AO token economic model announced, blood-sucking ETH staking, transferable in February 2025

Arweave AR has launched a decentralized computing network called ao, which announced the token economy and fair distribution plan of AO tokens on 6/14 here.

Arweave promotes the decentralized computing network ao to create an innovative smart contract computing environment.

AO Token: Fair Issuance Model

The AO token is issued 100% fairly, following the economic model of Bitcoin. This ensures that all participants have equal opportunities with no pre-sale or pre-allocation, promoting fairness and accessibility.

Minting Mechanism and Initial Distribution

The minting of AO tokens began retrospectively from February 27, 2024, at 1:00 PM EST (Block 1372724). During this period, 100% of the minted AO tokens are distributed to Arweave token holders based on balances every five minutes. Those holding AR on exchanges or custody services will need to contact the respective institutions to receive the tokens.

Minting Rewards and Cross-Chain Incentives

In the future, one-third (33.3%) of AO tokens will be minted every five minutes for AR token holders based on their holdings. The remaining two-thirds (66.6%) will be used to incentivize economic growth by cross-chain assets into AO.

Open Cross-Chain

The initial phase of the cross-chain contract has been initiated. During this pre-cross-chain phase, user tokens will remain on their native network while users receive AO tokens. Once the second-stage cross-chain contract goes live, assets can be deposited into the new cross-chain contract to be used on the AO network and earn rewards.

Cross-Chain Rewards

Cross-chain rewards began on June 18, 2024, at 11:00 AM EDT. Although withdrawals can be made from the pre-cross-chain at any time, AO earnings will only be effective after the start of rewards distribution, which occurs daily.

AO Token Lockup and Supply

AO tokens will remain locked until approximately 15% of the total supply is minted, expected by February 8, 2025. The total supply of AO is 21 million tokens, halving every four years, similar to Bitcoin. As of June 13, 2024, 1.0387 million AO tokens have been minted, making them more scarce compared to other cryptocurrencies like Ethereum, Solana, and Ripple.

Token Distribution and Ecosystem Funding

The distribution model of AO emphasizes fairness, with approximately 36% of tokens minted for Arweave token holders to enhance the security of the AO base layer. The remaining 64% is allocated to incentivize economic growth through external yields and bridged assets. This model ensures a balanced and sustainable ecosystem development.

Permissionless Ecosystem Funding

Developers who attract users to deposit assets into their applications will receive AO token rewards, providing a long-term income source without the need for subsidies or external investments.

Permanent Network Ecosystem Development Council

Dedicated organizations and builders will share local revenues from assets stored in bridges to support core protocol development, market promotion, and critical infrastructure. This funding gradually decreases with the network's minting rate.

Can I Get AO Tokens?

AO token minting began on February 27, 2024, retroactively for Arweave holders. Holders can check their balance by connecting their self-custody wallet to ao.arweave.dev and major exchanges are in the process of determining the distribution of AO to their users.

Get AO by Holding AR

New AO tokens are minted every five minutes, with 33% allocated to AR holders after the pre-cross-chain launch. Here is an approximate accumulation of AO based on AR holdings over the next 12 months:

• 1 AR: 0.016 AO
• 10 AR: 0.16 AO
• 50 AR: 0.8 AO
• 100 AR: 1.6 AO
• 500 AR: 8.0 AO
• 1000 AR: 16.0 AO

AO tokens are expected to be transferable around February 8, 2025.

Stake ETH! Pre-Cross-Chain stETH to AO

Eligibility and Process

During this initial period, staking ETH deposited in Lido can earn AO rewards. Pre-cross-chain assets will remain on Ethereum until the second-stage bridge goes live. The method to exchange stETH earnings into AO tokens is as follows:

1. Visit the minting page on the AO website.
2. Connect your Ethereum wallet (Metamask or Rabby).
3. Enter the Arweave wallet address to receive AO tokens.
4. Deposit stETH into the audited contract.
5. Sign the transaction in the ETH wallet.

AO: A Novel Minting Approach Inspired by Bitcoin

AO introduces a groundbreaking minting process that rewards users and developers. Inspired by Bitcoin's innovation, AO's model is based on fairness and equality, aiming to promote a permissionless decentralized network.

However, the AR token did not experience a surge in response to this news, as it has declined along with the broader market in recent days.