Fair launch tokens could help the industry return to the true ethos of crypto, according to Arweave's founder.

The recent launch of the Arweave-based computing protocol AO has garnered significant attention and financial backing within the crypto community, amassing over $158 million in deposits within just a week. This development underscores the industry's eagerness for innovative technological solutions, particularly those combining artificial intelligence (AI) and blockchain capabilities.

AO Protocol: Key Features and Innovations

Built on Arweave:
- Permanent Data Storage: AO leverages Arweave’s permanent data storage layer, ensuring data immutability and long-term accessibility.
- Decentralized Computational Model: The protocol facilitates parallel application running, enabling efficient and scalable computations across the network.
- Onchain AI Applications: AO supports the execution of AI applications onchain, allowing large language models to operate within smart contracts, a significant step towards integrating AI directly with blockchain technology.

Significant Inflows and Industry Response

Rapid Growth:
- Total Value Locked (TVL): The protocol attracted over $158 million in deposits within a week of its launch, with $48 million worth of stETH (staked Ether) deposited on June 18 alone.
- Community Excitement: Sam Williams, the founder of Arweave, highlighted the industry's enthusiastic response, attributing the protocol’s success to the demand for new technological and economic models in the blockchain space.

Fair Launch Model:
- Community-Focused Distribution: The AO token was introduced through a fair launch model, without venture capitalist involvement, pre-sale, or pre-mining allocations. This approach ensures that 100% of the token supply is allocated to the community, aligning with the original ethos of crypto for fair and equal access.
- Economical Alignment: Williams emphasized that AO’s technology and economic model are designed to address core issues hindering mass adoption of crypto, promoting fairness and equal opportunity.

Impact on AI-Related Cryptocurrencies

Market Movement:
- Recovery in AI Tokens: Following the launch of AO, several AI-related cryptocurrencies showed signs of recovery. For instance, Fetch.ai’s FET token and SingularityNet’s AGIX token each rallied over 23% within 24 hours.
- Near Protocol’s NEAR Token: NEAR token also experienced an 8.4% intraday recovery after a previous weekly decline.

Conclusion

The successful launch and substantial deposits attracted by AO underscore a growing interest in merging AI with blockchain technology. By providing a decentralized platform for running AI applications and adopting a fair launch model, AO sets a precedent for future innovations in the space. This development not only highlights the potential for new technological solutions but also reinforces the crypto community's commitment to equitable access and decentralization. As the industry continues to evolve, protocols like AO could play a pivotal role in driving the next wave of blockchain and AI integration.