AO Token Economy Announced ETH Staking with Vampire Mechanism Transferable in February 2025
Arweave (AR) launched the decentralized computing network ao, announcing the token economy and fair distribution plan for the AO token on 6/14.
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Arweave introduces decentralized computing network ao, creating an innovative smart contract computing environment
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Table of Contents
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AO Token: Fair Distribution Model
Minting Mechanism and Initial Distribution
Minting Rewards and Cross-Chain Incentives
Open Cross-Chain
Cross-Chain Rewards
AO Token Lockup and Supply
Token Distribution and Ecosystem Funds
Permissionless Ecosystem Funds
Permanent Web Ecosystem Development Guild
Can I Get AO?
Holding AR to Obtain AO
Stake ETH! Pre-Bridge stETH to AO
Eligibility and Process
AO: A New Minting Method Inspired by Bitcoin
AO is a 100% fairly distributed token modeled after the economic model of Bitcoin. This ensures that all participants have equal opportunities, with no presale or pre-allocation, promoting fairness and accessibility.
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Minting of AO tokens began retroactively from February 27, 2024, at 13:00 EST (Block 1372724). During this period, 100% of minted AO tokens are distributed to Arweave token holders based on their balance every five minutes. Those holding AR on exchanges or custodians need to contact the respective institutions to receive the tokens.
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 crossing assets to AO.
The initial phase of cross-chain contracts has now been launched. During this pre-bridge phase, user tokens will remain on their native networks while users receive AO tokens. Once the second phase of cross-chain contracts is live, assets can be deposited into new cross-chain contracts to be used on the AO network and earn rewards.
Cross-chain rewards will start on June 18, 2024, at 11:00 AM EDT. While withdrawals can be made from the pre-bridge at any time, earning AO rewards will only be effective after the start of rewards distribution, which occurs daily.
AO tokens will remain locked up until approximately 15% of the total supply is minted, expected on February 8, 2025. The total supply of AO is 21 million tokens, with halving every four years, similar to Bitcoin. As of June 13, 2024, 103.87 thousand AO tokens have been minted, making them more scarce compared to other cryptocurrencies like Ethereum, Solana, and Ripple.
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 approximately 64% is used to incentivize economic growth through external revenues and bridged assets. This model ensures a balanced and sustainable ecosystem development.
Developers who attract users to deposit assets into their applications will receive AO token rewards, providing a long-term source of income without the need for subsidies or external investments.
Dedicated organizations and builders will share local revenues from assets stored in bridges, supporting core protocol development, market promotion, and critical infrastructure. This funding gradually decreases with the minting rate of the network.
Minting of AO tokens began retroactively to Arweave holders starting from February 27, 2024. Holders can check their balance by connecting their self-custody wallets via ao.arweave.dev, with major exchanges determining the process of distributing AO to their users.
New AO tokens are minted every five minutes, with 33% allocated to AR holders after the pre-bridge launch. The following 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.
During this initial period, depositing stETH (ETH staked in Lido) will earn AO rewards. (Not available to US residents) Pre-bridge assets will be held on Ethereum until the second bridge phase is live. The method to exchange stETH earnings for AO tokens is as follows:
Visit the minting page on the AO website.
Connect your Ethereum wallet (Metamask or Rabby).
Enter your Arweave wallet address to receive AO tokens.
Deposit stETH into audited contracts.
Sign the transaction in your ETH wallet.
AO states that its token introduces a groundbreaking minting process to reward users and developers. Inspired by the innovation of Bitcoin, AO’s model is based on fairness and equality, aiming to promote permissionless decentralized networks.
However, the AR token did not see an increase as a result of this news, following the general market decline in recent days.
AR
Arweave
Ethereum
Bitcoin
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