you cannot earn Nexo tokens. Anybody else, including myself, can benefit from a 2% higher interest rate. For the past couple months, I've received Nexo tokens on a daily basis and this is what the token has done for me so far. Increase my interest rate on my Bitcoin holdings. Depending on your Nexo holdings, you will advance in different tiers, starting from base, silver, gold and platinum. The higher you are, the better interest rates you will receive. It allowed me to receive a dividend payment once per year from Nexo. So this used to be a one-time thing. Once a year, Nexo paid out a dividend to their Nexo holders. It's just an incentive to hold more Nexo tokens. Now, here's what changed June 8th. Nexo started a governance vote to see if people are interested in getting paid interest on their Nexo tokens instead of a once a year dividend payment. 90% of the people who voted wanted to see interest rates on their Nexo tokens, which automatically removes the once a year dividend payment. So Nexo said they're going to pay out one more dividend payment worth 20.5 million dollars. This sounds like a lot of money, but if you only hold a handful of Nexo tokens, this will be a very insignificant payday for you. Let's do the math. There are 325 million votes for yes and 38 million votes for no. So I'll just assume and say that there are no more Nexo tokens within a Nexo wallet because that's a requirement for you to receive a cut of the last dividend payment. This math could be completely wrong, but that's why this is an assumption. So we have roughly 360 million Nexo tokens and 20.5 million dollars to share. Each token will roughly get six cents, which in my case will be $84. Yeah, as you can imagine, that's not the reason why I'm excited about the news. I'm excited because my interest that I have earned from my Bitcoin holdings is now generating more interest. So basically the money that I invested created money and now the money makes more money. Compound interest, ladies and gentlemen, this is huge. In my opinion, if you believe that cryptocurrency will be around for a long time, I will now have the opportunity to receive 7, 9 or 12% on my Nexo tokens. If I don't do anything with my coins and I just leave them in there, I will receive 7% per year paid out daily. If I lock them up for three months, I will increase that interest rate to 9% and if I lock it up for an entire year, I will get 12%. One important side note, if you want to take out a loan with Nexo and you lock up those Nexo tokens, you will not be able to use them as collateral. One last note, I understand that 12% on a $3,000 investment doesn't excite anybody on YouTube. But when you look closer, the $3,000 that I generated, I got paid in interest. Besides the fact that I have to pay taxes on the interest, that's 100% passive income and now my passive income generates another $650 a year, completely passive. And I'm talking 650 if nothing changes in my account right now. The beautiful thing is though that I will continue to receive more Nexo tokens on a daily basis, which then increases my interest on the tokens that I got yesterday, tomorrow I'll already get interest on. I'm just really excited about the fact that my most aggressive, most volatile investment, Bitcoin, is now generating a high passive income for me while I'm not even trading it. This is just amazing because now I'm just holding my Bitcoin because I want to hold it for the long run anyways and now it's while I'm holding it, while I'm waiting for Bitcoin to increase in value over the next five years, it's generating income which I can use to reinvest to buy even more. Or I'll just leave it there and have a diversification and not only hold Bitcoin but also hold Nexo. Please, before you invest with Nexo or any other company, do your own research. It's your money and it's your responsibility. Actually, I got one more thing. If you like this video and the information presented, help me out with the YouTube algorithm. Just leave a comment and a like that helps me out a lot. Thank you so much for watching. I'll see you next time.