AI Network’s Token Economy
Our development team has mostly spent a lot of time discussing the technology and vision of the future so far, but today we would like to discuss the token economics aspect of AI Network. Our discussion will range from the supply of tokens, transaction facilitation, and token distribution.
The AI Network white paper, which was released early July this year, provides the following information about AIN tokens:
Role of the token
- A utility token that allows for the purchase of various services provided by AI Network
- Accurately and precisely measures computational cost
- Role as a stable supplier of computing resources for developers (users)
Token issuance
- Initial AIN supply will be 700,000,000 tokens
- Tokens will be initially issued as ERC-20, but will be swapped to mainnet tokens 1:1 once the mainnet launches
Token economics model
- Will be applied after the mainnet launch (not applicable until initial issuance is burnt)
- Burn & Mint Model
- Tokens are issued or burnt based on algorithms that measure the amount of computation power available in the network
- Algorithm design is developed through consensus in AI Network community
- Algorithms can be updated depending on community consensus
Token Distribution
- 60% of 700,000,000 AIN tokens are traded on public channels (exchanges, etc.)
- 40% of 700,000,000 AIN tokens will be distributed to AI developers, block verifiers and computing resource providers who participate in the AI Network community.
In addition to the extract of the white paper above, more details are given below.
First, we would like to discuss the point in time that tokens can start being traded. As you all know, since the initiation of the project mid last year, AI Network has been in development for about a year without any public ICOs. We expect 420 million (60% of the volume) AIN to be traded and used by developers, AI service users, and computing resource providers who need to utilize AI Network’s services according to their needs. Therefore, in comparison to last year, when sources for token usage was limited, we expect to accelerate transactions and use in the second half of 2019, with the launch of our testnet and various services.
We are still looking for the right places to use an estimated 280 million (40% of the volume) AIN tokens, which will be distributed to the community, without having to waste them on unnecessary marketing or partnerships. After the launch of our testnet and services in the second half of this year, the tokens will be used for partnerships with open source and AI developers, as well as the costs involved in the activation of services. The distribution plan is as follows:
- AI Network Blockchain Development Team: approx. 52.5 million AIN (7.5%)
- AI Network AI Cloud Solution Provider / the First Resource Provider with a Strategic Partnership: approx. 52.5 million AIN (7.5%)
- AI Network Contributors (e.g. AI developers, computing resource holders, blockchain contributors): approx. 140 million AIN (20%)
- Marketing: approx. 35 million AIN (5%)
We will keep you informed on AI Network partnerships.
Last but not the least, we have token trading limits on the development team’s tokens. Currently, about 7.5% of AI Network’s token supply has been distributed to the development team, which will be locked up until the mainnet launch in 2020. Below are the two wallet addresses that will allow the community to check the token lock status for both accounts.
Wallet address:
- 0x9FbA1121dBc7757135e463Cb47003B5da52dd776
- 0x35FaeC63248DC5b2c409644aA55e3347CA7fFC0D
We apologize for the slightly tardy update, but we are certainly glad to share the news before our tokens are listed on exchanges. We will continue to update the community via this blog. You can also find public announcements regarding our project on Xangle. Thank you for reading.
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