Origins and Utility of the ADX Token

Explore the origins and utility of the ADX token, which serves to unify different elements of the AdEx platform and plays a central role in shaping the advertising landscape.

Veselina Yaneva

Apr 3, 2024 • 3 min read

Explore the origins and utility of the ADX token in our latest blog article

Digital advertising has seen numerous innovations and growth in recent years, with many new players entering the space. However, two persistent issues in the advertising industry remain constant: preserving user privacy and combating ad fraud. In this dynamic space, AdEx aims to offer an efficient, transparent, and privacy-preserving ad platform, striving to deliver tangible outcomes for advertisers while empowering users with control. An important component of the AdEx ecosystem is the ADX token - a digital asset designed to improve the synergy between different components of the ad network.

To truly appreciate the value proposition and economic mechanics of the ADX token, it is necessary to take a step back and briefly look back into creating the AdEx platform from which the ADX token originates.

Origins of the AdEx Platform

Established in 2017, the AdEx platform was created with a clear purpose: to transform the digital advertising sector. AdEx seeks to prioritize transparency, eliminate unnecessary fees, and implement fraud-proof mechanisms. The history of AdEx spans a considerable period, and it is marked by innovative concepts and achievements. Over time, the platform underwent several updates, incorporating fresh features, rebranding efforts, and introducing new DeFi products, such as AdEx Staking Portal and Ambire Wallet.

Originally started as an ad exchange, AdEx is shifting to a Demand-Side Platform (DSP), facilitating programmatic ads for Web3 advertisers. It allows Web3 to advertise to an untapped Web2 audience and target users interested in cryptocurrencies and Web3. Even though AdEx has been going through significant transitions and changes, the focus on transparency, privacy, and eliminating ad fraud with the help of blockchain technology has remained unchanged throughout the project's history.

The redesined AdEx platform — AdEx platform's new look

The AdEx ICO

The AdEx Initial Coin Offering (ICO) took place in June 2017 and was pivotal in raising funds to develop the AdEx platform. During the ICO, 80 million ADX tokens were issued for sale to participants. These tokens were created on the Ethereum blockchain as ERC-20 tokens. The distribution of ADX was designed to allocate tokens to various stakeholders, including investors, early adopters, team members, and advisors.

ADX token stats — Stats on the ADX token

Utility of ADX Token

Since its creation, the ADX token has experienced substantial growth in its utility. At present, the ADX token serves the following essential functions within the AdEx ecosystem:

Governance: ADX token holders who have staked their tokens can engage in governance decision-making processes regarding platform upgrades and changes.
Payment within the AdEx Platform: ADX tokens are utilized as a means of payment within the AdEx Platform. If advertisers pay for their ad campaigns with ADX tokens as opposed to the alternative stablecoins options, they can benefit from a reduced campaign fee of 4% - as opposed to the standard 7% fee.
Validator role and rewards: ADX tokens can be staked by holders, allowing them to secure a role as validators. Staking enhances network security and rewards validators with ADX tokens as rewards for verifying transactions.
Marketing Tool: ADX tokens function as a marketing tool by being offered as campaign rewards.
Staking: ADX token holders can stake their tokens through the AdEx Staking Portal or Ambire Wallet to earn generous rewards.

ADX Staking

ADX staking is a fundamental feature within the AdEx ecosystem that empowers token holders to participate in the platform's operations while earning rewards. By locking up their ADX tokens through the AdEx Staking Portal, users contribute to the security and reliability of the network and gain the opportunity to receive generous incentives. This staking mechanism, deeply rooted in the concept of Proof-of-Stake (PoS), also enhances the integrity of AdEx by ensuring that validators have a vested interest in maintaining the platform's success.

Staking ADX tokens is a win-win for investors and AdEx's decentralized infrastructure.

The Staking of ADX tokens also gives holders voting power in the governance of the AdEx project by allowing them to have a say in the direction of development, new features, and other important decisions.

Conclusion

The ADX token embodies the principles of decentralization, transparency, and user-centricity within the digital advertising realm. By enabling seamless transactions, incentivizing user engagement, and providing governance capabilities, ADX tokens are at the core of reshaping the advertising landscape. As blockchain technology continues to evolve, the ADX token's mechanics and value proposition offer a promising glimpse into the future of digital advertising, characterized by efficiency, privacy, and fairness.