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The digital age has given us many services that are free of charge but cost us dearly. Big platforms like Google, Facebook and other social media giants offer their services for free but monetize user data to make money. This has led to growing concerns about privacy and user data exploitation. But Web3 is changing how users get rewarded for their participation and data. Platforms like AdEx show how tokenization and decentralized models can pay users fairly. 
<h3 id="strong-the-cost-of-free-strong">The Cost of Free</h3> 
In the current digital world, many services are free. Search engines, social media platforms, and various apps provide huge value to users without asking for a direct payment. But this “free” access is often <a href="https://www.forbes.com/sites/kalevleetaru/2018/12/15/what-does-it-mean-for-social-media-platforms-to-sell-our-data/" target="_blank" rel="nofollow noopener">subsidized by collecting and monetizing user data.</a> Companies track user behavior, preferences, and interactions to create detailed profiles sold to advertisers and data brokers. 
In the search engine space, Google is the most popular. It tracks user searches, location data, browsing history, and more. This information is used to create targeted ads and generates big revenue for the company. Google’s business model is built around user data, and personalized ads are a big chunk of their revenue. 
Facebook and Instagram collect tons of data from their users, posts, likes, shares and personal info. This data is used to serve super targeted ads and make social media companies some of the biggest players in the digital ad market. Many apps and online services, from fitness trackers to e-commerce sites, collect user data to refine their offerings and sell it to third parties. The data collection often exceeds what users expect or consent to, and that’s a big problem. 
<h3 id="strong-web3-tokenizing-user-participation-strong">Web3: Tokenizing User Participation</h3> 
Web3 is changing the way we interact with digital services. Using blockchain and decentralized systems, Web3 wants to create a fairer, more transparent internet where users are rewarded for their participation and data. 
One of the key innovations of Web3 is tokenization. Tokens represent different forms of value and can be used to pay users for their participation, data and attention. This is opposite to traditional models where user data is exploited without direct payment. 
Tokenization means users get paid for their data or participation, a tangible reward for their contribution. This can be in the form of cryptocurrencies or platform-specific tokens. With decentralized models, users have more control over their data. Technologies like Zero-Knowledge (ZK) proofs allow data to be used for targeted ads without being exposed or stored centrally, keeping user privacy intact. 
<h3 id="strong-adex-a-web3-advertising-case-study-strong">AdEx: A Web3 Advertising Case Study</h3> 
<a href="https://www.adex.network/" target="_blank" rel="nofollow noopener">AdEx</a> is a decentralized advertising platform that shows how Web3 can redistribute rewards and empower users. Launched in 2017 as a decentralized ad network, AdEx has evolved into a Demand-Side Platform (DSP) for Web3 advertisers. The platform’s transformation is a great example for users and advertisers. 
AdEx introduces a model where users are paid for their time and attention. When users choose to view ads, they get ADX tokens, so it’s a direct reward. This engages users with ads and turns ads from nuisance into opportunities. 
AdEx’s Zero-Knowledge targeting engine allows for targeting without compromising user privacy. All data is stored and processed on the user’s device, so it’s compliant with privacy laws and gives users control over their data. AdEx also has a staking portal where users can stake their ADX tokens and earn rewards. This is an additional income stream for users and promotes a sense of community and participation in the platform’s ecosystem. 
Technical improvements in AdEx include lower campaign fees, making it more cost-effective for advertisers. Campaign fees are 7% and 4% when using ADX tokens. AdEx ensures efficiency, which can lead to better ad spends and higher rewards for users. Advertisers who deposit more than $10,000 get a 30% bonus, so their advertising budget increases, potentially resulting in more rewards for users. 
AdEx supports multiple payment methods, including cryptocurrencies like USDT, USDC, ADX and DAI. This makes it easier for advertisers to participate and for users to receive rewards in their preferred currency. By supporting the Polygon network, AdEx has faster transactions and lower fees, so better user experience. 
<h3 id="strong-the-web3-tokenization-impact-strong">The Web3 Tokenization Impact</h3> 
AdEx and other platforms’ pioneering model has broader implications for the digital economy. By moving towards a tokenized, user-centric approach, Web3 can solve several inefficiencies and problems of the current system. 
More openness and responsibility as well as less ad fraud plaguing conventional advertising networks can come from decentralized systems. Blockchain guarantees that every contact and transaction is noted on an unchangeable ledger, therefore providing clear and open information for users and marketers. 
Web3 can turn the Internet from a site of exploitation into one of empowerment by equitably compensating consumers for their data and involvement. Users of the digital economy start to participate actively rather than only as consumers. 
<h3 id="strong-in-closing-strong">In Closing</h3> 
The way digital services operate and consumers are handled changes significantly from Web 2 to Web 3. Platforms like AdEx can help in enabling a more transparent, fair internet in which people are rewarded for their efforts. 
Web3 can distribute incentives, safeguard privacy, empower users, and establish the new benchmark for the digital economy by leveraging tokenization and distributed technologies, transforming the digital economy.

Empowering Users in the Data Economy: How Web3 Redistributes Rewards

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