Digital advertising has serious problems. Online, we find information, connect with people, share ideas. Advertisements influence which products we buy and which services we use. But advertising, whil
Digital advertising has serious problems. Online, we find information, connect with people, share ideas. Advertisements influence which products we buy and which services we use. But advertising, while powering the internet, also constrains it. Bad ads overwhelm users, shrinking the money publishers earn. Companies gather data from websites to build ad profiles on users. Most never learn this happens. This year, the Facebook-Cambridge Analytica scandal showed the damage. The firm pulled personal data from 87 million Facebook users for political targeting.
Varanida wants to repair the system. The startup brings users, advertisers, and publishers into a single ecosystem. Its name comes from Varanidae, the lizard family known for cleaning swamps and fields (Komodo dragons and crocodile monitors are members). The platform aims to clean the internet of "intrusive and poorly designed advertising, while introducing a decentralized, transparent, and ethical ad network," according to its white paper. The technology runs on the Ethereum blockchain and serves three groups. Users regain control of their data and privacy. Publishers discover new revenue channels. Advertisers measure every cent spent on campaigns.
The prototype launched to early adoption. More than 120,000 people downloaded it, a sign the blockchain community believes in the approach. Varanida opened an ICO to fund the next phase. The soft cap stands at $8 million, the hard cap below $40 million. The company uses a DAICO structure where token holders control the hard cap. If Varanida falls short of milestones, fundraising stops. The network will release one billion VAD (Verified Ad) tokens at launch next year.
The first ICO round wrapped up. Round two starts Friday, September 29 at 3 p.m. CEST and ends Friday, October 5 at midnight. Round three unfolds in three phases: 3A, 3B, and 3C. If round three misses its targets, the soft cap becomes the hard cap, which is still enough for the platform to operate. Token buyers get refunds if milestones fall short.
The funds break down this way: research and development (30%), Varanida ecosystem (25%), business development (20%), communication (10%), post-token-sale expenses (5%), legal and compliance (5%), and miscellaneous costs (5%).
According to the white paper, "Varanida users will earn VAD tokens each time they block an ad from a centralized network. This will be done through a multi-browser compatible extension that enables users to block ads running on centralized ad networks." The platform doesn't store personal data unless users opt in to sharing. Users who share information with trusted advertisers and publishers earn more VAD tokens, and the company won't sell this data to anyone else.
Publishers earn up to double what they get from ads through centralized networks. Those networks take around 60% of ad budgets as fees. The white paper states that "For each ad they display, publishers will earn VAD tokens based on the auction that takes place in Varanida's Real Time Bidding platform. Publishers can also be rewarded by users who like their content and want to 'tip' the team behind that content." Readers can also tip creators they support.
The company bought Secret Media, a media firm, to speed up product development for the coming stages.
