Decentralized advertising platform AdEx Network has recently performed a major token upgrade of their native token ADX. With this, AdEx adds security mining, which allows ADX stakers to earn an extra incentive that amounts to more than 100% APY. The primary purpose of ADX is staking - read on to learn more about this.
AdEx Network is a new-generation advertising solution aiming to address and correct some of the most prominent inefficiencies of the online ad: user privacy misuse, ad fraud, lack of transparency in reporting, etc.
The AdEx platform allows advertisers and publishers to buy and sell ad inventory without any middlemen, and introduces full transparency of the advertising supply chain by using blockchain technology.
Earlier this year the platform got out of private beta and opened to everyone; today, it has surpassed 4,000 registered publishers and advertisers and has served more than 800 million impressions. Every ad impression on the platform translates to a micropayment through a Layer 2 payment channel on Ethereum, making AdEx the largest payment channel network on Ethereum.
The main use of AdEx Network’s native token ADX is staking. Explained in simple terms, staking is the process of locking a certain amount of ADX tokens on the AdEx staking portal in order to increase the trustworthiness of the validators in the platform. Stakers are compensated for their participation through generous staking rewards.
Staking incentivizes validator uptime; subsequently, this ensures that all advertising campaigns on the platform run smoothly and payments happen in real time.
Every campaign on the platform requires appointing validators as validators are responsible for processing the micropayments. The more tokens are staked, the stronger the reliability guarantees of the AdEx validator network. Effectively, staking allows for AdEx users to have governance over validators and enables better transparency, reliability and decentralization of the entire process.
In August, the AdEx Network team performed a major token upgrade and enhanced the rewards that stakers receive in line with the latest DeFi developments. The upgrade decreased gas costs and added a flash lending functionality to the token, making it the first ERC20 with built-in flash loans.
Furthermore, the upgrade enabled ADX yield farming: 7 million new ADX tokens were minted for staking rewards, and this allows stakers to earn an annual percentage yield (APY) upwards of 100%. Currently, there are close to 15 million tokens already staked and earning passive income for their holders. The AdEx staking portal allows for easy re-staking, thus letting users maximize their earnings.
In addition to this, stakers also earn rewards in DAI - these come from the AdEx validator fees.
Overall, AdEx Network is a great example of linking the DeFi ecosystem to a real-life use case of blockchain technology, i.e. the AdEx advertising platform. While most DeFi projects focus on yield farming alone, the AdEx team has managed to create an ecosystem that combines the best of two worlds.
If you want to learn more about AdEx staking, check out this article on their blog.