In the history of finance, the definition of credit has always been in the hands of a few.
In agricultural societies, credit came from personal relationships and reputation; in the industrial age, credit was tied to collateral such as land and property; in the era of digital finance, credit relies on bank statements and centralized institutions. Blockchain is hoped to make credit fairer, but the DeFi model still revolves around 'asset collateral': you need to have BTC or ETH to borrow money.

This logic creates a paradox. The more assets one has, the more funds they can borrow, continually accumulating like a snowball; while those who truly need funds—salaried workers, freelancers, and small businesses—are excluded from the credit system due to a lack of collateral. In other words, finance has always served the 'asset owners' while neglecting the 'creators'.

🌍 The overlooked majority

According to World Bank data, over 1.7 billion adults globally do not have a bank account. Even in developed countries, individuals relying on wages and business income are often marginalized by traditional finance. Freelancers' invoices may take weeks or even months to be paid, small businesses' receivables can drain cash flow, and salaried workers often find themselves in the predicament of 'eating dirt at the end of the month'.

These groups are not without credit. They have stable cash flows every month, but this value cannot be recognized by traditional finance. In the banking system, having no collateral equates to having no credit; in the DeFi world, having no crypto assets also means having no credit. Thus, billions of income earners are forced to stand outside the financial door.

🔑 Huma's breakthrough

@Huma Finance 🟣 brings a whole new idea: transforming future income into on-chain credit assets.

Through the world's first PayFi network, future cash flows such as wages, invoices, and remittances can be put on-chain, valued using a time value model (TVM), and liquidity can be automatically released by smart contracts. Users do not need property or crypto assets to obtain up to 90% of their future income in advance.

The significance of this model lies in its shift from defining credit by 'what you have' to defining it by 'how much you can earn'. Salaried workers' payslips, freelancers' invoices, and small businesses' receivables can all become verifiable on-chain credit assets. For those previously neglected by finance, this is the first time they truly possess 'recognized credit'.

📈 Why is it important?

First, this is the rebalancing of finance. It allows credit to move from asset holders back to workers, truly reflecting the value of inclusive finance.

Second, this is the lowering of barriers. The high thresholds of traditional finance and DeFi have blocked most people; Huma makes income the new ticket for entry, enabling more people to directly access the financial network.

Again, this is a global opportunity. Wages, invoices, and remittances are universal forms across regions and cultures. Huma's model does not rely on any country's credit system, naturally adapting to cross-border and digital economies.

Finally, this is an upgrade of the trust mechanism. Traditional finance often suffers from information asymmetry, while Huma's contract mechanism is transparent and verifiable, allowing users to clearly know how their income is priced and how liquidity is released.

🔮 Insights for the future

If DeFi 1.0 is the financialization of assets, then Huma Finance is driving the financialization of income. In the future, there may emerge:

  • The on-chain securitization of wages and invoices becomes a new category of RWA assets;

  • A decentralized income credit scoring system replaces the traditional centralized credit assessment;

  • Global freelancers and small businesses gain instant financing, no longer constrained by payment terms;

  • For the first time, ordinary people gain equal financial treatment through 'income'.

This is a profound shift in financial logic and may be the starting point for true financial inclusivity in Web3.

✅ Conclusion

The original intention of finance should be to serve value creation. However, under the dominance of asset logic, it has long favored a minority.
Huma Finance's PayFi network is pulling this bias back on track. It defines credit through future income, allowing salaried workers, freelancers, and small businesses to obtain their own liquidity.

This is a technological innovation, but also a revolutionary concept. It tells us that credit should not be determined by assets, but by value creation.

📣 Huma Finance—empowering the present with future income.
#HumaFinance $HUMA