Basic Attention

Basic Attention Token (BAT): The Digital Currency Revolutionizing Online Advertising

What is Basic Attention Token (BAT)?

Basic Attention Token (BAT) is a cryptocurrency that aims to transform the digital advertising industry by creating a new token-based marketplace for the exchange of advertising services between publishers, advertisers, and users. Launched in 2017 by Brendan Eich, co-founder of Mozilla and creator of JavaScript, BAT operates on the Ethereum blockchain as an ERC-20 token. The BAT ecosystem is centered around the Brave browser, which integrates with the token to provide a seamless advertising experience while prioritizing user privacy.

How Does Basic Attention Token (BAT) Work?

The BAT ecosystem functions through a three-way relationship between publishers, advertisers, and users:

Brave Browser Integration

BAT is tightly integrated with the Brave browser, which blocks traditional ads and trackers by default. Instead, Brave offers its own privacy-respecting ad platform that uses BAT as its currency. This system allows for advertising without compromising user privacy or consuming excessive system resources.

Attention-Based Rewards

The core concept behind BAT is valuing and rewarding user attention. When users opt in to view Brave Ads, they receive a share of the advertising revenue in BAT tokens. This creates a direct incentive for users to engage with content and advertisements they find valuable.

Publisher Compensation

Content creators and publishers can register to receive BAT contributions from users who appreciate their content. Additionally, they can earn from displaying Brave Ads on their platforms. This creates a more direct relationship between content creators and their audience.

Staking and Mining BAT

Basic Attention Token (BAT) operates differently from many other cryptocurrencies regarding staking and mining:

BAT Mining

BAT cannot be mined in the traditional sense. Unlike Bitcoin or Ethereum, there is no mining process for creating new BAT tokens. All BAT tokens were pre-mined during the initial creation phase, with a fixed supply of 1.5 billion tokens.

BAT Staking

Currently, BAT does not have a native staking mechanism within its protocol. However, some cryptocurrency exchanges and DeFi platforms may offer staking-like services for BAT holders, allowing them to earn passive income by lending or providing liquidity with their tokens. These services are third-party offerings and not built into the BAT protocol itself.

What is BAT Used For?

Basic Attention Token (BAT) has several core use cases within its ecosystem:

Advertiser Services

Advertisers purchase BAT to fund advertising campaigns on the Brave platform. These tokens are then distributed to users who view ads and to publishers who display them.

User Rewards

Users earn BAT by opting in to view privacy-respecting advertisements. They can then use these tokens to support their favorite content creators or exchange them for other cryptocurrencies or fiat money.

Creator Support

BAT enables direct support for content creators through the Brave Creators program. Users can set up automatic monthly contributions or make one-time tips to websites, YouTube channels, Twitter accounts, and other platforms they value.

Premium Services

The BAT ecosystem continues to expand, with plans to enable token use for premium content, e-commerce, and additional services within the Brave platform.

BAT Token Distribution and Launch

Basic Attention Token (BAT) was distributed through an Initial Coin Offering (ICO) that took place on May 31, 2017. The ICO was remarkably successful, raising 156,250 ETH (worth approximately $35 million at the time) in just 30 seconds - one of the fastest token sales in history.

Token Allocation

The total supply of BAT is fixed at 1.5 billion tokens, which were allocated as follows:

• 1 billion BAT (66.67%) was sold during the public ICO
• 200 million BAT (13.33%) was reserved for the development team and founders, subject to a vesting period
• 300 million BAT (20%) was reserved for the User Growth Pool (UGP), which funds user acquisition and various promotional activities

User Growth Pool (UGP)

The UGP has been instrumental in growing the BAT ecosystem. Brave has used these tokens to run various promotional campaigns, including grants to new Brave users and publishers who join the platform. This strategy has helped increase adoption of both the Brave browser and the BAT token.

Additional Information About BAT

Brave Rewards Program

The Brave Rewards program allows users to automatically contribute BAT to websites based on their browsing attention. This creates a passive support system for content creators while enabling users to give back to the sites they visit most frequently.

Verified Publishers

As of 2023, the BAT ecosystem includes over 1.5 million verified creators and publishers across websites, YouTube, Twitter, GitHub, and other platforms who have signed up to receive BAT contributions.

Privacy Features

Unlike traditional advertising, the BAT system keeps user data on the device. Brave's ad-matching happens locally, ensuring user privacy while still allowing relevant ad targeting.

Trading BAT with Cryptohopper

Anyone can trade Basic Attention Token (BAT) on any supported exchange using Cryptohopper's automated trading bot. This allows for efficient trading strategies without requiring constant monitoring of the markets, making it easier to capitalize on BAT's price movements while focusing on other activities.

Future Development

The BAT team continues to develop new features for the token ecosystem, including self-serve advertising platforms, enhanced creator tools, and expanding the utility of BAT across the web. With its focus on revolutionizing digital advertising while respecting user privacy, BAT remains a unique project in the cryptocurrency space with real-world utility and growing adoption.