April 27, 2022 – Toronto, Canada
After eight busy months of hard work, the H2O team announced the launch of H2O, an important milestone for the entire Web 3.0 data economy. H2O is a non-pegged and decentralized stable asset backed by OCEAN. H2O is now live on Ethereum mainnet.
Across all industries, the transformational power of data is impossible to ignore. McKinsey reports that data “can help unlock $3 trillion to $5 trillion in economic value.” The Economist writes that “The world’s most valuable resource is no longer oil but data.” With AI mature enough to unlock the value of data, data is becoming the most important asset on the planet.
In its infancy, the ‘data revolution’ was dominated by big tech. Fortunately, Web 3.0 is beginning to capture an important share of the innovation design space, reaping the benefits of the parabolic growth of the data economy with the many in mind, instead of concentrating value in the hands of the few.
While access to data in the Web 2.0 paradigm is gated by mega-corporations like Google, Amazon and Meta, Web 3.0 brings forward a new way for users and builders to level the playing field for this valuable asset.
No longer do individuals have to remain in the dark or act as passive users without rights to the value they create. It’s now 2022, and Ocean Protocol has greatly matured toward realizing its vision of democratizing access to data while preserving the privacy of the ones who create it and respecting the human values of the individuals who otherwise would be considered as mere farmable assets by the tech giants.
H2O was conceived to be the stable asset to catalyze trading and staking of data assets within the Ocean market and other Ocean-powered data marketplaces in the blossoming Web 3.0 data economy.
Using H2O reduces the volatility of data prices compared to using OCEAN directly. This will benefit various usersdata providers will have more predictable revenue, data consumers will have more predictable costs and data pool stakers will have a reduced risk of impermanent loss.
In turn, these benefits will accelerate adoption and activity within Ocean data markets.
With the launch of Ocean version four and then Ocean data farming (to incentivize data consumption volume), Ocean Protocol will become the Schelling point for the Web 3.0 data economy, along with a flywheel for ever more data.
This virtuous cycle will be accelerated by the H2O stable asset to benefit users further. Therefore, H2O has an important function and missiono become the de-facto medium of exchange in the Web 3.0 data economy.
Poseidon is H2O’s ‘ungovernance’ token, PSDN. PSDN holders will help guide the protocol in setting parameters while also accruing value through surplus auctions and native emissions.
Users who are looking for more details on the fundamentals of H2O can click here to read more.
To help bootstrap liquidity for H2O, Ocean holders can utilize SAFEsakin to vaults where users can deposit OCEAN as collateral to mint H2O.
Users can deposit your OCEAN tokens and mint H2O here.
Staking opportunities for PSDN will go live within 24-36 hours of the Poseidon token generation event (TGE), along with LP staking rewards for the following pools – ETH/PSDN, ETH/H2O, OCEAN/H2O and OCEAN/PSDN.
For more information on the PSDN airdrop details for the Ocean DAO governance participants and new order DAO stakers, click here.
A glimpse into the future
For its version two, H2O will transition to a multi-collateral model, where it will be backed by data assets in addition to OCEAN. This is a paradigm-busting idea. It’s a stable asset backed by a new asset classdata itself.
With data as a trillion-dollar asset class, it positions H2O extremely well for long-term stability and increases its appeal beyond core data-oriented users to the broader DeFi ecosystem.
In short, H2O exists to accelerate the shift toward a new data paradigmfrom closed to open, from volatile to stable.
Sebastian Gomez, business lead at H2O, said,
“We want users and builders, data providers and data scientists, to participate in the democratization of access to data. We believe this transition alone could spark a new renaissance in many industries. The full outcome of the paradigm shift is impossible to anticipate, but we know that it will be big.
“Data decentralization and democratization, and protecting its market participants from aggressive price volatility create a defining moment for societyand we’re honored to be in the eye of the storm, thankful for our community and team members that believe a new path is possible. We are aware and excited that these changes have the potential to change everything.”
H2O is the first non-pegged stable asset for the Web 3.0 data economy, with a managed float regime that serves as a medium of exchange and unit of account in decentralized data marketplaces.
To join the growing community of builders and users committed to decentralized data economies in DeFi, users can visit one of H2O’s community channels here.
Bruno Ahualli, managing partner of Kilonova Ventures