Advertisement

AdEx Platform to Kickstart Community Governance with Token Issuance Vote

AdEx Platform to Kickstart Community Governance with Token Issuance Vote

Decentralized digital advertising platform AdEx has announced its intention to allow its community to start making important decisions about the platform’s future. The first governance vote, to be held this month, will determine the platform’s ADX token supply increase in 2021.

AdEx Community to Balance Staking Yield and Inflation Considerations

AdEx is a project focused on streamlining digital advertising through decentralization and micropayments. It’s set to give its community a voice in its future development, with the first governance vote to be conducted this month pertaining to the project’s token issuance in 2021.

Digital advertising is one of the most promising blockchain use cases but has long been mired in scalability issues. Publishers posting ads on their websites via decentralized protocols need to receive micropayments for each impression, which means that the underlying blockchain needs to quickly and cheaply process a lot of transactions simultaneously. AdEx solves the scalability problem by relying on a second-layer solution based on a specially designed payment channel architecture. Instead of sending each micropayment to the Ethereum blockchain, network participants use off-chain channels and only turn to Ethereum when opening ad campaigns and withdrawing earnings. The AdEx payment channel network is unique in that it makes use of unidirectional channels instead of bidirectional ones. 

Another difference from existing payment channels is that the message exchange does not take place between the payer and the payee. Instead, the correct functioning of the AdEx scaling solution depends on each channel’s two validators who need to stake the native ADX token in order to participate. AdEx validators are remunerated in newly issued ADX tokens.

Validation on AdEx is facilitated by staking pools to which ADX token-holders can deposit their tokens. In the case of misbehavior by the pool-governed validator, the pool’s stake will be slashed. However, AdEx has recently created a special staking pool called AdEx Loyalty Pool. Its stake is not slashable and there is no token lockup period. Most importantly, the staking rewards for this pool are not fixed, varying from 10-50 percent depending on ADX’s current price. 

Loyalty pool participants receive an amount of special ADX-LOYALTY tokens representing their share in the pool. In addition to being tradable, these tokens entitle their holders to participate in the governance of the whole AdEx platform through voting.

The first call that ADX-LOYALTY holders will have to make concerns ADX supply growth in 2021. They will need to achieve a balancing act between remunerating staking pool participants, including themselves, and avoiding excessive inflation. 

Decentralizing Digital Ads to Combat the Industry’s Endemic Problems

AdEx’s vision is to solve the fundamental problems facing the digital advertising industry, including fraud, lack of transparency from advertisers and the misuse of users’ private data. 

One of the key elements of AdEx’s solution is micropayments enabled by Ethereum blockchain integration and payment channels. This allows publishers to be paid for each impression of the ads they post, and thus prevents publishers from being at the mercy of their advertisers. At the same time, AdEx protects the latter through subsequent verification and proof of ad delivery.

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related TAGS:

You can share this post!

Advertisement