Parallel Computing Solution AO Reveals Token Economic Model These Two Things Can Get You 100Year Airdrop

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AO Token Economic Model Released
AR Token Price Drop
AO Token Valuation
The parallel computing solution AO developed by the Arweave development team for the sustainable storage protocol was announced yesterday to have its token economic model revealed.
According to the official announcement, the token quantity and issuance mimic the Bitcoin network, with a total of 21 million tokens, issued every five minutes, and halving every four years.


All tokens will be distributed fairly, with no pre-sale or team allocation:
36% of the total supply will be allocated over time to AR token holders.
Additionally, 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 last token is minted in approximately 100 years.
Token issuance is retroactively calculated from February 27, and those who meet the above rules will be allocated AO tokens. By the time of the team’s announcement, over 1 million tokens have been issued. However, AO tokens cannot currently be transferred or traded and will only be enabled for transfer once 15% of the total token supply has been minted, which is expected to occur around February 8, 2025.
Users holding AR can check the allocated AO tokens by visiting http://ao.arweave.dev and connecting their self-custody wallet (such as ArConnect). If stored on an exchange, they may need to wait for further announcements from the platform.
After the announcement, there was a significant drop in the AR token price, partly due to the market’s tendency to “Sell the news” and also because the AR distribution ratio did not meet expectations. While it is understandable that the team allocated a majority to asset cross-chain users, the allocation of only 36% to AR token holders still left the community disappointed. Additionally, the fact that crossing stETH to AO can yield more AO tokens than holding AR reduces the short-term incentive to hold AR.
Currently, the pricing of AO is strongly tied to the market value of AR. Since AR holders can receive 36% of the total AO supply, in other words, the market value of AR (as almost all AR is in circulation) is equivalent to 36% of the fully diluted valuation (FDV) of AO tokens.
This translates to an FDV of approximately $5.55 billion for AO.
By February next year, when AO opens, approximately 15% of tokens will be in circulation. Therefore, the market value of AO at opening will be around $832 million.