At Origin, we believe cryptoeconomic incentives are essential for powering the usage and growth of Web 3.0 applications and platforms. Everyone that contributes to the value of the Origin Platform should be able to own a stake in the network. Over time, this means that many ecosystem participants will all be aligned in promoting the growth and quality of the Origin network. Since April of this year, we have been rewarding everyday users for verifying their profiles, referring their friends, and making qualified purchasers through Origin Rewards.
Today, we’re excited to announce Origin Commissions. We’ve been quietly testing this feature for several months and we’re excited to finally share more details on how it works with our community. This initiative is targeted at incentivizing DApp developers, marketplace operators, and affiliates to promote seller listings and drive transactions on the platform.
While we believe that rent-seeking traditional marketplaces levy unfair transaction fees on sellers (often 20–30%), we also recognize that there are costs to creating websites and mobile apps that enable buyers and sellers to meet. With Origin Commissions, sellers now have the option to incentivize DApp creators to surface their blockchain listings to prospective buyers. Sellers can now deposit Origin Tokens (OGN) when they create listings to increase the odds of getting completed sales. DApp creators and future affiliates (e.g. influencers, bloggers, aggregators) earn these commissions when they generate sales for these sellers.
This creates incentives for DApp creators like Origin’s flagship app to promote seller listings that have OGN commissions over listings that do not have OGN. This is similar to Google promoting ads that have higher eCPMs (effective CPM, which is a function of quality score and CPC bids) over organic search results. Unlike traditional advertising though, these commissions are only paid out when verified sales have been completed.
Again, note that these OGN commissions are optional, so at the protocol level Origin remains free for everyone to use. Sellers can continue to use the Origin Platform without offering up OGN for commissions. However, we believe that motivated sellers will opt in to pay these commissions as we scale just like today’s traditional marketplace sellers (or the marketplaces that support them) spend hundreds of billions on advertising in the digital world to compete for consumer mindshare.
Today, Origin’s flagship app is the first commission earner. We will use the commissions we earn to power our additional marketplace services that our DApp provides, like our in-house customer service and arbitration services.
However, in the future, we envision many different DApps and other affiliates profiting from OGN commissions. We would even love to explore ways that OGN commissions from a single seller could be split and paid out to the various parts of the sales funnel. For example, a portion could be paid to the DApp that hosts the seller’s listing. Another portion can be paid to a blogger, influencer, or aggregator that helps promote the listing outside of the DApp, resulting in the final sale.
In this way, the multiple different types of actors in the Origin ecosystem can all be incentivized to drive transactions on the network. Over time and at scale, this can be a very powerful advantage for promoting growth over traditional marketplaces.
As we continue to build out the Origin network, we will continue to be heavily focused on interesting new use cases and incentive mechanisms for Origin Tokens. OGN already plays a critical role in the operation of the Origin network, and we envision it growing into a multi-use cryptocurrency that is pivotal in driving Internet commerce for millions of buyers and sellers in the long-term. Please stay tuned for additional announcements about the Origin Platform and OGN.
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