What is Arweave's new token AO? Introduction to AO Token Economics and Usage

Table of Contents

• What is Arweave AO?
• The operating principle of Arweave AO
• 1.Actor-oriented
• 2.The three units of AO
• 3.AOS
• Features of Arweave AO
• 1. High scalability (parallel execution)
• 2. Modular architecture
• 3. Transparent Achieving interoperability through a single unified computing environment
• What is AO Coin?
• AO Token Economics
• 1. AO Token Total Supply and Token Distribution
• 2.AO Token Issuance and Minting mechanism
• What is the future potential of AO coins?
• Summary

On February 13, the famous blockchain storage project Arweave announced the launch of super parallel computer AO to support large-scale AI The model is integrated into the blockchain smart contract for execution. The news sparked heated discussions among artificial intelligence and blockchain professionals.

To differentiate itself from Arweave, Arweave AO issued its own token $AO and announced all the details of the AO token economics on June 13.

In this article, we will introduce in detail all the information about Arweave AO and its cryptocurrency AO coin.

What is Arweave AO?

Arweave is a new type of blockchain storage network designed to solve the problems of permanent data storage and accessibility. The project ensures that information will never be lost by storing data on the blockchain. In addition, the unique encryption economic model encourages users to store and transmit data to ensure the reliability and security of the network. This allows users to securely store critical data such as documents, images, and videos and access them at any time without worrying about data loss.

Arweave AO is a hyperparallel computer built on Arweave, and its decentralized computing environment allows parallel execution.

Compared with existing blockchains, AO’s scalability is significantly improved. In addition, AO modularizes its architecture to give sovereignty and flexibility to the applications built on top of it.

This enhanced scalability enables AO to process large data sets and perform the intensive calculations typically required by artificial intelligence (AI) applications. By being built on Arweave and having access to persistent storage, AO can provide trustless computational verification.

The Arweave AO testnet was launched on February 27, 2024, representing a major shift from pure data storage to a comprehensive decentralized computing framework. It quickly attracted nearly 20,000 unique users and achieved sustained processing speeds of approximately 30 transactions per second (TPS), showing no signs of scalability limitations.

This initiative not only expands Arweave’s capabilities into complex areas such as artificial intelligence model training, but also saw a significant 180% increase in the market valuation of Arweave’s AR tokens shortly after the announcement, underscoring the market’s confidence in AO Confidence in the potential to power artificial intelligence applications and data analysis tools.

How Arweave AO works

AO is essentially a decentralized cloud service based on the Storage Consensus Paradigm (SCP). SCP is a storage-based consensus paradigm. The core idea is that if the storage is immutable and transactions are traceable, then the same result will be obtained no matter where the application's calculations occur.

AO achieves trustless consensus by uploading all states, inputs and outputs before and after calculation to Arweave. Any third party can download all the data and sequentially execute the execution environment (such as a virtual machine) to obtain a consistent end result, which allows permissionless verification. This means that Arweave AO can implement decentralized verifiable operations, which is the biggest advantage of AO over other decentralized cloud services.

Next, we will briefly understand how Arweave AO operates:

1.Actor-oriented

Arweave AO is an Actor-oriented computing system. Actor is the basic unit of concurrency in computer science. Being actor-oriented means adopting an approach based on the actor model. In this model, each Actor can modify its own private state, but if it wants to change another Actor's state, it must communicate with the other Actor indirectly through messaging.

This is suitable for building a highly concurrent, distributed and fault-tolerant system, which is why the project is named AO (Actor-Oriented).

2. Three units of AO

Arweave AO consists of three units, namely Messenger Unit, Scheduler Unit and Compute Unit.

The messenger unit is responsible for message communication, delivering messages to the computing unit, and coordinating the calculation results. The scheduler unit is responsible for scheduling and sorting messages and uploading them to Arweave. Finally, the compute unit is responsible for processing the calculations and uploading the results to Arweave.

AO is orchestrated through the blockchain, allowing each unit to act as a horizontally scalable subnet that can execute a large number of transactions simultaneously, thereby achieving high-performance computing. In theory, it provides almost unlimited computing power.

The core goal of Arweave AO is to provide a computing service that requires no trust and collaboration and has no practical scale limit, providing a new paradigm for applications combined with blockchain. Compared with other high-performance blockchains such as Solana, Aptos, and Sui, AO supports the storage of massive data, such as AI models. In addition, unlike Ethereum, which can only use a single shared memory space, AO allows any number of parallel processes to run simultaneously within the computing unit, coordinated through open message passing, without relying on a centralized memory space.

3.AOS

AOS is the official decentralized operating system established by Arweave based on AO, with functions and smart contracts Similar, but using Lua as the contract development language.

Lua is a compact, lightweight, extensible scripting language that is very different from well-known smart contract languages ​​such as Solidity, Rust, and Move.

AOS allows developers to launch a command line process and start issuing commands, providing a development experience similar to creating a new server instance on Alibaba Cloud and connecting to it via SSH. The difference is that this command-line process has smart contract properties, which means that these commands not only enable seamless user interaction across the network, but also provide the key advantages of decentralized and trustless computing.

Features of Arweave AO

Now that we have a better understanding of the architecture and operating principles of AO, let's explore the features it brings.

1. High scalability (parallel execution)

Each process within AO can remain independent, allowing an unlimited number of processes to run in parallel. Each process can customize its own mechanism without being restricted by other processes (such as block size, block time, execution method, consensus, etc.).

2. Modular architecture

The processes built based on AO are granted full sovereignty, and they can control the virtual machine (VM) type, sequencer style and Other design choices make decisions. Arweave leverages this to reach a broad developer base and recently announced support for Rust developers.

3. Achieve interoperability through a single unified computing environment

AO is built on Arweave and hosted on a set of heterogeneous nodes. Although independent, processes can be coordinated through an open messaging layer. Therefore, the above modular environment is unified by final settlement of all messages onto Arweave's decentralized data layer.

As AO founder Sam said, “We essentially took the orchestration of a normal blockchain and split it into different modular components, and then made each component horizontally scalable. subnetwork".

What is AO coin?

At the end of May, Arweave AO tweeted that AO will issue its own tokens and adopt 100% fair issuance. Each token will be minted by cross-chain to AO, holding AR or building .

According to the official statement, AO tokens will be used to protect messaging in its network. Its economic model adheres to the principles of fairness and equal access, with no pre-sales or pre-allocations.

AO Token Economics

On June 13, the AO Foundation officially announced all the details of AO Token Economics.

1. AO coin total supply and token allocation

First of all, the total supply of AO is 21 million tokens, which is modeled after Bitcoin’s 100 % Tokens are issued fairly, and the halving cycle is also 4 years.

According to the official statement, 100% of AO tokens are allocated to the community, 36% of which are allocated to AR holders and 64% to cross-chain users.

2. AO Token Issuance and Minting Mechanism

AO is distributed every 5 minutes, and the monthly distribution amount is 1.425% of the remaining supply.

Although the number of newly minted $AO tokens will be halved every 4 years, there is no sudden "halving event". The minting mechanism of $AO will ensure that the number of new tokens will increase slightly every month. reduction, resulting in a smooth issuance schedule.

However, officials stated that $AO will remain locked until approximately 15% of the supply is minted, which is expected to occur around February 8, 2025. In other words, AO tokens will only become transferable on February 8, 2025.

What is the future potential of AO Coin?

Finally, let's take a look at what analysts think of Arweave AO.

Messari research analyst Seth Bloomberg said AO will create "continued demand" for Arweave by providing a new application development platform.

Bloomberg added that one of AO’s biggest technical value propositions is its “separation of consensus mechanisms and computation,” which provides a modular architecture for the protocol.

On the other hand, @karl_0x of Thanefield Capital, a self-operated quantitative trading company, said that the only way for new participants to obtain AO tokens is to purchase AR tokens in the open market, which will cause "long-term buying pressure" on Arweave tokens. . He said, “Compared to other airdrops where insiders can use privileged information to obtain supply for themselves through the usual witch tactics, the only way for Arweave whales to gain significant AO exposure is to retain long-term AR holders, which significantly reduces ”

##Summary

To sum up, AO on Arweave represents a transformative approach to blockchain technology, focusing on Decentralized, participant-oriented computing system. AO leverages a complex architecture that allows for extensive data storage and high-performance computing, effectively supporting multiple parallel processes. This powerful combination not only drives artificial intelligence innovation, but also increases Arweave’s market value.

While we cannot be certain how the AO token will perform following its launch, experts note that the launch is expected to support the price of Arweave’s AR token.

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