Parallel Computing Solution AO Unveils Token Economic Model These Two Things Can Earn You a 100Year Airdrop

Parallel Computing Solution AO Unveils Token Economic Model These Two Things Can Earn You a 100Year Airdrop

Parallel Computing Solution AO Unveils Token Economic Model These Two Things Can Earn You a 100Year Airdrop

Contents
Toggle
AO Announces Token Economic Model
AR Token Price Drops
AO Token Valuation
The parallel computing solution AO developed by the sustainable storage protocol Arweave development team announced the token economic model yesterday.
According to the official announcement, the number of tokens and issuance mimic the Bitcoin network, with a total of 21 million tokens, issued every five minutes, and halved every four years.


All tokens will be distributed fairly, without any presale or team allocation:
36% of the total supply will be allocated over time to AR token holders.
Additionally, the remaining 64% will be allocated over time to users who cross-chain assets (stETH) to AO to incentivize economic growth.
It is important to emphasize that AO tokens are not issued all at once. As long as you hold AR tokens or cross-chain assets to the AO network, you can continue to receive AO tokens until the final token is minted in approximately 100 years.
Token issuance traces back to February 27th, and those who meet the above rules will be allocated AO tokens. As of the team’s announcement, over 1 million tokens have been issued. However, AO tokens cannot currently be transferred or traded. The token transfer function will be enabled once 15% of the total token supply is minted, which is expected to happen around February 8, 2025.
Users holding AR can check their allocated AO tokens by visiting http://ao.arweave.dev and connecting their self-hosted wallets (such as ArConnect). If stored on an exchange, further platform announcements may be required.
Following the announcement, there was a significant drop in AR token price, attributed to the market’s “Sell the news” behavior and the lower than expected AR allocation. While the team’s decision to allocate most of the tokens to asset cross-chain users is understandable, the 36% allocation to AR token holders still left the community disappointed. Furthermore, the fact that cross-chaining stETH to AO can earn more AO tokens than holding AR reduces the short-term incentive to hold AR.
Currently, the pricing of AO is strongly linked to the market value of AR. Since AR holders can receive 36% of the total AO supply, the market value of AR (with almost all AR in circulation) is equivalent to 36% of the fully diluted valuation (FDV) of AO tokens.
This translates to an FDV of AO equal to $5.55 billion.
By February next year, when AO opens, approximately 15% of the tokens will be in circulation. Therefore, the market value of AO at the opening will be $832 million.