Looking for a Smarter Way to Earn Passive Income in Web3?

Blaise Hilary
4 min readNov 18, 2024

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Sancti

Imagine being rewarded daily for your contributions — no waiting, no delays, just earnings that grow with the value you bring. Sounds enticing.

In the decentralized ecosystem, validators, liquidity providers (LPs), and token holders play critical roles. So timely and fair rewards shouldn’t just be desirable — they’re essential. But what happens when delays in payouts undermine trust and motivation?

Alkimi Exchange, a decentralized advertising platform, has been working to address this challenge. The introduction of the AOP-2 Governance Proposal marks a pivotal moment, aiming to overhaul how rewards are distributed. By aligning payouts with real-time revenue, AOP-2 is set to redefine how stakeholders earn in digital advertising.

In this article, we’ll break down the complexities of AOP-2 into easy-to-understand concepts, explaining why it’s important, how it works, and what benefits it holds for the entire Alkimi community.

What’s Wrong with the Current System?

Understanding the shortcomings of Alkimi’s existing reward structure is crucial to appreciating the impact of AOP-2.

Imagine working hard and being told, “Your paycheck’s coming… in three months.” That’s what Alkimi’s validators and LPs deal with under the current reward structure.

Rewards are distributed quarterly, and calculated based on the network’s revenue from the previous three months. While consistent, this system has its flaws:

  • Delayed Payouts: Validators and LPs often wait months to receive rewards for their efforts.
  • Trust Deficit: The delay creates a disconnect between effort and compensation, potentially eroding stakeholder confidence.
  • Misalignment with Market Activity: Advertising revenue fluctuates seasonally and in response to market trends, but quarterly payouts fail to reflect these real-time dynamics.

These challenges create frustration for those who secure and support Alkimi’s network, making a more agile and responsive system a necessity.

How AOP-2 Fixes This

The AOP-2 Governance Proposal introduces a forward-thinking approach to reward distribution, designed to address these inefficiencies. Here’s how it works:

  1. Daily Revenue Snapshots: Rewards will now be calculated daily, providing near real-time alignment with the network’s performance.
  2. Monthly Buybacks: Instead of waiting three months, Alkimi will use the previous month’s revenue to buy back $ADS tokens on a rolling basis, ensuring timely payouts.

This model not only shortens the payout cycle but also creates a transparent feedback loop between contributions and compensation.

What’s In It for You?

Whether you’re a validator, LP, or $ADS token holder, AOP-2 offers tangible advantages:

  • Faster Earnings: With daily snapshots and monthly buybacks, you’ll see the immediate results of your contributions.
  • Trust and Transparency: Real-time calculations build confidence in the system by ensuring rewards match current efforts.
  • Adapting to Seasonal Trends: Fluctuations in advertising activity will now translate into timely, proportional rewards.
  • Ecosystem Growth: By fostering trust, AOP-2 encourages broader participation and strengthens community engagement.
  • Opportunities in AdFi: This model lays the foundation for innovative AdFi (Advertising Finance) products, designed to enhance liquidity and streamline reward distribution across the ecosystem.

This is a transformative shift toward a reward system that evolves alongside the ad market.

A Commitment to Fair Governance

Decentralized platforms thrive on fairness and inclusivity, and AOP-2 embodies these values. The governance model ensures that every voice counts:

  • Quorum Requirement: A minimum of 12.5 million $ADS tokens must participate for a vote to pass, guaranteeing meaningful community involvement.
  • Capped Voting Power: To prevent any single entity from dominating the process, voting influence is capped for major stakeholders.

This structure keeps governance balanced and representative, ensuring that the interests of all stakeholders are safeguarded.

Why Now? Timing Is Everything

The digital advertising landscape moves fast, with trends and spending patterns shifting daily. A quarterly payout model simply can’t keep pace with this level of dynamism.

By addressing delays and aligning rewards with real-time activity, AOP-2 positions Alkimi as a leader in adapting to the rapidly evolving ad market.

What’s more, the proposal paves the way for future innovations. Real-time rewards unlock the potential for new earning opportunities, such as liquidity-enhancing AdFi products, ensuring that every contributor has a stake in Alkimi’s growth.

How You Can Get Involved

Are you ready to help shape Alkimi’s future? Here’s how you can make an impact:

  1. Join the Discussion: Share your thoughts and insights on AOP-2 with the Alkimi community on Discord.
  2. Review the Proposal: Dive deeper into the specifics of AOP-2 in the Governance Forum to see how it benefits you.
  3. Vote on Snapshot: Participate in the governance process by casting your vote from November 18–19, 2024.

Your voice matters, and this is your opportunity to play a role in building a fairer, more agile network.

Conclusion: Building a More Equitable Ecosystem

The AOP-2 Governance Proposal is a bold step toward a rewards system that values fairness, transparency, and real-time alignment. By participating, you’re contributing to a decentralized platform that reflects the best of Web3: adaptability, inclusivity, and innovation.

Don’t miss your chance to be part of this transformation. Join the conversation on Discord, review the proposal, and make your vote count on Snapshot. Together, we’re building a smarter, more rewarding future.

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