Open Ads Protocol Tokenomics
Introduction
The Open Ads Protocol (OAP) token is an integral part of the OAP ecosystem, designed to decentralize digital advertising and become the backbone for digital product distribution in the decentralized web. The OAP token ensures compatibility with a broad array of existing infrastructure like wallets and exchanges, while also facilitating interoperability with other Ethereum-based applications.
Key Users and Value Proposition
Advertisers: Advertisers can use OAP tokens to pay for ad spaces within the OAP ecosystem. This provides a transparent and efficient way to reach their target audience, with the added benefit of verifiable ad impressions and clicks.
Publishers: Publishers receive OAP tokens as payment for serving ads.
Validators: Validators, who bridge the gap between the Web3 and Web2 worlds, are required to stake OAP tokens to participate in the network. They are rewarded with OAP tokens for their services, which include recording ad impressions, managing ad creation and payments, and executing transactions on the network.
Developers: Developers can earn OAP tokens through the network's grant programs for creating innovative and useful applications that contribute to the growth and diversity of the ecosystem.
Rewards for Participating in the Ecosystem
Participants in the OAP ecosystem are rewarded with OAP tokens for their contributions. Advertisers get a transparent and efficient platform to reach their target audience, publishers receive a new revenue stream, and validators are rewarded for their services.
Developers, in particular, can earn OAP tokens through the network's grant programs for creating innovative applications that contribute to the growth and diversity of the ecosystem. For example, Nectar, a web3 ad platform, leverages the OAP to verify ad impressions using the validator network, ensuring transparency and trust among advertisers, game developers, and end users.
Incentives to Buy and Hold OAP
The OAP token is used as an incentive for validators in the OAP network. Validators are rewarded with OAP tokens for their services. This reward mechanism encourages validators to perform their roles effectively and consistently, thereby enhancing the overall health and success of the network.
Token Design
The OAP token will ensure compatibility with a broad array of existing infrastructure like wallets and exchanges, while also facilitating interoperability with other Ethereum-based applications. It serves as the medium of exchange within the OAP ecosystem, an incentive for network participation, and a bridge to wider crypto ecosystem accessibility.
Token Allocation Schedule
The OAP token will be launched with a maximum supply of 5,000,000,000 with the following allocation:
Ecosystem Growth (51%): These tokens are used to incentivize participation in the network. Grants for developers, Advertiser and Publisher onboarding, etc.
Network Operations (15.5%): Tokens allocated to validator operators for continued participation in the decentralization of the network.
OAP Foundation and Team (12.5%): These tokens are allocated to the team members and advisors who contribute to the development of the OAP ecosystem. Subject to a vesting schedule to ensure long-term alignment of interests.
Strategic Funding Rounds (7.5% and 5.5%): Tokens sold in private for initial funding and development.
Public Sale (5%): Tokens sold to the public provide funding for the development and operation of the OAP ecosystem.
Early Supporters (3%): These tokens are provided to the OAP’s earliest supporters that provided critical product feedback and development support.
Economic Model
The economic model of the OAP token is designed to incentivize participation and align the interests of all stakeholders. Advertisers use OAP tokens to pay for ad spaces, publishers receive OAP tokens as payment for serving ads, and validators are rewarded with OAP tokens for their services. Developers can earn OAP tokens through the network's grant programs for creating innovative applications that contribute to the growth and diversity of the ecosystem.
The use of OAP tokens for staking by validators also adds a deflationary pressure to the token's economics. Validators are required to stake a certain amount of OAP tokens to participate in the network. This staking mechanism serves a dual purpose: it deters malicious activities by imposing a financial cost, and it aligns the incentives of the node operators with the health and success of the network.
Conclusion
In conclusion, the OAP token is a fundamental part of the Open Ads Protocol, facilitating key functions, incentivizing participation, and driving the vision of a transparent and efficient advertising network. Its value lies in its ability to enable and enrich the interactions within the OAP ecosystem, making it a compelling investment for those interested in the future of decentralized digital advertising.
Last updated
