H2O is a stable asset for decentralized data marketplaces.
H2O is a friendly fork of Reflexer’s stable asset, RAI.
Initially, the OCEAN token will back H2O, but other next-generation data tokens will back H2O later this year.
H2O will act as a medium of exchange and unit of account.
H2O removes the pricing variability in decentralized data marketplaces
To summarize, H2O will help solve multiple issues in decentralized data marketplaces, such as capital efficiency, stability in transactional operations, and efficient price discovery.
POSEIDON is H2O’s governance token. Poseidon has multiple essential functions for H2O:
It helps bootstrap the development of the ecosystem and incentivize the liquidity of the protocol.
It governs the initial parameters of the protocol.
Users who stake H2O to help protect the protocol will receive POSEIDON in exchange. If H2O protocol goes underwater, POSEIDON stakers are its first line of defense.
If this isn’t enough to maintain the solvency of the protocol, it will hold debt auctions that mint new POSEIDON and auction it in exchange for H2O to act as a second line of defense.
An essential characteristic of H2O is that it will go through a governance minimization process post-launch. It will be a multistage process that will limit the governance control of the core contracts. Simply put, the core team will have little to no control over H2O. At the end of this process, POSEIDON holders will decide how to remove any remaining governance controls in H2O or continue to manage components they deem too challenging to ungovern.
H2O’s launch marks a new era for the decentralized data marketplace. It is in a prominent position to affect the data tokenization market positively. Surely, H2O will help promote efficient capital usage and participation in decentralized data markets.
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