AO Token Economics: 100% Fair Distribution and Earning AO by Holding AR

Introduction

The AO Foundation has officially unveiled the token economics for AO, a decentralized supercomputer built on Arweave. This groundbreaking model emphasizes 100% fair distribution, aligning with Bitcoin's principles while introducing innovative incentive structures.

Key Facts About AO Token

8 Essential Details

1. Fair Issuance Model: AO follows Bitcoin’s economic principles with no pre-sales or insider allocations.
2. Network Security: AO tokens secure messaging within the AO network.
3. Retroactive Minting: Minting began on February 27, 2024 (Block 1,372,724), rewarding Arweave (AR) holders proportionally every 5 minutes.

4. Future Distribution:

   • 33.3% to AR holders
   • 66.6% to incentivize asset migration into AO

5. Bridge Phases:

   • Phase 1 (Live): Pre-bridge for stETH deposits (Audited Contract).
   • Phase 2 (Upcoming): Full functionality for deposited assets.
6. Rewards Start: June 18, 2024 (11 AM EST).
7. Lock-Up Period: AO tokens become transferable around February 8, 2025 (~15% supply minted).

Tokenomics Overview

• Total Supply: 21 million AO (mirroring Bitcoin’s scarcity).
• Halving Cycle: 4 years, with monthly issuance decay (1.425% of remaining supply).
• Current Supply: 1,038,700 AO (as of June 13, 2024).

👉 Explore AO’s Fair Distribution Model

Distribution Breakdown

| Segment | Allocation | Purpose |
|-----------------------|------------|----------------------------------|
| AR Holders | ~36% | Base-layer security incentives |
| Asset Migrators | ~64% | Economic growth incentives |

How to Earn AO

For AR Holders

• Accumulated AO: ~0.016 AO per AR (as of June 13, 2024).
• Future Minting: 33% of new AO distributed to AR holders automatically.

Estimated 12-Month Earnings:

| AR Held | AO Earned |
|---------|-----------|
| 1 AR | 0.016 AO |
| 100 AR | 1.6 AO |
| 1,000 AR| 16.0 AO |

For stETH Depositors

• Eligibility: stETH (Lido-staked ETH) during pre-bridge phase.
• Rewards: 66% of newly minted AO distributed proportionally.

Projected 12-Month Earnings (Based on Yield Pool Share):

| Pool Share | AO Earned |
|------------|------------|
| 0.1% | 2,105 AO |
| 1% | 21,049 AO |

👉 Start Earning AO Today

Step-by-Step: Deposit stETH for AO

1. Visit AO’s minting page.
2. Connect Ethereum wallet (MetaMask/Rabby).
3. Enter Arweave wallet address for AO receipt.
4. Deposit stETH into the audited contract.
5. Sign transaction to complete.

Note: US citizens are ineligible for transition rewards.

Security Measures

• Audited Contracts: Trustless design with emergency withdrawal capabilities.
• Battle-Tested: Based on MorpheusAI’s deposit framework.

Conclusion

AO’s token model redefines fairness in crypto, prioritizing decentralized growth and community incentives. By holding AR or migrating assets, users contribute to a self-sustaining ecosystem aligned with Satoshi’s original vision.

FAQ Section

Q1: How is AO’s distribution “fair”?
A: No pre-sales or insider allocations—100% goes to AR holders and asset migrators.

Q2: When can I trade AO tokens?
A: Around February 8, 2025, once ~15% of supply is minted.

Q3: What’s the role of stETH in AO?
A: It’s the first eligible asset for AO rewards, with more PoS assets to follow.

Q4: How often are AO rewards distributed?
A: Every 5 minutes, with daily payouts starting June 18, 2024.

Q5: Can US citizens participate?
A: No, transition rewards exclude US citizens.

Q6: What safeguards protect my stETH?
A: Funds remain in an audited Ethereum contract; withdrawals are permissionless.