OMG Network
Crypto Overview
Project Overview
OMG Network (formerly OmiseGO) is a layer-2 scaling solution for Ethereum that aims to enable fast, low-cost transfers and swaps of digital assets. The protocol uses Plasma architecture to batch multiple transactions off the main Ethereum chain while maintaining security through periodic checkpoints.
Intended Utility
The OMG token is designed to serve multiple purposes within the ecosystem: It acts as a staking token for network validators, provides governance rights to holders, and serves as a means of paying transaction fees on the network. The primary goal is to facilitate high-throughput, low-cost digital asset transfers and exchanges.
Actual Usage & Development
Current usage of the OMG Network falls significantly short of its intended utility. While the technology is functional, adoption remains limited. The project has undergone multiple pivots and ownership changes, with BOBA Network acquiring it in 2021. Development activity has been inconsistent, with long periods of minimal updates.
Token Distribution & Governance
The initial token distribution included a public ICO in 2017, with approximately 65% of tokens sold to the public, 20% retained by the team, and 15% reserved for future network development. Vesting schedules were implemented for team allocations. Current token distribution shows significant dispersion among holders, though exact figures for major stakeholders are not readily available.
Revenue Model & Operations
The network generates revenue through transaction fees paid in OMG tokens. This model aligns with Islamic principles as it represents payment for actual services rather than interest-based income. The platform does not facilitate any explicitly haram activities like gambling or interest-bearing products.
Crypto Impact
To assign a comfort level investing in OMG Network from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to OMG Network.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.