This article is sponsored by AirDAO.
Introduction to AirDAO
Initially launched way back in 2017, AirDAO is a decentralized, community-owned layer-one blockchain and Web3 ecosystem powered by the AMB token. The project aims to simplify the complexities of Web3 and make its benefits accessible to the average consumer through a single, user-friendly dashboard.
In previous years, the AMB token experienced significant downtrend due to inflationary tokenomics, which was not well-received. However, a recent update aims to change the game for both the token and the project.
Tokenomics turning point
On November 15, 2023, after months of dedicated efforts by the AirDAO development team, the project successfully initiated the first phase of its tokenomics upgrade at block height 27,690,000.
A significant milestone in the project's goal of a deflationary supply is the introduction of a hard cap by setting the total supply of AMB at 6.5 billion. With this cap, no new AMB tokens will be minted with the generation of new blocks, ensuring a fixed total AMB supply. The distribution of block rewards will now be facilitated through smart contracts, containing an allotted portion of the total AMB supply specifically dedicated to rewarding validator nodes.
This update marks a new era for node holders and stakers, especially considering the average APY hovering around 20%. Previously without the cap, validators and stakers have leaned towards liquidating instead of staking their AMB rewards, in part due to the low price of AMB. However with the elimination of token supply inflation, validators and stakers may find it to be more engaging and profitable to stake their AMB tokens for greater rewards.
More Updates
A user-friendly interface is crucial because AirDAO positions itself as a community-driven blockchain and ecosystem. The following updates significantly simplify and make launching validator nodes and engaging in staking more accessible for everyone.
Apollo validator node top list
Following the recent update, only the top 150 nodes can generate new blocks and receive rewards. Inclusion in the top list is determined by the size of the node's stake and a predefined limit on eligible nodes. The limit for the top list is not static but can be adjusted through MultiSig, ensuring adaptability in AirDAO's dynamic ecosystem.
A queue system has also been introduced for nodes that don't initially make it into the top list. These nodes can climb if they increase their stake or if top list nodes reduce their stake.
An essential aspect of the update is the implementation of a withdrawal delay for Apollo (validator) nodes. The 15-day delay enhances network stability and fortifies security by preventing sharp changes in the number of active nodes. It's crucial to note that the AirDAO Staking service has no withdrawal delay.
Apollo node installation and management
The recent update has also streamlined the installation and management of nodes, making it more user-friendly and secure. The project introduced three new address types—the node owner, node address, and reward receiver address, increasing node security and providing greater flexibility for node owners.
New address types
The project also developed an intuitive front-end interface for easy node installation and management.
Apollo nodes dashboard
A major improvement is the introduction of a dedicated dashboard for Apollo nodes, seamlessly integrated into the explorer. This dashboard serves as the central hub for node owners, offering the ability to adjust their stake size, change the node owner, or reward receiver addresses without restarting the node. Additionally, AirDAO has launched a Telegram bot to keep users informed and receive status notifications about their nodes.
What’s Next?
The tokenomics upgrade is the first step in the expansion and enhancement of AirDAO’s Web3 ecosystem, designed to elevate network stability and security while introducing new features. Stage One of this upgrade sets the groundwork for the exciting developments to follow.
In Stage Two, AirDAO will update the incentives and rewards system for node owners in return for their dedicated service. The AirBond marketplace will be upgraded, including improved functionality and block rewards distributed in AMB and BOND tokens. The network fee structure will be reworked, introducing three new fee types. Resulting from this change, the AirDAO treasury will also be fortified, receiving a diversified income from various revenue streams.
Summary
The previous AirDAO tokenomics for AMB entailed an unlimited total supply, meaning new tokens were generated every day/month/year. The increasing quantity of coins placed pressure on the price of the coin as validators and stakers liquidated their rewards.
The recent update has introduced a cap on the total supply of AMB at 6.5 billion, with no more new AMB being added to the ecosystem. After this fix to the AMB tokenomics, the project developers can now focus on building the ecosystem to make it more useful, bigger, and enjoyable, with diverse projects, new development teams, and more.
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