VRC-20: Establishing the Financial System for User-Owned Data

At Vana, we build. We validate. We move forward.

Since launching mainnet just 12 weeks ago, Vana has redefined what’s possible for user-owned data:

✅ People want to own their data. 12 million+ data points onboarded.
✅ People want to buy user-owned data. Live data sales across multiple DataDAOs.

Now, it’s time to build the financial system around data. A data economy without a financial layer is incomplete. Markets don’t function on emissions alone—they require liquidity, price discovery, and standards that ensure stability.

As the foundation for this next phase, we are thrilled to introduce the VRC-20 Data Token Standard. VRC-20 transforms data-backed tokens into real financial assets, ensuring they are issuable, tradeable, and liquid. 

This isn’t just a protocol upgrade. VRC-20 is the backbone of DataFi : a framework that moves beyond speculation and into a structured, decentralized financial system for data itself.

Building a Market, Not Just a Reward System

In the first phase of Vana, rewards were distributed directly to DataDAOs in VANA emissions. This accelerated data onboarding but didn’t necessarily create a functional market for data tokens.

The next phase is different:

• Liquidity replaces emissions. Instead of direct rewards, incentives now flow into liquidity pools to ensure data tokens are tradeable, liquid, and integrated into the broader data economy.
• A universal data token standard (VRC-20). To receive liquidity support, DataDAOs must issue tokens that comply with VRC-20, ensuring fair, transparent, and secure trading.
• No more “Top 16” restrictions. Any DataDAO that meets the VRC-20 standard and integrates with the Vana ecosystem qualifies for liquidity support.

This transition marks the real beginning of DataFi—where data isn't just stored but financialized, traded, and actively used in real-world applications.

🔹 Read more in VRC-14: DataFi Aligned DLP Rewards

VRC-20: The Standard for Data-Backed Tokens
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For a data market to function, tokens need to be reliable, secure, and useful. That’s what VRC-20 establishes.

🔹 How It Works:
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• Data Asset Tokens (DATs) must follow a universal design, defined by VRC-20. This includes fixed supply policies, clear governance rules, and predictable liquidity mechanics.
• DATs must meet a baseline infrastructure requirement. Tokens are not just issued—they must be tied to real data access mechanisms, ensuring genuine utility.
• Liquidity pools are actively maintained. Instead of one-off emissions, rewards continuously reinforce token liquidity, ensuring that markets remain stable and tradeable.

By setting technical and economic standards, VRC-20 makes data tokens usable beyond speculation—they become integral assets in the data economy.

🔹 Read more in VRC-20: Data Token Standard

Data Validator Staking: Earning Through Infrastructure

Data liquidity is only valuable if data can be accessed. That’s why we’re introducing Data Validator Staking—a new way for the community to earn by securing data access uptime.

🔹 What’s Changing?
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• Validator Staking replaces DataDAO staking. Instead of staking in individual DataDAOs, participants now stake in Data Validators (Trusted Execution Environments), ensuring secure, permissioned access to data.
• Rewards are based on network security and usage. Stakers earn proportionally to their contribution to network uptime and data availability.
• DataDAOs must implement standardized infrastructure. To be eligible for data liquidity rewards, DataDAOs must support:
  
  • libSQL-based data schemas for uniform access.
  • Smart contract-enforced permissions to ensure data privacy.
  • Secure compute execution via Data Validators.

This shift ties earnings directly to infrastructure reliability—ensuring that stakers, DataDAOs, and data consumers all benefit from a functional, permissioned data market.

🔹 Read more in VRC-15: Data Access Architecture
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Fueling Growth: Grants, Liquidity, and Data Market Makers
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A real economy needs capital, infrastructure, and buyers. This next phase ensures all three.

• The Vana Grow Program is now a grants-based system, funding builders and data projects that expand the ecosystem. [link to new program page]
• Data Market Makers (DMMs) will ensure market liquidity for data tokens. Unlike speculative market makers, DMMs on Vana will convert web2 data demand into tokenized purchases, injecting real capital into the system.
• More buyers are entering the market. With standardized infrastructure and Data Validator Staking ensuring data access uptime, institutional and commercial buyers can now reliably acquire user-owned data.

This ecosystem shift ensures that data contributors, DataDAO operators, and token holders all have aligned incentives in a sustainable, decentralized market.

The Future of Data Markets Starts Now
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Data liquidity is no longer theoretical.
Data tokens are no longer experimental.
The new data economy isn’t coming. It’s here and it’s on Vana. 

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