Decentralized Web3 Protocol Golden Raises $40 Million Backed by A16z – Golden, a decentralized data hub firm, has announced a new $40 million Series B funding round. Many significant names in the VC business, including Opensea Ventures and leaders associated with Solana, Protocol Labs, Figma, and others, participated in the round, which was led by a16z crypto.
The funds will be used to continue developing the company’s business model, which is centered around supplying consumers with credible data, which aims to pair Web3 with the establishment of a strong and verified information hub. According to Jude Gomila, CEO and founder of Golden, this is because current data mining models have shown to be unreliable.
Gomila believes that incentivizing users to participate to the program is the only way to build this global data repository. Golden offers a protocol that compensates users for data verification and submission while also apparently penalizing the entrance of fraudulent data into the system.
The protocol also includes a mechanism for increasing compensation for users who contribute the most frequently utilized and requested data. In this way, the spreading of relevant data is incentivized. The protocol’s operation includes public NFTs (non-fungible tokens) containing information about any concept in the network (for example, Coinbase, Open Source Software, or Pancakeswap).
Users can contribute by entering data into these structures and will be paid for their efforts, which must be validated. The protocol’s business model is built on the sale of tokens to third parties who want to use the certified data for various reasons.
Given the volatility of the cryptocurrency market, these institutions would be able to acquire and burn said tokens for stable credits that will allow them to safely preserve this right to data access. While the protocol is still in test mode, it has apparently attracted the interest of 35,000 people who are already using the app and participating in data submission and validation, and it is slated to deploy in mainnet in Q3 2023.