Darren Lau, founder of The Daily Ape, wrote that AO announced the token economics, 100% of which was allocated to the community, 36% to AR holders, and 64% to cross-chain users. AO said yesterday that it would announce all the details of AO's token economics on June 13, and 125 users were invited to participate in the live broadcast event.

1. AO: The perfect combination of on-chain storage and computing

AO is built on Arweave's on-chain storage, which enables infinitely scalable decentralized computing and allows any number of processes to run in parallel. The decentralized AI Agent is hosted on the chain by AR and run on the chain by AO. AO is an official Arweave project launched by Arweave founder Sam Williams, which supports the introduction of large AI models into smart contracts on the blockchain.

A16Z @a16zcrypto's CTO highly praised AO's programming model as "very elegant" and an impressive work. At the same time, Hill, head of research at SevenX Ventures, a well-known Web3 investment institution, excitedly tweeted 20 minutes after the AO conference started: AO may be the ultimate solution for hosting and running decentralized artificial intelligence agents (AI agents).

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2. Storage and Computing of On-Chain AI

AO's vision is to achieve seamless integration of AI and blockchain, so that AI models can be hosted on-chain and run directly on the chain to achieve autonomous decision-making. This will greatly enhance the intelligence level of decentralized applications and bring revolutionary changes to the encryption field. Funds are not just passively stored, but can be actively operated, calculated and optimized through AI, and improve the liquidity and utilization efficiency of funds.

In traditional finance, funds are deposited in banks and managed uniformly by banks, which is inefficient and cumbersome. In DeFi, assets can be automatically pledged and circulated, which improves the efficiency of fund utilization. On AO, all funds are managed by users themselves and managed by their own robots or AI. Each fund can have its own strategy, which greatly improves the intelligence level of financial assets.

3. Challenges and solutions for putting AI models on the blockchain

The core goal of AO is to achieve trustless and collaborative computing services without any practical scale limitations, providing a new paradigm for applications combined with blockchain. At present, mainstream public chains have shortcomings in on-chain AI:

  • Ethereum: Although it dominates smart contracts, its computing and storage space capabilities are limited, making it difficult to handle complex AI models and its operating costs are high.

  • Solana, Aptos, and Sui: They have high throughput, but their main optimization direction is transaction processing speed. They do not provide enough support for complex AI calculations and cannot store AI models on the chain.

  • Filecoin and io.net: Although they proposed decentralized storage and computing power, they have more to do with the realization of storage or computing power markets, and lack innovation to achieve censorship-resistant, non-shutdown or decentralized computing methods.

In contrast, AO leverages Arweave's decentralized storage solution to ensure the permanence and immutability of data and significantly improve processing efficiency through its parallel computing capabilities. AO consists of three subnets: Messenger Unit (MU), Scheduling Unit (SU) and Computing Unit (CU), which cooperate with each other and are respectively responsible for receiving processing information, scheduling and sorting information, and actual computing operations.

4. AO+AR Architecture

AO is a distributed, decentralized, actor-oriented computing system based on Arweave. AO improves the scalability and efficiency of the system by separating computing and storage. This design is particularly important for running large AI models because it significantly improves computational efficiency and speed.

AO is designed to allow any number of processes to run in parallel, and coordination between processes is achieved through a message-based system. All interaction logs and calculation processes are recorded on Arweave, ensuring the credibility of the calculation process and results.

5. Ecosystem of autonomous AI agents on the chain

Since the release of the testnet, the number of developers and network messages in the AO ecosystem has grown rapidly. The AO Ventures incubator has played a key role in promoting the development of the AO ecosystem, attracting a large number of developers and innovative projects.

  • Autonomous Finance: Financial agents implemented using the AO platform, including DCA asset management agents, autonomously balanced index fund agents, etc.

  • Apus Network: Achieve trusted AI inference results through Trustless GPU solutions combined with Arweave’s decentralized storage and AO’s hyper-parallel computing.

In addition, there are many GameFi and DeFi projects on AO:

  • AO GAMES: A full-chain game distribution platform built on AO that supports the introduction of AI models.

  • AOX: A cross-chain bridge project of the AO ecosystem, providing cross-chain asset services between the AO network and other blockchain networks.

  • ArSwap: DEX of AO ecosystem, supporting transactions of multiple AO assets.

  • aoWebWallet: Native AO web wallet, supports the management of assets on AO.

6. Token Economics

On May 30, 2024, AO announced that it will soon complete the issuance of $AO tokens, and the token will be launched on June 13. $AO tokens use the same total amount of 21 million as Bitcoin and a halving mechanism every four years, ensuring the scarcity and fairness of the tokens.

The ways to obtain tokens include: (1) bridging assets to AO (2) holding $AR (3) participating in the construction of the AO ecosystem. The official hopes to ensure a fair launch of tokens through these methods.

7. Token usage scenarios

AO tokens and AR tokens have their own functions. AR tokens focus on Arweave's storage function and consensus maintenance, while AO tokens focus on solving communication problems between computing and applications. AO and AR maintain the computing and storage functions of the network respectively.

Through this design, the AO+AR architecture realizes the true possibility of on-chain AI agents, making decentralized computing more efficient and reliable.