What is Basic Attention Token (BAT)?

Deep Dive

1. Purpose & Value Proposition

BAT aims to fix digital advertising’s broken incentives by rewarding users directly for their attention. Traditional ads often track users invasively, while publishers lose revenue to middlemen. Brave browser users who opt into privacy-respecting ads earn BAT, which they can use to tip creators or exchange for other assets (Brave). This creates a circular economy where advertisers pay users and publishers directly, cutting out unnecessary intermediaries and reducing fraud.

2. Technology & Architecture

Built as an ERC-20 token on Ethereum, BAT leverages blockchain’s transparency to track ad engagements and payments. The Brave browser acts as the primary interface, using zero-knowledge proofs to verify user attention without exposing identities. Ads are matched anonymously via machine learning, ensuring no personal data is stored or sold. Recent upgrades include self-custody BAT payouts via Solana, enhancing flexibility (Brave Community Call).

3. Tokenomics & Governance

BAT has a fixed supply of 1.5 billion tokens, with 1 billion sold in a 2017 ICO. The remaining 500 million are reserved for user growth and development. Rewards are distributed monthly to users (70% of ad revenue) and publishers (30%), governed by Brave’s open-source code. No centralized entity controls allocations, though Brave Software oversees ecosystem development.

Conclusion

BAT reimagines digital advertising by prioritizing user consent, privacy, and fair compensation through blockchain mechanics. Its success hinges on Brave’s adoption and the broader shift toward ethical ad models. How might BAT’s integration with emerging Web3 platforms further disrupt traditional media monetization?