About Band Protocol (BAND)

The protocol runs on BandChain, an independent Delegated Proof-of-Stake (DPoS) blockchain built using the Cosmos SDK. Validators stake the network's native token, BAND, to secure the network and earn a portion of the fees generated by the protocol, Messari said. BandChain is custom-built for oracle computations, such as settlement, data sourcing and aggregation.

Band Protocol’s most obvious use case is in finance dApps, Decrypt said.

It works with data providers such as Binance and CoinGecko.

Other potential use cases include sports scores, weather and verifiable random number generation, needed in connection with things such as lotteries and NFT drops.

BAND is the native token of BandChain. It is the sole token on its network. Originally created as an ERC20 token, BAND powers the network. Use cases for the token, Messari said, include: collateral/stake for validators; transaction and access fees; and participation in BandChain governance. “The governance process allows the token holders to have decision-making power in shaping the direction of the network,” Messari said.

Band Protocol has joined the OpenAPI Initiative alongside tech giants such as Google and Microsoft to help define a standard for APIs.

How is the price of BAND determined?

BAND tokens were initially distributed in the form of two initial coin offerings (ICOs) and an initial exchange offering (IEO). The first ICO sale took place between August and October 2018. It sold 10 million BAND tokens at price of $0.3 per BAND, raising $3 million in the process, according to Messari. The second token sale took place in June 2019 and sold five million BAND tokens at a price of $0.4 per BAND, raising $2 million.

The IEO was held on Binance Launchpad, and the sale followed a lottery and airdrop format. A total of 12,368,200 BAND (12.37% of total token supply) was allocated to Binance Launchpad and was sold to Launchpad participants, Messari said.

BAND implements an inflationary model on tokens that is designed to gradually decrease their value, Decrypt said. “This is done to encourage users to take part in network staking to earn more tokens through staking rewards, with a goal of having 66% of all BAND tokens staked at any given time.”

The annual inflation rate changes based on that target percentage.

Why does BAND have value?

As dApp makers look to alternative blockchains for faster transactions and lower costs, said Decrypt, Band could be an essential tool to enable a broader dApp ecosystem going beyond Ethereum. Growth of DeFi and increased demand for the token, assuming inflation is controlled as intended, will drive value.

What are the main benefits of BAND?

• Band Protocol will help create a common standard enabling blockchain applications to easily leverage APIs and data, CoinDesk said.
• Band bridges the gap between blockchains and off-chain data sources, according to Decrypt.