What makes a Web 3.0 app like ArDrive different?
It is going to be fun to see how all of these new Web 3.0 apps play out over the next decade. They really have the opportunity to get the makers and users of an application on the same page so they both benefit from it. How does this happen?
Well, let's look at ArDrive and specifically the ArDrive tokens, Usage Rewards, and Ownership to see how this is a game changer for web applications.
What are ArDrive tokens?
Tokens may be new to you.
Even if they are not, tokens can be confusing because different applications use them in different manners. At this point it will be most helpful to say what they are not, before diving into their purposes.
ArDrive tokens (ↁ) are not for paying to get your data uploaded onto ArDrive. The token ArDrive uses to upload data onto the network is AR – the Arweave token.
Then if ArDrive tokens are not used for purchasing storage what are they for?
ArDrive tokens have two main purposes to date:
- Rewards: Receive a share of the tips generated from all ArDrive transactions on the network.
- For Governance & Ownership: Ability to vote in the strategic direction of the application and community.
Usage rewards
An exciting and unique way to get ArDrive tokens is through simply using the application and telling others about it.
This is what is being referred to as the ownership economy within the Web 3.0 landscape. These new applications are a paradigm shift that are aligning the interests of developers and users so that both can take part in the growth of the application.
For example, when ArDrive launched its application it gave away 150,000 tokens over a two-month period to the first users of the application - these users became known as the community. The community provided valuable feedback about directions that ArDrive could go to offer a great permanent file management system.
ArDrive will be releasing more usage reward programs in the future. These reward those who use the application, and want to see ArDrive gain a significant foothold into the online file management space.
For all our current programs check out our rewards page.
Token Tips
Every time a file is uploaded to ArDrive a portion of the fee goes to the Arweave Network while another portion goes to the ArDrive community. Currently, 15% of your fee goes to the community.
This 15% tip is then randomly given to a token holder within the community holder. So if you hold 1% of the ArDrive tokens, over time, you will receive 1% of the tips that are distributed.
Some of the tokens have also been set aside for operations, marketing and development of ArDrive.
This is the community getting to take part in the upside of the application. Would Facebook do the same? 🙂
Governance and Ownership
There are currently ↁ7,172,550 in supply with a soft cap of ↁ10,000,000. All of this was laid out by the founders of ArDrive and the tokens have been distributed to contributors and users of the application. The creation of tokens itself is one of the key aspects to the overall governance of ArDrive, and can be voted upon by the community.
If you own ArDrive tokens you can now put yourself into position to be able to vote on community projects and the strategic direction of the app. This is done through a process called ‘staking’.
Staking is locking up your tokens into the community for a set period of time by the user – between 1 month and 3 years. Locking up means that you cannot sell your tokens during that time, but it does give you voting rights within the community.
The number of tokens you lock up is the number of votes you receive for less than one year of locking them up. If you lock them up for more time your votes will multiply.
You can view all of the ArDrive token ownership and votes on the community page.
What issues will be voted on?
Votes within ArDrive are divided into Major issues, which affect the entire community, and Minor issues, which are smaller in scope. Major votes happen on the first of the month. Major issues will include:
- Minting (or increasing) the number of ArDrive tokens in the system - any amount greater than ↁ10,000
- Changes to the community improvement plan
- Setting of Fees
Transparency
ArDrive is committed to transparency of how it is run going forward, and values the engagement between the builders and users of the application.
You can see a detailed outline of how ArDrive has been set up and the road map going forward by checking out our Community Improvement Proposal.
All of this is a great part about Web 3.0 – an increased alignment between the users and developers. All stakeholders will benefit.
Read more: What are ArDrive tokens?