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Ocean Protocol "Data Farming" - why it's time to pay attention!

The below article is based on the author's opinions of how Ocean Protocol data farming rewards may be structured. Currently, there is limited public information on the details of the Data Farming program. This blog is not financial advice and engaging in any crypto-related activities involves high risks. Do your own research. Data Whale is not liable for any of the below information, as this blog is for entertainment purposes only.

Credits: Crypto Whalerus

If you haven't heard of Ocean Protocol, it's probably time for you to start reading about the project. In the week of writing this blog, Ocean Protocol ranked around #200 of all cryptos on Coingecko - an opportunity you should definitely not miss.

Ocean Protocol's vision is big - I'm talking about disrupting a market arguably worth trillions of dollars: the data economy. It's a vision that [if achieved] could catapult $OCEAN to the Top 20 Crypto-Projects.

The vision can be achieved. The foundation of Ocean Protocol is strong. It's a serious project. You'll regret closing this page and not reading the blog to the very end!

  1. The founding team. Bruce Pon and Trent McConaghy are veterans in the Web3 and blockchain space. Trent McConaghy has released a blogpost recently, which proves that he could claim to be the inventor of NFTs. He made the very first NFT transaction on the Bitcoin network back in 2013. People like Trent McConaghy and Bruce Pon are rare, just like Vitalik Buterin. I call them "1000x Visionaries". Both founders understand token-based incentives like only few in the world - something that will play an important role for "Data Farming".

  2. The partnerships. Like Google, Twitter or Chainlink, Ocean Protocol is a Technology Pioneer at the World Economic Forum. They also maintain enterprise and government partnerships, including Daimler AG and European Union (Gaia-X), which are already exploring Ocean Protocol technology.

  3. The product. Ocean Protocol has a working product - the Ocean Web3 Data Marketplace, which allows data to be tokenized and traded via liquidity pools. This new asset class is called "Data Tokens", launched through "Initial Data Offerings" (IDOs) on the Marketplace. Think of ICOs, but for datasets. Now think of how valuable data actually is - wouldn't you want to own a share of a famous dataset that can change people's lives and make autonomous driving safer (check this out!)? Ocean Protocol's native currency, the $OCEAN token, can be considered the Ethereum of data, forming the underlying currency for the world's data exchange.

So why is Ocean Protocol still under the radar? A project with so many fundamentals should surely be listed among the top 100 projects, right? In Ocean Protocol's unofficial channels, there's a tightly knit community watching Ocean's every step, celebrating every milestone and sometimes blowing off their frustration.

There are two major events that you should know about, planned for Q1/2022.

  1. The Ocean Market v4 launch.

  2. The implementation of Ocean Protocol's "Data Farming" rewards initiative.

In our opinion, "Data Farming" will unleash an unwitnessed explosion of excitement that will drive immense value to Ocean Protocol and the Ocean Marketplace. Data Farming will be a lucrative rewards incentive, airdropping $OCEAN tokens to participating wallets starting in Q1/2022.

Want to participate? Here are further details.

Bruce Pon, Co-Founder at Ocean Protocol, explained his opinion in an interview with Data Whale:

"{...} Just like yield farming helped kickstart DeFi, Data Farming is going to help kickstart the [100 Trillion US$] data economy."

"{...} I think just like airdrops for the ENS [Ethereum Name Service] or for Uniswap turbocharged community ownership {...} and with that they got a lot more people interested and involved in the value proposition. I think Data Farming will do this for Ocean Protocol and will bring a lot of energy, a lot of value and a lot excitement."

Watch the full interview here!

Based on Trent McConaghy's comment in the Ocean Protocol Official Telegram, the Data Farming rewards program will be incredibly generous.

What Data Farming rewards can you expect?

Imagine several hundreds of thousands, or even millions of $OCEAN tokens airdropped weekly to eligible wallets! If your wallet participates on the Ocean Marketplace, then you are eligible to get a piece of the airdrop! With the help of $OCEAN tokens, you can either provide liquidity to a Data Token liquidity pool or swap your $OCEAN to Data Tokens. If you are a data owner, you can also use $OCEAN to create your own Data Token Liquidity Pool and publish your data.

Here, you can review the $OCEAN token release schedule. Currently, the $OCEAN circulating supply is at 434 Million Tokens, meaning only 30% of the total supply of 1.41 Billion is on exchanges. However, instead of dumping tokens on to the open market in the future, 51% of all $OCEAN tokens have been reserved for initiatives that generate value for the Ocean Protocol eco-system and create a Web3 sustainability loop. This includes the OceanDAO (180 Million $OCEAN Tokens), but also Data Farming (500 Million $OCEAN Tokens?!)

How to maximize Data Farming rewards?

Here's the trick. Data Farming will surely attract thousands of liquidity providers chasing the juicy $OCEAN airdrops. Demand for the $OCEAN token will increase and Data Token liquidity pools will be artificially inflated. In addition, there will be 100's of new Data Tokens created every week, probably backed by low-quality data that is either fake, stolen or mostly useless. Definitely not a long-term, sustainable business model, right? However, there is one metric that we haven't discussed yet: data consume volume. Based on an interview given by Trent McConaghy, we can expect that airdrop rewards will multiply based on how many times a dataset has been "used" or "downloaded".

[On the Marketplace, Data Consumers, like Data Scientists or AI-Researchers, can spend $OCEAN tokens to buy access to the datasets that have been tokenized. They can even submit algorithms that run over the data and spit out the results. This allows the data to remain on the publisher's servers, which preserves privacy and security, leading to more valuable data being tokenized. This technology runs all via the blockchain and has been developed by Ocean Protocol. You can read about Compute-2-Data here.]

With a simple tweak, which ties rewards to number of consumes, a healthy Marketplace can be incentivized and Data Farming pushes TRUE VALUE! Suddenly, data publishers don't have an incentive anymore to publish rubbish data - the airdrops will not be worth their time, as rewards decrease if nobody buys their low-quality dataset. In addition, liquidity providers (stakers) will choose the Data Token liquidity pools that hold the most potential to be sold or already have existing customers! Lastly, both publishers and stakers will now do their best to find consumers for their data and promote the Data Tokens. This leads to Ocean Marketplace being talked about across the world among data scientists. At the end, only valuable data will allow participants to yield maximum rewards from the airdrops.

Data Farming is a natural data curation system, fueled by generous token-based incentives and rewards. Genius.

How to get ready?

Load your MetaMask wallet with some $OCEAN. Choose your preferred network (Ethereum, Polygon, MOVR or BSC) and head on over the! Alternatively, you can also test on Rinkeby, as there are considerable risks on Ocean Market v3.

Learn how the Marketplace works. If you're a data owner, get your data organized and ready for tokenization. Find customers that are willing to buy your data once you launch it. And when data farming is announced, launch your Initial Data Offering - rewards are expected to be generous!

Data Farming will hit the crypto eco-system like a bomb. Airdropping hundreds of thousands or millions of dollars worth of tokens on a weekly basis will create a wildfire and FOMO. You won't want to miss this. If you can get the formula right and be ready from the beginning, then there is the possibility that the maximum airdrop rewards are split between only a few publishers and liquidity providers. It could mean that you could become an $OCEAN Whale within a few weeks. But remember one thing: the most important driver will be data consumers. So go out and find them!

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