Omni Network is a new blockchain that has plans to integrate all blockchain rollups on the Ethereum Ecosystem.
It recently made headlines after it started its airdrop distribution period where there were 3 Million $OMNI distributed to eligible users.
What is $OMNI?
$OMNI is an ERC20 token that was launched through an airdrop that happened this month for eligible users who participated retroactively.
The token will be used to facilitate all aspects of the Omni Network itself, including as a utility token and a governance token.
$OMNI will be used to pay for transaction fees for users and developers that utilize the Omni Network.
$OMNI will serve as a universal gas fee token, which can be used to pay for all gas fee transactions on layer two blockchains that are connected to it.
This is done through the Oil mechanism where the gas token of all connected blockchains can be converted into $OMNI and back so that users that are utilizing multiple layer two blockchains can utilize them more efficiently without the need to exchange tokens.
$OMNI will also be used as a governance token to govern the ecosystem of Omni Network, not only the network itself but the overall plans that will be done to improve the Omni Ecosystem.
The token is currently available to be bought and sold after the airdrop distribution period has started.
It is currently priced at $4.78 per token, which is considerably a high value, considering that the token is still new.
However, this is still not its highest price as the token’s highest price was at $9 after the launch started which went down, due to more people collecting the airdrop and exchanging it to fiat currencies.
What Does the Blockchain Do?
The Omni Network itself will be used to integrate all rollup blockchains, which are Ethereum Layer Two Blockchains.
Currently, there are many Ethereum Layer Two Blockchains in the Ethereum Ecosystem, which sometimes makes it confusing for users who want to utilize all aspects of the Ethereum Ecosystem.
This is why Omni Network was created so that all users of those layer two blockchains can be integrated through one platform.
In the Ethereum Ecosystem, all layer two blockchains are used in the consensus layer, where the main function is to check the validity of the smart contract requested by the users of the Ethereum Blockchain.
The Omni Network wants to integrate this layer into one platform so that all of those layer two blockchains can work together in case of congestion or any sort of problems.
By integrating those layer two blockchains, Ethereum will also receive all the confirmed transactions in a more coordinated way, so that there are no potential double-spendings due to all of the layer two blockchains working together.
In terms of the layer two blockchain ecosystems, developers can also execute functions and utilities from multiple blockchains for one decentralized application.
For example, a developer can utilize the data availability mechanisms of Arbitrum while at the same time utilizing the scalability aspect of Optimism to then help their application execute transactions on the Ethereum Blockchain, all in one platform.
The Omni Network takes the meaning of Omni Layer to another level, giving developers and users a way to use the Ethereum Ecosystem more effectively.
Token Economics
Coming back to $OMNI, the current circulating supply of the token stands at around 10 Million $OMNI, which includes the 3 Million allocated for the retroactive airdrop.
$OMNI Token Economics / Source: Omni’s Whitepaper
The initial supply of $OMNI accounted for 10.4% of the total supply since the maximum supply stands at 100 Million $OMNI.
Looking at the allocations, it can be seen that the team behind Omni Network and its early investors will have an allocation of 23.4% which is not a problem.
However, looking at its core contributors allocation, it can be seen that the overall “insiders” allocation stands at more than 50%.
This can be a problem as the public controls less than 50% of the overall supply, prompting potential speculations of market manipulation.
But, looking at its vesting period, it can be seen that all of them cannot sell their holdings at once, since there is a lock-up period of 3 to 4 years.
Conclusion
It will be interesting to see how $OMNI will develop into the predicted bull market of 2025, because if most layer two blockchains agree to use the Omni Network, then the utility of $OMNI will become important in the Ethereum Ecosystem.
As the utility becomes more important, then there is a potential for the price to go up, as more investors will likely get to know it and hold it, either for their investment purposes or their decentralized use-case purposes.
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