Bottoming out, why did r/datadao, an old coin on the AI ​​track, come back to life?

I have been in the currency circle for a long time, and I am no longer surprised to see this trend of a project.

We have seen too many projects go from instant success to prosperity and decline, with the community and the currency price falling into complete silence.

Time in the currency circle is too precious. Every day is a new opportunity. We know that there is no need to stick to one project.

But there are always some projects that attract a group of solid fans because of their unique temperament. They still build with enthusiasm after the speculators disperse, trying to bring the project back into people's sight.

r/datadao is such a project.

The glory and fall of the first data DAO

r/datadao, as the first data DAO, was originally intended to combat the unreasonable ownership and disposal rights of user data by traditional Web2 platforms.

Reddit sells the content posted by users on the platform to AI companies for US$60 million every year to train models, but not a cent of this money goes to the users’ pockets.

Under such huge injustice, r/datadao was born on April 4th. It calls on users to export their own data on the Reddit platform and upload it to the community database, and vote together to rent the data to AI companies to share profits. Users can also earn the governance token $RDAT based on their data contributions.

It was later revealed that the driving force behind r/datadao was the crypto AI startup Vana, which raised US$20 million from VCs such as Paradigm and Polychain. Many big names in the crypto circle came to support the project. The overwhelming momentum from the project side caused $RDAT to surge 50 times from the opening price of $0.01 to a maximum of $0.62 in just a few days.

The amazing wealth-creating effect allowed the first batch of 20 million $RDAT to be released for circulation on April 8. Officials made it clear that there will be more batches, but did not reveal what the total amount of $RDAT will be. In the end, the problem really lies in this.

On April 11, r/datadao finally announced the second phase of its plan, giving all $RDAT holders a heavy blow.

The project stated in the document: "Similar to Ethereum, $RDAT does not have a fixed supply. When new users contribute their Reddit data to the community-owned database, new $RDAT will be issued."

Can They forgot one thing. Although Ethereum does not have a fixed supply, it has created long-term deflation potential for ETH through EIP-1559 and PoS upgrades. And what about their $RDAT? It was just a useless governance token, and now it has become an "air coin" with unlimited inflation.

The project team seems to know that this is inappropriate and has introduced a staking and recommendation reward mechanism. Participants in the first phase can earn more $RDAT by staking and recommending others to participate, so that their share will not be diluted as the total number of tokens increases. But holding $RDAT can only get more $RDAT. Isn’t this a naked Ponzi scheme?

Retail investors who had their brains changed one after another chose to "cut and rule forever", and $RDAT also began its never-ending decline.

When the decline suddenly stopped

I thought the story would end there. I occasionally see r/datadao official tweets announcing some progress in the staking mechanism, which is also a source of fun.

Three months passed just like this, and I suddenly found that $RDAT could no longer fall, and even experienced frequent "dead cat rebounds".

After carefully reading the official tweet, I discovered that r/datadao quietly did a big thing: on July 7, r/datadao officially disabled token minting and gave up contract ownership.

That is to say, $RDAT will not conduct any additional issuance from now on. The 20 million coins in the first phase, plus the additional 10 million coins issued in the second phase, constitute the total supply of $RDAT of 30 million coins. The reason for $RDAT’s endless decline is gone.

In addition, there is another resolution also approved by the community - to cooperate with ORA to deploy a decentralized AI model and complete an IMO (Initial Model Offering) for this purpose.

First of all, let’s talk about this decentralized AI model, which is much more reliable than other simple and crude money-making projects in the currency circle that use GPT shells. A former Google engineer developed this model for r/datadao. Prior to this, he wrote a detailed "Summary Analysis Report on the Use of Reddit Data Sets for AI Model Development" to explore how to use r/datadao's data sets to develop AI models that can generate Reddit's typical style content, and pointed out that Deploying such a model has the potential for business applications in areas such as social media management, content creation, and user engagement strategies.

As for IMO, it is not much different from the traditional ICO, which is to raise funds for the development of open source AI models. IMO represents ownership of AI models by issuing ERC-20 tokens (more specifically ERC-7641 Intrinsic RevShare Token). Anyone who purchases these tokens becomes one of the owners of that AI model, and token holders can share in the revenue generated when the AI ​​model is used on-chain.

According to the Token Economics document, the total supply of the new token $RDML is 1 billion, 50% of which will be used for this IMO public sale, with plans to raise $5 million at a unit price of $0.01. The $ETH funds raised, along with the reserved 150 million $RDML, will be deposited into the r/datadao vault. In other words, through this IMO, the r/datadao treasury will suddenly have an additional $6.5 million in funds. These funds can be used for a wide variety of purposes, including repurchasing $RDAT. And what is the current full circulation market value of $RDAT? Just around $1.5 million.

r/datadao Assuming it decides to use the entire $6.5 million to buy back $RDAT, it theoretically has the ability to buy back all $RDAT in circulation at 4.33x the current market price of $0.05. (This is an extreme assumption. It is impossible for r/datadao to use all the funds, and $RDAT is not fully circulated in the market.)

Originally an air coin that was not even as good as Meme, it became a dazzling operation under this dazzling operation A value coin with sufficient funds in the community treasury and a stable source of income.

To create human happiness, it’s all up to us

I’m curious, how come a project that was originally submitted suddenly came back to life? After learning more about it, I have a deeper understanding of the two lyrics of "The Internationale": "There has never been a savior, nor a fairy emperor. To create human happiness, it all depends on ourselves."

Original r/datadao The community has not been sitting still, and on June 22, a three-person team was elected to serve as community leaders responsible for formulating proposals and leading the DAO. Among the three selected, Agung Triyono (agungtriyonode) claimed to be a listing partner of multiple CEXs and was able to contact CEXs to handle the listing process. Parslowed (lowparslow) claims close ties to ORA, while SuperKingCheese is the community OG pushing for this election. These three people are all talented people, and their proposals really brought r/datadao back to life.

Originally r/datadao is a huge innovation of Web3 and sucks Web2, with huge room for imagination. The original token plummet was just because the project team failed to find a good solution to deal with inflation. The plan proposed by the new three-person team not only completely eliminated token inflation, but also found new value growth points for old coins by issuing new coins. .

But did you think it was over here? No, there is another hidden benefit to r/datadao that has been overlooked. Yes, we have yet to unravel the behemoth that is Vana.

One point to emphasize here is that in the future, the Vana mainnet will launch a DLP (data liquidity pool) slot similar to the Bittensor subnet. As the first DLP officially supported, r/datadao will definitely be able to obtain the emission reward of Vana’s native token $DAT. . These rewards will also flow into the r/datadao vault, becoming another new source of funds to repurchase $RDAT.

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