OMG Network (OMG), formerly known as OmiseGo, functions as a Layer 2 Ethereum-specific scaling solution. Its primary focus is to create a value transfer layer on top of Ethereum using a network of smart contracts. The network aims to enhance scalability and transaction efficiency on the Ethereum blockchain.
What is OMG Network?
The OMG Network is a Layer 2 blockchain and scaling solution for Ethereum. Similar to the Mainnet, it can execute smart contracts and facilitate faster and more cost-effective movement of ERC-20 tokens, as well as ETH. The primary objective of OMG Network is to enhance Ethereum's appeal to institutional players by reducing costs and increasing transaction speeds.
The OMG Network team
As of 2023, the OMG Network has evolved into a globally distributed team comprising more than 50 individuals. As an SYNQA subsidiary, it operates under the leadership of CEO Vansa Chatikavanij. The network was established in 2017 by Ezra Don Harinsut and Jun Hasegawa, who secured $25 million in funding through an ICO.
Stephen McNamara, previously the Head of Blockchain at Huawei, now serves as the COO of OMG Network. Additionally, Kasima Tharnpipitchai, an accomplished engineer and consultant, holds the position of CTO.
How does the OMG Network work?
OMG Network's primary objective is to enhance Ethereum's scalability by leveraging the MoreViable Plasma technology. This innovative scaling solution utilizes a sidechain architecture to process transactions off-chain and in batches. Each batch of transactions is then consolidated into a single verifiable transaction on the Ethereum mainnet, enabling Ethereum to handle a greater volume of transactions efficiently.
OMG Network’s native token: OMG
OMG is the native token of the OMG Network, and it enjoys active trading across more than 200 centralized and decentralized trading platforms. The token's high liquidity makes it easily accessible and facilitates seamless trading opportunities for users.
OMG Tokenomics
OMG has a fixed supply of precisely 140,245,398 tokens. Currently, all of these tokens are in circulation, contributing to the high liquidity of OMG. In terms of token distribution, the top 10 OMG holders control approximately 45.98% of the total supply.
How to stake OMG?
The OMG Network does not allow holders to stake OMG tokens freely or as validators. However, the network has plans to transition to a Proof of Stake (PoS) consensus, enabling holders to profit from their staked tokens.
Cryptocurrency platforms like OKX offer products such as OKX Earn, which provides an estimated 1 percent APY on flexible terms for staking OMG tokens.
OMG use cases
OMG tokens serve a crucial role beyond being tradable assets. These roles include:
- Facilitating transactions on the Layer 2 Plasma and child chain.
- Acting as a means of payment within the network.
- Offering a potential staking solution, allowing holders to earn passive income once the network transitions to Proof of Stake (PoS).
OMG distribution
The distribution of OMG tokens is as follows:
- 65.1 percent of tokens are allocated to investors.
- 5 percent of the OMG tokens were airdropped to users holding up to 0.1 ETH.
- 29.9 percent is designated for the private pool, with 20 percent reserved for OMG Network's smart contract reserves and 9.9 percent allocated to the team.
The road ahead for OMG Network
One of the standout features of the OMG Network (OMG) is its impressive speed. Despite the ongoing surge in Ethereum's gas fees, even as it transitions to Proof of Stake (PoS), OMG Network and its native token OMG have significant potential for further expansion in the future as a trustworthy and cost-effective Layer 2 solution.
