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docs/rewards/df-intro.md

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---
description: Learn the fundamentals of The Way of Data Farming 🧑‍🏫
---
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# Data Farming 101
<figure><img src="../.gitbook/assets/gif/morpheus.gif" alt=""><figcaption><p>Meet your sensei.</p></figcaption></figure>
## What is Data Farming?
Data Farming (DF) is Ocean Protocol's **incentive system that rewards participants for creating value in the Ocean ecosystem.**
Participants are able to **receive rewards passively, actively, or both** weekly by engaging in a variety of streams that helps the protocol grow. These activities include holding veOCEAN, curating datasets and building prediction models.
With this model, there is no liquidity risk through AMMs. We have also used battle-tested, hardened contracts that safeguard billions (veCRV).
You cant lose your OCEAN. It is merely locked.
### Passive and Active Reward streams
Every week OCEAN rewards are paid out to Data Farmers through two different reward streams. **Passive Rewards** and **Active Rewards**.
These two reward streams produce different variable APYs.
#### Splitting the Pie
Each Data Farming weekly round has a pool of OCEAN rewards, where 50% of the pool is paid out in the form of passive rewards & 50% in the form of active rewards that [can be viewed here](https://df.oceandao.org/rewards).
| Passive Rewards | Active Rewards |
| --------------- | -------------- |
| 50% | 50% |
<figure><img src="../.gitbook/assets/rewards/df-reward-streams.png" alt=""><figcaption><p>Rewards Page overview for each stream.</p></figcaption></figure>
### What are Passive Rewards?
Passive rewards are the OCEAN rewards paid to Data Farmers just for locking their OCEAN tokens.
veOCEAN holders can generate yield completely passively if they wish, though they are incentivized with larger real yield if they **actively participate** in farming yield from assets, or completing predictionc hallenges.
<figure><img src="../.gitbook/assets/gif/passive-income.gif" alt=""><figcaption></figcaption></figure>
[To start getting passive rewards, go here.](../user-guides/data-farming/how-to-veocean.md)
### What are Active Rewards?
Active Rewards are OCEAN rewards paid to contributors actively working to improve Ocean Protocol.
**Active Rewards** is then composed of two sub-streams:
1. 5,000 $OCEAN is paid out to ChallengeDF.
2. 70,000 $OCEAN remainder is paid out to VolumeDF.
| ChallengeDF | VolumeDF |
| --------------- | -------------- |
| 5,000 $OCEAN | 70,000 $OCEAN |
### What is VolumeDF
[VolumeDF](df-volumedf.md#allocating-veocean) rewards Data Farmers that allocate their veOCEAN tokens to Ocean datasets. It's called VolumeDF because the amount of rewards relies on assets that are actively generating Data Consume Volume.
You can visit the follow tutorial learn how to [access VolumeDF](../user-guides/data-farming/how-to-volumedf.md).
VolumeDF rewards are governed and defined by the [Reward Function](df-intro.md#reward-schedule).
#### Estimating APY
To a get a good sense for how much APY you'll make, we recommend you understand the details of [how veOCEAN works](df-veocean.md). This will give you a basis for the calculations and provide you with an outline for what to expect in terms of rewards over time.
You can find the [how to estimate APY](../user-guides/data-farming/how-to-estimate-apy.md) user guide, calculate a reward schedule, and compare your lock up period with others.
#### Publisher Rewards
<figure><img src="../.gitbook/assets/gif/just-publish.gif" alt=""><figcaption><p>Publishing lets you earn *more* OCEAN rewards</p></figcaption></figure>
Publishers are strongly incentivized to launch assets in the Ocean Ecosystem. When publishers curate and support their own assets, they [receive double the allocation power](df-volumedf.md#what-are-publisher-rewards).
You can learn how to curate datasets and access [Publisher Rewards](../user-guides/data-farming/how-to-volumedf.md#) here.
### What is ChallengeDF
ChallengeDF rewards Data Scientists that produce prediction models that consistently improve the prediction of the price of Ethereum. It's called ChallengeDF because weekly rewards are dispensed towards participants that are competing to improve the accuracy of how well we can predict price movements of Ethereum. Therefore, **ChallengeDF yields depend on participants accurately outcompeting each other.** Only the top 3 predictions on the leaderboard win.
You can visit the follow tutorial learn how to [access ChallengeDF](../user-guides/data-farming/how-to-challengedf.md).
### What's the difference between Data Farming and Yield Farming?
If you are familiar with 'liquidity mining' then you will find Data Farming similar, but instead, tuned for the curation of high quality assets in the Ocean ecosystem.
Unlike yield farming in DeFi, data farming has real intrinsic utility for Ocean Protocol stakeholders as Data Farmers determine which are the highest quality assets in the Ocean ecosystem to purchase, and as these assets sell, they are rewarded in OCEAN . It's this **curation of the "best" assets in the Ocean ecosystem** that shortens the search times for those looking to shop for assets in the Ocean ecosystem.
To deepen this incentive, Publishers are boosted further and **gain 2x the allocation power** when pointing to their own assets.
## Reward Schedule
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The table below shows the total amount of OCEAN rewards that will be distributed among Passive and Active rewards each week. The table cross-references DF Round Number, Start Date, Phase & Week, Sub-Phase & Week, and OCEAN Rewards/Week.
<figure><img src="../.gitbook/assets/rewards/reward_schedule.png" alt=""><figcaption><p><em>Ocean Reward Schedule for the next 20+ years</em></p></figcaption></figure>
<figure><img src="../.gitbook/assets/gif/cash-flow.gif" alt=""><figcaption></figcaption></figure>
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## [GET STARTED DATA FARMING HERE.](https://df.oceandao.org)
### Unsure how? Our [guides](../user-guides/README.md) will show you how to do the basics.