Passive income refers to earnings derived from assets in which the owner is not actively involved. In the context of web3 and cryptocurrency, passive income can be generated through various means, such as staking tokens, yield farming, or investing in decentralized finance (DeFi) platforms. Unlike traditional income, which often requires continuous effort and labor, passive income allows individuals to generate wealth over time without ongoing work. This concept has gained popularity in the crypto space as individuals seek alternative ways to earn income beyond typical employment.