5.0 AOV Tokenomics

AOV is the native utility and governance token of the Avao ecosystem. It is designed to enable participation, coordination, and long-term alignment across all layers of the platform — including decentralized compute provisioning, staking mechanisms, governance participation, and ecosystem curation. AOV is not a financial instrument and does not represent equity, ownership, profit rights, or guaranteed returns. Its purpose is to facilitate ecosystem access, governance participation, and protocol-level incentives for contributors who support Avao’s growth and resilience.

Fixed Supply, Time-Based Allocation

The maximum supply of AOV is capped at 1,690,000,000 tokens and allocated over a predefined 8-year distribution horizon. All token issuance follows time-based emission, vesting, and unlock schedules designed to ensure long-term sustainability, alignment, and transparency.

While the max supply is fixed, the circulating supply evolves dynamically over time based on emissions, vesting unlocks, ecosystem usage, and other protocol-defined sinks.

Emission Pools with Decay Logic

Two primary emission pools — Vault Emissions and Compute Rewards — are distributed on a monthly basis over 96 months (8 years) and follow a predefined annual decay curve. This structure rewards early contributors who help bootstrap the ecosystem, while ensuring that long-term issuance decreases predictably to prevent excessive dilution.

● Vault Emissions (30%) Incentivize users who commit AOV to time-locked vaults, reinforcing governance participation and ecosystem stability.

● Compute Rewards (8%) Incentivize users who contribute GPU and compute resources to the Avao Compute Marketplace.

Both emission pools are governed by protocol-defined schedules ensuring predictability and trust for participants.

Usage-Based Burns and Supply Dynamics

Certain protocol-level fees, including gas and service-related fees, may be subject to usage-based token burning, permanently removing a portion of AOV from circulation. These burns are directly linked to actual network activity and vary over time. Such mechanisms may introduce deflationary pressure during periods of high usage.

⚠️ Initial Allocations

Initial allocations, vesting schedules, lock durations, and emission pacing will be confirmed in the Final Whitepaper and Tokenomics release. No allocation category receives unrestricted liquidity at launch, and all distributions are structured to support long-term ecosystem health.

A high‑level forecast (will be determined exactly upon the final Whitepaper):

Design Principles

● Predictable Distribution: All emissions, vesting, and unlock schedules are predefined and transparent.

● Decay-Based Emissions: Vault and compute rewards follow a controlled annual pre-defined decay curve.

● Usage-Linked Burns: Token burns may occur as a result of real protocol activity.

● Utility-Driven Incentives: Rewards are tied to contribution and participation, not passive holding.

● Governance Alignment: veAOV prioritizes long-term commitment and ecosystem alignment.

● Transparency First: All allocation logic and supply mechanics are publicly defined and auditable.