How did Ocean Protocol's Predictoor achieve $400M+ monthly staking volume in just 6 months? Find out in today’s #TokenEngineeringReads ft. its design & impact, plus Web3 Sustainability Loop updates.
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1/ In 2020, Trent McConaghy developed a framework called the "Web3 Sustainability Loop". Popular in the TE community, this loop tackles crypto’s hardest challenge: achieving sustainable value capture in non-extractive, open-source, and permissionless ecosystems.
2/ From the Web3 Sustainability Loop, the "Data Value-Creation Loop" is fleshed out as a new sub-system. It addresses the question, "How do people make money in the open data economy?"
3/ How? By following the loop's steps: 1) Create value from data, 2) Make money from it, and 3) Reinvest to fuel growth.
4/ Predictoor's Data Value-Creation Loop ensures data products generate revenue. Data fuels building models, making predictions, and creating revenues. Profits reinvest in data, sustaining the loop. $OCEAN tokens facilitate value capture.
5/ The speed and value of iterating through the Data Value-Creation Loop are crucial. Slow loops run out of funds; fast loops quickly deliver value & grow. Ocean Protocol analyzed verticals based on speed & revenue, focusing on DeFi for its fast iteration & large $ opportunity.
6/ The Data Value-Creation Loop maps the Data Supply Chain: raw data is refined into models and predictions, leading to profit. Typically, the last mile makes the most profit. Predictions are the most valuable data.
7/ In late 2023, Ocean launched Predictoor, its first end-user product, providing price predictions for the top 10 crypto tokens. It aggregates and sells predictions to traders, rewarding accuracy in price predictions.
8/ Ocean targets traders and data scientists using Python, and started with a comparably simple simple product suite. Today, Predictoor combines a Python code interface, a web app, AI/ML prediction bots, a simulator, CLI, and analytics.
9/ Ocean overcame the initial empty network issue by kick-starting transactions with own AI/ML prediction bots. Today, Predictoor Data Farming boosts predictoor earnings based on accuracy and stake. This led to >$400M in monthly staking volume in the early months!
10/ Predictoor succeeded in tackling crypto's toughest challenges by gaining user traction, creating a new value loop, and ensuring protocol success through end-user engagement. More resources are provided in the edition!
This newsletter is made possible thanks to funding from Carbon DeFi by Bancor, Tokenomia.pro, and Optimism Foundation's RetroPGF! Subscribe to #TokenEngineeringReads for more: https://buff.ly/3QFmrdR
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