What You Should Know:
- Vana has introduced the VRC-20 standard to promote trust and transparency in data-backed digital assets.
- This new standard enforces criteria such as fixed supply and governance, ensuring tokens are linked to genuine data utility.
- Since launching its mainnet last December, Vana has successfully integrated over 12 million data points, indicating a strong interest in user-owned data.
Cryptocurrency enthusiasts may be familiar with the ERC-20 standard, which sets guidelines ensuring token compatibility on the Ethereum blockchain. Now, a parallel standard for data-backed tokens, called VRC-20, has been established.
Vana, an EVM-compatible Layer 1 blockchain, assists users in monetizing their personal data by aggregating it into DataDAOs for AI model training. The new standard was introduced earlier this week to increase trust and transparency in the data-backed digital asset landscape.
“For data markets to operate effectively, tokens must be reliable, secure, and functional. The VRC-20 standard accomplishes this by facilitating fair and transparent data token trading,” Vana declared on X.
The VRC-20 standard’s framework includes essential criteria such as fixed supply, governance, and liquidity while ensuring genuine access to real data by tying tokens to meaningful data utility. Furthermore, it encourages ongoing liquidity through rewards that foster market stability.
“This is not mere speculation; it represents the genuine financialization of data,” Vana emphasized.
Vana launched its mainnet in December, introducing VANA as its native cryptocurrency. Since then, the network has brought on board over 12 million data points via various DataDAOs, signifying a growing demand for user-controlled data.
DataDAOs or data liquidity pools function as decentralized marketplaces that convert data into transferable digital tokens. In these pools, data is supplied, tokenized, and prepared for applications like AI model training.
The recent announcement disclosed the replacement of VANA emissions in DataDAO incentives with a new requirement for DAOs to issue VRC-20-compliant tokens to access liquidity support.
Additionally, the protocol unveiled data validator staking, allowing VANA holders to stake their tokens in data validators rather than in individual DataDAOs.
“Rewards are determined by network security and usage. Stakers will profit based on their contribution to network availability and data accessibility. No more idle staking—earnings are tied to genuine network utility and reliability,” Vana concluded.
As of the latest update, the VANA token is trading at $5.58, marking the lowest price in over two weeks and continuing a downward trend from a recent high of $8.78 on Binance.
