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Tokenomics update

Node owners, AMB holders, and Partners, please note: Our team activated update in two parts. The first part went live on November 15th, 2023 and the second part was implemented on January 9th, 2024.

Block number: 27690000

Learn more about updates

Our tokenomics update occurred in two key phases: Phase 1 (November 15, 2023) introduced adjustments to Apollo nodes, improved node interaction processes, set a hard cap on total supply, and more. Phase 2 (January 2024) conducted dynamic rewards tied to network size and introduced rewards for block validation in multiple coins and additional enhancements. You can find more details below.

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Hard cap on AMB total supply

The AMB token supply is now capped at 6.5 billion, and future blocks won't generate new AMB tokens. Block rewards will be distributed via dedicated smart contracts containing node rewards.

New node installation process

Installing and managing nodes is now simpler and more secure. We’ve created a front-end interface for installing nodes. We’ve also added a trio of address types that increase node security: the node owner, node, and reward receiver addresses. These address types increase flexibility for node owners and enhance security.

Apollo node dashboard

Node management has taken a big leap forward with integrating our new dashboard for Apollo nodes into the explorer. Got a node that’s up and running? You can now increase and decrease stake size and change node owner and reward receiver addresses without restarting your node — all through the dashboard. We’ve also made a Telegram bot to help you stay updated on your node with status notifications.

Explorer data update

We’ve added processing of block reward messages for display in Explorer, supporting both old and new message versions. We also developed a new mechanism for ValidatorSet to build a list of validators and display the correct state of the validator list in Explorer. We’ve also added a new method for calculating circulating supply in the new Explorer API.

AirDAO Tokenomics

AMB is the native token of the AirDAO ecosystem and powers the AirDAO blockchain — a fast, powerful, and ultra-secure Layer-1 network. AirDAO Tokenomics lays out the changes coming to AirDAO throughout 2023, establishes AirDAO as a DAO-governed layer one project, sets in motion the plan for a deflationary AMB token supply, and ensures the stability of the network for the long term with an upgraded rewards structure.

AMB Token

Medium of exchange
The first role of the AMB token within AirDAO’s ecosystem is as the network’s native token. AMB serves as the medium of exchange within AirDAO and is used for the gas necessary to execute on-chain transactions.
Utility
The second role of the AMB token is to ensure the operation of AirDAO’s blockchain via its staking in validator nodes — the node class responsible for verifying, confirming, and executing every transaction. All nodes on the network receive AMB rewards for the successful performance of their duties, making AMB the basis of AirDAO’s rewards structure.
Governance token
The third upcoming role of the AMB token within AirDAO is facilitating DAO governance. Users will be able to lock their AMB to receive voting power in the form of vote-escrowed AMB tokens (VOTE). These VOTE tokens will be used to vote on proposals within the DAO, entitling participants to earn a share of AirDAO revenue which will be paid out quarterly. More specifics regarding this role can be found in the “Voting” section.

Derivative tokens

While AMB, as a base-layer asset, is sufficiently versatile to fill the majority of the three roles mentioned earlier, three types of derivative tokens may be either necessary or desirable to create more flexibility and value for the AirDAO ecosystem.
Synthetic AMB (SAMB)
Synthetic AMB is AMB that has been placed into a wrapper—a type of digital vault that enables its use on other blockchains. Users can transfer their native AMB to Ethereum (ETH) and BNB Smart Chain (BSC) via the AirDAO Bridge, where it is wrapped to sAMB, securely stored, and made available for use on those other networks. AirDAO will expand the bridge to support and integrate with other major layer-one blockchains and provide sAMB liquidity to other layer-one blockchains.
Vested AMB (BOND)
Users that stake AMB in validator nodes receive block rewards for providing assets and services to the network. To incentivize node operators’ reliability, they will receive (25 + n)% of the rewards immediately at the first reward payout date, with n representing the number of completed 250,000 block staking epochs. (100 - (25 + n))% will be vested in the form of BOND, with every epoch staked increasing n by one (the first epoch will begin at n = 0).
BOND will be tradable on the AirBond Market for various crypto assets.
Vested AMB (BOND)
Vote-escrowed AMB (VOTE)
Users will obtain vote-escrowed AMB tokens by locking up AMB for a specified time. VOTE will not be tradable, and the underlying AMB will be inaccessible until the lockup period ends. In exchange for the lockup, VOTE gives users access to voting on proposals and governance participation and also allows actively engaged users to share in a rewards pool—including generated revenue, trading fees, and emissions.
Requiring ecosystem participants to allocate at least a portion of their AMB holdings towards either trading or actively participating in governance ensures that voters are both engaged and have a vested interest in the success of AirDAO while rewarding them for their active participation in governance. Vote-escrowed AMB also helps prevent larger parties from buying a significant amount of AMB to influence a vote and limits voting rights to committed and active ecosystem participants.AMB Rewards
Vote-escrowed AMB (VOTE)

Token distribution

AirDAO will institute a hard cap on the AMB maximum supply at 6.5 billion AMB tokens.
Of these, approximately 1.5 billion AMB tokens are currently in circulation or staked in AirDAO’s network of nodes. The tokens needed for specified use cases, as detailed later, will be generated at once so as not to have an ongoing inflationary effect on the supply. In line with AirDAO’s commitment to transparency, the generated tokens will be designated into smart contracts and/or multi-signature wallet addresses so the AirDAO community can verify the AMB within them.
Token Distribution
The AirDAO Council, composed of elected community members, holds the responsibility to make decisions that ensure the long-term health and growth of the ecosystem. If deemed necessary for the benefit of AirDAO, the Council can rebalance assets through a common decision made by its participants.

Hard cap breakdown

1.5b Current total
There are currently ~1.5 billion AMB tokens that are either circulating or staked in AirDAO’s network of nodes. The subsequent allocations are divided according to specific use cases, each with an unlock schedule governed by smart contracts and/or multi-signature wallets.
1.8b community rewards
1.8 billion AMB tokens are reserved for Community Rewards. Community Rewards will be distributed automatically by smart contract over ten or more years to validation providers. This allocation also accounts for rewards given directly to the community and users of future AirDAO products, features, and education.
0.85b team incentives
0.85 billion AMB is reserved for team incentives over ten or more years and is subject to a multi-year vesting schedule. This constitutes the allocation for all current and future team members and aligns team interests with the objectives of AirDAO; any AMB allocated to prospective team members will be returned to the Team Incentives allocation if they leave AirDAO.
1.5b for investors
1.5 billion AMB is allocated for investors—including existing deals payouts—and is subject to a multiyear vesting schedule. This will secure sustainable working capital for AirDAO long-term and allow it to achieve self-sufficiency.
0.85b ecosystem funding
0.85 billion AMB tokens are reserved for the AirDAO Ecosystem Fund, a pool to incentivize development in the AirDAO ecosystem.
The Ecosystem Fund will be under the management of the AirDAO council, with a majority approval on a multi-signature wallet necessary to deploy capital to ecosystem partners.
Ecosystem Fund tokens are locked indefinitely, with the community-owned DAO deciding when and how to use the funds.
Hard cap breakdown