What is OMG Foundation?

OMG Foundation is a Layer-2 Ethereum scaling protocol that enables blockchain-based cross-platform payments. This protocol’s goal is to increase transaction throughput at a reduced cost while using the security guarantees of its underlying layer.

Built on the Ethereum blockchain, the project’s open payment network and decentralised exchange offer consumers a scalable and completely open alternative. Supported by Ethereum’s decentralised security mechanism and a network of observer nodes, the platform offers its users several benefits, such as minimal fees, quick transaction times, and cash-out possibilities.

OMG, the protocol’s native token, is the main way for users to engage with the network and pay transaction fees.

A brief history of OMG Foundation

Established by venture-backed payments company Omise, OMG Foundation, previously known as OMG Network, originally launched as OmiseGO in 2017 with an initial coin offering (ICO) that raised US$25 million. It was co-founded by Jun Hasegawa and Ezra Don Harinsut.

Following the sale, a total of 140.2 million OMG tokens were generated, with the team reporting that 91.3 million (65.1% of total supply) were distributed during the sale. A total of 28 million tokens (20% of total supply) were assigned to future platform development and deployment. Tokens worth 13.9 million (9.9% of total supply) were distributed to team members. In September 2017, OmiseGO executed an airdrop in an attempt to garner greater acceptance, with a total of 7 million tokens (5% of total supply) set aside.

OmiseGO rebranded into OMG Network on 1 June 2020, months before it was acquired by Hong Kong-based over-the-counter trading firm Genesis Block Ventures in December 2020.

However, in February 2021, data privacy developer Enya, a core contributor to the OMG Network’s creation, partnered with the OMG Network to create Layer-2 solutions. This collaboration resulted in the launch of Ethereum scaling solution Boba Network with the introduction of the governance token BOBA. In September 2021, OMG Network rebranded to OMG Foundation.

What is OMG used for?

OMG, the native token of the OMG Foundation, is used to pay for transaction fees and staking activities on the platform. In addition, given that OMG Foundation facilitates faster and cheaper ERC-20 token transactions, exchanges and other platforms can use OMG tokens to gain access to this service.

Aside from its original function within OMG Foundation, the OMG token also played a role in the airdrop of BOBA tokens in November 2021. Specifically, Boba Network ran a snapshot of OMG token holdings and used it as the basis for the 1:1 distribution of BOBA tokens to OMG holders during the airdrop.