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The old saying claims that knowledge is power, and that bit of wisdom seems more relevant today than ever before. However, apart from being power, knowledge — or rather, data — is also wealth. Advertisers and other online companies and entities have been using user data to fuel their businesses and offer services for decades, accumulating wealth simply by collecting and using data of internet users.
Ocean Protocol’s goal is to make these benefits available to the users themselves, and to that extent — it announced the launch of veOCEAN.
What is veOCEAN?
Originally announced in mid-July of this year, veOCEAN came in response to the community feedback, and its purpose is to allow veOCEAN holders to lock their OCEAN tokens over a time period to earn rewards and voting power. As it is usually the case with this type of service, the longer the lock period is, the higher the reward and the voting power that the user receives in return.
The voting power allows users to participate in the project’s governance and vote on various proposals, while the rewards work similarly to the stock market’s dividends. The rewards are completely passive, and all that users need to do is lock up their tokens.
After several months of development, veOCEAN is finally ready for launch today, September 26th, 2022. According to the project’s Twitter announcement, the project will enable data farming, and it will be introduced today by Ocean’s own founder, Trent McConaghy. The launch will take place at 2 pm UTC, and data farming (DF) will resume immediately after.
📆Launch Event🌊 Are your alarm clocks ready
⏲️Only 1 day left ⏳
— Ocean Protocol (@oceanprotocol) September 25, 2022
How does it work?
Users can receive veOCEAN by locking OCEAN for as little as one week, or as long as 4 years, according to the project’s blog post that outlines the details of the new feature. The longer the tokens are locked up, the more veOCEAN will return as rewards. Meanwhile, the amount of OCEAN that users receive when the lock ends will always be equal to the amount that was locked, plus all the rewards that users receive as passive income in the meantime.
One thing to note is that veOCEAN cannot be unlocked before the pre-set time, and so if the user decides to lock their OCEAN for a year — they will have to remain locked for a year. The user will not be able to change the lock time or withdraw the tokens earlier.
On the plus side, passive rewards will be coming by default for the entire time the tokens remain locked away. More than that, if the users actively curate data by allocating veOCEAN towards data assets with high DCV (Data Consume Volume), then they stand to earn even more. For now, the project has seen over 481.78 million OCEAN allocated, indicating that there is massive interest in the new feature and the benefits that it carries — especially the APYs that will typically be between 5-10%, but may also go as high up as 125% or as low and 1.5%.
To learn more about Polkadot, visit our Investing in Ocean Protocol guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.