What is Vana Network: The Layer 1 for Data Ownership

While heralded as the next great technological breakthrough, artificial intelligence (AI) may be facing more short-term roadblocks than anticipated.

Public data available for training is running short, and users with legally owned private data are not offered the right environment to benefit from data donation.

Unlocking this privately owned data through incentivization creates a “two birds one stone” solution, where users are rewarded for contributing to AI training, and large-language models (LLMs) are able to work with tons of previously inaccessible data.

The Value of Data

A potential solution may be blockchain-backed decentralized data ownership, and marketplaces. As the EVM-compatible Layer 1 for user-owned data, Vana enables an economy backed by private data.

AI training requires, and therefore values not just data, but unique and accurate data that can propel models and applications past competitors.

LLMs and AI-driven applications with the best data, end up becoming the best AI’s, which can be extremely lucrative for developers in the current market. This dynamic allows data to act as a moat for learning models and the teams behind them.

What are DataDAOs?

DataDAOs, also known as Data Liquidity Pools (DLPs) are decentralized marketplaces where users can contribute and tokenize sovereign data to be used in AI applications and settings. The tokenization, which is made possible by Vana Network, allows for a liquid marketplace for data where users or developers can buy and sell datasets.

DataDAOs allow contributors to monetize their data, instead of just blindly handing it over to an LLM that will monetize from it instead. Every time contributed data is used, the contributor earns tokens as a reward.

The system also allows for privacy control and empowering contributors with the power to choose how and when the data can be accessed.

Like traditional marketplaces, DataDAOs create a real economy around data as a good, which may help maintain something of a wealth gap as AI requires data contributions in order to continue improving itself.

Anna Kazlauskas, the founder of Vana Network attributes user-owned data as the superior information source to data company infobases. “With data from users, you get better data - like accessing the same user's Gmail + Twitter + Apple data (tied to their wallet) These cross-platform datasets are impossible to get in web2” said Kazlauskas in a post on X, highlighting the role that DataDAOs play in quality control.

Ecosystem Upgrades

On March 31 Vana launched its newest upgrade, which focuses on liquidity-driven data markets through the release of their new token standard, the VRC-20.

The VRC-20 Data Asset Token (DAT) offers a standardized token design, with real data backing the tokens and rewards to ensure continuous liquidity.

The upgrade also introduces important changes to both DataDAOs, and the network’s validators.

Through this new upgrade, DataDAOs no longer earn automatic VANA emissions, meaning that each DAO must issue tokens that comply with the VRC-20 standard in order to receive liquidity support. This move also promotes the growth of smaller DataDAOs, as it allows any compliant DataDAO to qualify and participate.

DataDAOs are also now required to implement a standardized infrastructure for data access, requiring specific data schemas, smart contract enforced permissions, and secure compute execution. This standardized approach will improve the ecosystems synchronicity, and also ensure that user data is protected.

As of March 31, data validators on Vana can now be staked to earn rewards. The data validator staking replaces the previous DataDAO staking model, and validators will earn rewards based on network security, usage, uptime, and data availability.

Alongside the technical and infrastructure improvements, Vana is also introducing builder incentives and market makers into its ecosystem. Vana’s Grow Program will now offer a grants-based system to fund builders and developers within the ecosystem, and Data Market Makers (DMMs) will ensure appropriate liquidity exists for DATs.

Vana Network

Vana Network is the decentralized Layer 1 blockchain that empowers the consumer-to-AI economy.

The network’s mainnet launched just 3 months ago, and has onboarded more than 12 million data points since its inception.

Vana consists of both the Data Liquidity Layer, where DataDAOs operate, and the Data Access Layer, which is similar to a dApp layer, that enables data transfers and accessibility across the network's dApps.

The liquidity layer is what allows for data to be represented as an asset. This is done by tokenizing data that has been validated by Vana’s Proof of Contribution (PoC) consensus mechanism.

All the tokenized data on the liquidity layer can then be utilized as DataDAO tokens which can be traded or used in data governance.

The access layer is where all this tokenized data can go to work. This layer hosts AI models and data-driven apps on Vana that rely on tokenized data in order to improve over time.

Vana Network operates in a trusted execution environment backed by its Satya Validators. Satya Validators are Vana-native data validators that guarantee privacy and security of user-owned data. The privacy of data on the network ensures its value proposition.

With true ownership and economic value attached to your own data, humans are able to retain an element of control, or even an edge, in the rapidly changing AI-driven economy.

Get Started Using Vana Network

VANA serves as the native token for the Vana Network, and powers its ecosystem through network security and staking, data validator staking, governance, and as the network’s native gas token.

The token, which currently trades at a $180 million market capitalization, can be staked by holders in order to enhance network security, improve the potential of data capital on the network, and earn emissions. All VANA tokens can be staked at stake.vana.com, and currently offer roughly 6% annual percentage rate (APR).

Users can also contribute to specific DataDAOs directly through Vana’s datahub. The datahub marks verified vs unverified DataDAOs, and each DAO, or DLP, features a short description on each dataset.

For users who would like to create their own DataDAO, Vana offers an 8-week accelerator program known as the “Vana Academy” Vana ecosystem grants, and will also be adding hackathons in the future.