VDA Token Utility
The Verida Storage Credit Token (VDA) creates a data economy enabling secure interactions between accounts to facilitate secure data storage, trusted sharing and fast querying.
Users can utilize credits to store and exchange data across the network. Storage node operators can stake VDA to provide storage capacity to the network, secure private data and get rewarded.
VDA powers the first private data DePIN for web3.
Decentralized physical infrastructure networks (DePIN) are helping build a more crowdsourced or community led creation and operation of public infrastructure. In the same vein, the Verida Network is designed to provide a decentralized private data storage layer for the new self-sovereign data economy.
Read more about how the Verida Network optimizes for speed, authentication and encryption here.
The VDA token serves to coordinate resources in this new data-based economy. The network rewards infrastructure operators who supply storage capacity, and end users who bring their personal data onto the network.
These end user rewards can then be used to pay for storage with network storage providers. Applications built on the network may also choose to sponsor the storage needs of their users.
As users connect more data, there’s more aggregate value for both the user and network. The value of user data increases as it becomes denser.
What is the utility of VDA?
The Verida Token (VDA) creates a data economy enabling secure interactions between accounts to facilitate secure data storage, trusted sharing, fast querying and trusted messaging.
Applications: Builders create applications that leverage the Verida Network. These applications can earn tokens through end users interacting with the app, through network growth rewards for onboarding users, community incentive grants, and by self-hosting a node on the network.
End Users: Users interact with Verida by interacting with applications and creating DIDs. If users share or create data, they can earn VDA tokens through interactions with the Verida Network applications.
Storage Node Operators: The storage provider market works similarly to a normal storage network. Node operators must bond (i.e. through single-sided staking) VDA tokens to make their nodes discoverable. It is intended that the storage market self regulates itself through competitive forces as providers set their own storage prices.
VDA is purchased and staked by both developers and node providers to participate in the network. Due to the unique incentives on each side of the market, token usage differs between the parties.
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