Tokenomics

The Arbius (AIUS) token is used to pay generation fees of machine learning tasks inside the Arbius network.

It also is used for governance, conferring voting rights over future protocol upgrades and control of the Arbius treasury.

New coins are created to reward miners who solve tasks with a Task Reward. This can be thought of similarly to block reward in Bitcoin-like currencies.

Emission Schedule

There will only ever be 1 million coins. Arbius follows a continuous halving process, where the total potential amount of tokens generated at time t is constantly decreasing. If miners are solving more tasks the amount of new coins generated will shrink, and if they are not solving enough tasks the task reward will grow to attempt to match the emission schedule.

After 7 years, approximately 99% of all emissions will be released. Accommodations are in place to continue the rewards structure for ecosystem participation/miners after the circulating supply reaches the supply hardcap. This will be handled by DAO value accrual from various revenue streams. Futheremore, Arbius security is not dependant on task rewards, so this is primarily used for a fair distribution of coins.

The maximum supply of 1 million coins, means that similiar to Bitcoin eventually the emissions will be reduced to almost zero, with very little coins being minted, and ultimately no coins will be minted at all. This means that the model is designed to be eventually deflationary, as new token availability is drastically reduced over time.

To find the original charts of the emission schedule, please refer to the Arbius's whitepaper.

veAIUS Staking

Vote Escrow design is intended to align our community which consists of three primary participants- liquidity providers, token holders, and miners. We believe that providing veAIUS participants access to multiple revenue streams and the ability to use their voting power to shape AI model emissions rewards is important for fostering a healthy ecosystem. This is a core piece to shaping the compute of Arbius' peer to peer machine learning network. Some of the intended ecosystem revenue streams include (L3 fees, AI model fees, protocol owned liquidity revenue, value generated by AI agents, and potential "kickback" from successfully launched services incubated from the Arbius ecosystem that utilizes our decentralized AI model infrastructure.) Depending on how long a participant chooses to timelock their AIUS inside of the single-sided staking mechanism will determine the strength of the modifier that will amplify their veAIUS voting power as well as their claim to incentivizations.

Miner Staking

To become a miner inside Arbius you must stake 0.08% of the total amount of mined Arbius. This can be withdrawn after a 24 hour period. While Arbius total supply is less than 1000 there is no minimum required for staking.

Miners may be slashed for providing invalid solutions to tasks, the slashed funds is redistributed to other miners. This game theory encourages miners to only provide valid solutions to tasks (as in, reproducible).

Task Reward

New coins are generated to miners when they provide solutions to tasks using models which have the rate attribute above 0. Governance of Arbius determines which models are considered mineable.

Treasury

10% of all newly created Arbius is sent to the Arbius treasury, which is controlled by the governance system (DAO). This is intended to fund future development of Arbius and associated tooling. This is on a 4 year linear vesting schedule.

LP Staking Reward

9% of all Arbius is sent to a contract which distributes the Arbius to liquidity providers. This encourages sufficient liquidity to allow miners to enter and exit the network easily.

Initial DEX Liquidity

A initial of 1% of all supply to provide liquidity for Uniswap pair.

Private Sale

To support the first 6 months of marketing and development, 10% of all Arbius was sold for $300,000. This is on a 2 year linear vesting schedule.

Team Allocation

The Arbius team retains 10% of all Arbius tokens, on a 4 year linear vesting schedule. These tokens may be sold to fund future development.

Vesting Schedule Explained

For allocations labeled as linear vesting. This refers to a process where tokens are gradually released over a set period in a straight-line manner. This approach is often used in projects to ensure that stakeholders have a vested interest in the success and long-term sustainability of the project. For Arbius we use Sablier's streaming technology.