What Is Omni Network?

Omni is an interoperability protocol on Ethereum that enables communications between all Ethereum rollups, underpinned by the cryptoeconomic security of restaked ETH. This will offer the opportunity for collaboration and interaction between different blockchain ecosystems while enabling developers to create applications that operate across multiple chains.

Key Takeaways

• The Omni Network is an interoperability protocol that connects all Ethereum rollups via low-latency communications.

• It has successfully raised $18 million in a previous fundraising round that included Pantera, Spartan Group, and Two Sigma. 

• In recognition of users who contributed to the development of the Omni Network and as a way to mark the OMNI token launch, 3 million tokens were distributed in the OMNI genesis airdrop.

Introduction to the Omni Network

Omni Network is an Ethereum-native interoperability protocol that is designed to connect all Ethereum rollups, or scaling products, through low latency communications. It aims to offer a secure, efficient, and globally compatible architecture that will present Ethereum as a single, unified operating system. This will enable developers to build applications that can interact with each other and allow users to easily switch between various applications. As a Proof-of-Stake network, Omni will be secured with a dual staking mechanism involving staked OMNI and restaked ETH.

In preparation for the Omni Network mainnet launch, multiple testnet rounds were held to ensure that the final platform can be as smooth sailing as possible. From June to July 2023, the Omni Origins Testnet processed 1.5 million transactions from 150,000 users. After that, the Omni Overdrive Testnet ran from August to October 2023, attracting 400,000 users and 30 ecosystem projects this time with a total 6 million transactions. Currently, Omni is running the Omni Omega Testnet which began in March. At the time of writing, there are a total of 37 operators and 75,600 restakers delegating to Omni operators.

Fundraising by Omni Network

In a previous fundraising round, Omni Network successfully raised $18 million from six investors including Pantera, Spartan Group, and Two Sigma. Recently, liquid restaking protocol Ether.Fi committed $600 million worth of ETH in a delegation deal which will be restaked on EigenLayer and enhance Omni’s security against breaches and asset depegs. Omni will whitelist Ether.Fi’s liquid token, eETH, and select Ether.Fi’s node operators to be part of its Actively Validated Services.

How Omni Network Works

The Omni Network is also the first Actively Validated Service (AVS) to secure $1 billion in staked ETH commitments from liquid restaking protocols including Ether.Fi, Renzo, Rio, Swell, and more. An Actively Validated Service on EigenLayer is a protocol that leverages Ethereum’s shared security and validation mechanisms provided by EigenLayer. Using an AVS allows developers to make use of Ethereum’s security framework without having to replicate it. Borrowing this security helps to protect against attacks. 

On top of that, AVSs provide a more efficient use of blockchain resources by restaking in the EigenLayer ecosystem. Validators can participate in securing protocols without having to separate resources for each. Omni will introduce blockchain security through restaked ETH with the process involving validators and delegators working in sync to verify protocol messages, slashing events, and maintain the integrity of the validator set. 

Unlike other blockchain networks, Omni Network is working to create an ecosystem that connects all blockchain networks, regardless of their underlying technology. This approach will make use of a foundational layer that acts as a universal connector to facilitate interactions between them. A permissionless network of Omni validator nodes – that are secured through staked OMNI and restaked ETH – will use CometBFT consensus to validate messages and transactions. The resulting connectivity could be a stepping stone for true cross-chain composability. 

Benefits of Omni Network

The Omni Network offers several benefits to developers and users within the Ethereum ecosystem such as minimal integration requirements. Omni is designed to ensure compatibility and minimal integration requirements, making it easier for developers to work across different rollups without significant modifications and offer users a wide array of applications.

By providing secure and globally compatible Ethereum-native interoperability, Omni also provides a seamless communication and interaction between different Layer 2 rollups while deriving security from the Ethereum mainnet. Omni is introducing a universal gas marketplace that simplifies gas payments and enables users to interact with any application. It will streamline transactions while driving demand for the OMNI token.

Other than that, Omni is also designed to offer backward compatibility with existing rollup applications. This means developers can integrate Omni without modifying their existing contracts. With restaked ETH, Omni is building a secure environment for developers to build applications and users to interact and transact with different rollups.

The OMNI Token

One of the key factors in Omni Network’s mission to facilitate transactions on any Ethereum rollup is the OMNI token, an ERC-20 token launched on Ethereum L1. The token was listed first on Binance Launchpool as the 52nd project, letting users stake BNB and FDUSD into separate pools to farm OMNI tokens for the first four days. In conjunction with token genesis, OMNI was then listed on Binance, KuCoin, and Gate.io. 

OMNI can be used as a gas resource that facilitates transactions on any Ethereum rollup, while also servings as the native gas token for the Omni EVM. It will also act as the platform’s governance token, and will be used alongside restaked ETH as the protocol’s dual staking model to reinforce security. 

It has a maximum supply of 100 million with 10,391,492 (10.39% of total supply) circulating at genesis. To mark the token launch, the Omni Foundation announced the OMNI Genesis airdrop which will recognize the efforts of users who have contributed to the platform.

According to the token supply distribution outlined by Omni Network, 9,270,000, or 9.3%, of tokens are meant for the public launch. From this allocation, 3 million tokens will be distributed in the OMNI Genesis airdrop while the remaining tokens will be used for public launch pools and liquidity. 

Meanwhile, 29,500,000 (29.5%) OMNI will be reserved for the ecosystem development category which aims to foster a successful developer community. At genesis, 496,492 OMNI will enter the circulating supply for early validator rewards and network bootstrapping. The funds will initially be used at the discretion of the Omni Foundation before transferring this responsibility to token holder governance. 

Omni Network has also set aside 12,666,667 OMNI, or 12.67% of tokens, are to be directed at community growth initiatives such as grant funding. Similarly to the ecosystem development category, the Omni Foundation will make decisions on this fund before transitioning the responsibility to token holder governance.

The protocol’s current and future contributors are also up to receive from an allocation of 25,250,000 OMNI tokens. Individual contributors will undergo a four year vesting period with a one year cliff for ¼ of their total tokens. This is to be followed by stepwise unlocks every six months for the remaining tokens. All tokens allocated to core contributors are also subject to a three year unlock schedule that has a one year cliff for ⅓ of the total tokens followed by stepwise unlocks every six months.

In recognition of the investors from the Ethereum community that have backed Omni Network, 20,063,334 (20.06%) OMNI have been allocated to investors and are subject to a three year unlock which includes a one year cliff for ⅓ of the total tokens followed by stepwise unlocks every six months for the remaining ⅔ of tokens.

Lastly, a portion of 3,250,000 OMNI is allocated to advisors who have provided expertise and guidance to the network’s development. From this allocation, 625,000 OMNI will unlock at genesis while the remaining tokens are subject to a three year unlock schedule which includes a one year cliff. After the cliff, 875,000 OMNI will be unlocked, followed by 437,500 OMNI which will unlock every six months for the remaining two years.

To summarize, any locked or unvested tokens for the core contributors, investors, and advisors categories cannot be staked and will unlock completely across these categories three years after token genesis. On the other hand, the ecosystem development and community growth allocations are set to unlock at genesis but are subject to enter circulation based on the discretion of the Omni Foundation and community governance. Any inflation for validator rewards will be determined by community governance after the third year.

What Is Next for the Omni Network

The rest of the year is set to include some exciting events for the Omni Network, including the launch of its mainnet once the Omni Omega testnet has concluded. Other than that, the team is expecting to onboard more liquid restaking protocol and EigenLayer operators as well as expand Omni Network to include EigenDA and Celestia as alternative Data Availability systems.

Conclusion

Omni Network is an interoperability protocol with the mission of connecting all Ethereum rollups and presenting Ethereum as a unified network. The OMNI token will act as a connecting factor via Omni’s universal gas marketplace and also play a role in the dual staking mechanism. Many users are looking forward to the OMNI Genesis airdrop which rewards the Omni community for contributing to the development of the platform.