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Data Farming 101
What is Data Farming?
Data Farming (DF) is Ocean Protocol's incentive system for curating high quality assets on the Ocean Market. Participants vote on the Ocean Market assets that they believe are high quality and likely to sell. If they are right, then these Data Farmers get a portion of the Ocean Market sales of the assets they voted on!
(If you are familiar with 'liquidity mining', then you will find that Data Farming is similar but tuned instead for the curation of high quality assets on the Ocean Market.)
How is Data Farming different from Yield Farming?
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 on the Ocean Market to purchase, then the Data Farmers earn active OCEAN rewards when these assets sell. It's this curation of the "best" assets on the Ocean Market that shortens the search times for those looking to shop on the Ocean Market. We also put in place an incentive system for Publishers of assets to gain 2x the rewards in Data Farming, thus driving forward the addition of great assets on the OM.
Measuring Data Farming's Success
Data Consume Volume (DCV) is a metric for the total $ amount spent on purchases of Ocean Market assets, transaction fees, and more. As Ocean Market assets are purchased (i.e. consumed), then the more OCEAN rewards are distributed to Data Farmers.
I know this is a lot of info, but please don't leave!
Passive and Active Rewards
Every week OCEAN rewards are paid out to Data Farmers in two different ways: passive rewards and active rewards. The two reward functions produce different variable APYs.
What are Passive Rewards?
Passive rewards are the OCEAN rewards paid to Data Farmers just for locking their OCEAN tokens.
What are Active Rewards?
Active rewards are OCEAN rewards paid to Data Farmers that allocate their veOCEAN tokens to Ocean Market assets. They're called Active rewards because the amount of rewards relies on the active participation of the Data Farmer to select and allocate veOCEAN to these assets. Active rewards yield depends on the sales of allocated assets. No sales = no rewards, so choose your favorites wisely & then allocate. Always DYOR.
Active Rewards are governed and defined by the Reward Function.
Divvying Up the Goods
Each Data Farming weekly round has a pool of OCEAN rewards, and 50% of the pool is paid out in the form of passive rewards & 50% in the form of active rewards.
| Passive Rewards | Active Rewards |
|---|---|
| 50% | 50% |
Publishing makes you even more OCEAN rewards
Publisher Rewards - 2x Stake
Data Farming strongly incentivizes publishing assets on the Ocean Market.
All the veOCEAN a publisher has allocated to an asset they’ve published (i.e. staked) is treated as 2x the stake for rewards calculation.
- As a staker, due to their staked veOCEAN on their own assets (1x).
- As a publisher, for having veOCEAN staked on their own asset(1x).
The final reward is then calculated and bundled together to be distributed.
You can read more about the implementation in this blog post.
Where do I get my Data Farming rewards?
All OCEAN rewards for Data Farming are claimable on the Rewards page of the Data Farming webapp on Ethereum mainnet.
When can I get my Data Farming rewards?
OCEAN rewards are distributed on Thursday every week. Data Farmers may claim rewards every week, or wait many weeks to accumulate before claiming. (It’s all on-chain.)
For your first time claiming rewards, you must wait at least one entire week from Thursday and up to two weeks, to be able to claim rewards.
Data Farming Main
DF Main started on Mar 16, 2023 in DF Round 29 after graduating from the alpha and beta testing phases. DF29 has 150K OCEAN rewards available (a 2x increase from DF28). As DF Main progresses, rewards will increase to 300K (another 2x), then 600K (another 2x), then beyond 1.1M OCEAN/week (near 2x) then decaying over time.
As of DF29 (Mar 16, 2023), wash consuming is not profitable. So, organically-generated Data Consume Volume is the main driver of active DF rewards.
Example APYs are 5–20% between Passive & Active rewards.
Full implementation of DF Main will be over many months, after which DF will be decentralized.
DF Main lasts for decades.
Reward Schedule
The table below cross-references DF Round Number, Start Date, Phase & Week, Sub-Phase & Week, and OCEAN Rewards/Week.
Ocean Reward Schedule for the next 20+ years
Ranked Rewards
In DF23 Ranked Rewards were introduced and smooth the reward distribution by using a logarithmic function.
Since rewards are distributed across the Top 100 assets, all participants (Publishers & Curators) are now incentivized to support a broader range of assets rather than optimizing on a single asset.
At the top-end, this helps increase quality and diversification of inventory.
At the bottom-end, this eliminates some potential free-rider issues and smooths out the reward distribution.
You can read more about the implementation in this blog post and find the full study in these slides.