The world is undergoing a transition where data is becoming the key pillar of the digital economy. The way data is collected, valued and shared is changing rapidly. The centralized Web2 platform, while excellent in data aggregation, robs users of their data ownership and prevents users from sharing the value their data creates.
To disrupt this traditional model, Vana introduces DataDAO reward system which is community-driven and incentivizes high-quality data contributions and fair distribution of data value. The DataDAO rewards are part of a cyclical plan, where top 16 DataDAOs are rewarded every 21 days, based on community input and data quality.
DataDAOs bring together specific data from users onto the blockchain, allowing users to own, manage and monetize their data through AI and other applications. Users can support their favorite DataDAO by staking VANA tokens, thus ensuring that the best datasets and contributors continue to get recognized and rewarded.
The principles behind the DataDAO reward mechanism in the Vana ecosystem are: 1) Data liquidity unleashes value; 2) Community-led data pricing; and 3) Competition drives innovation. The end result is a survival-of-the-fittest market where the best datasets and contributors emerge. The DataDAO Reward Mechanism comprises of three main operations.
15% of the total VANA token supply is reserved for DataDAO rewards to be distributed over three years. Rewards for each DataDAO include 50% allocation to VANA stakers supporting the top 16 DataDAOs and 50% to the DataDAO treasury for operations and incentives. A multiplier mechanism is introduced for long-term stakers.
Top 16 DataDAOs are selected through a cyclical and community-driven process. Users can join the DataDAO ecosystem as data contributors, stakers or supporters for decentralized data networks, finding their own role in the process. To participate, users can explore Data Center, pledge VANA tokens for preferred DataDAO, monitor their staking, track performance and reinvest their earnings.
Towards a New Era of Data Ownership – Vana’s vision is to build an open, decentralized user-owned data economy using a combination of community governance, competition, and transparency, offering an alternative to the opaque, centralized data system of Web2 for data contributors, stakers and data buyers.
As the ecosystem grows, opportunities for innovation, collaboration, and mutual success will expand. For more details about Vana’s staking and reward mechanism, read Vana’s full documentation.
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