What is AirDAO (AMB)?

Introduction

The rise of blockchain technology and cryptocurrency has led to the emergence of several decentralized financial (DeFi) products and services. However, despite the numerous benefits of DeFi over traditional finance (TradFi), such as transparency, accessibility, and security, its adoption is still limited to a small number of technical users. This is because existing DeFi products are complex and difficult to use, creating a barrier to mainstream adoption. AirDAO aims to address this issue.

In this article, we will take an in-depth study of AirDAO — a decentralized autonomous organization that is revolutionizing the DeFi space. Also, the operations of AirDAO, its ecosystem, strategic partnerships, and governance structure, as well as the significance of its native token, AMB, will be explored.

What is AirDAO?

AirDAO is a decentralized autonomous organization that seeks to bring user-friendly decentralized applications (dApps) to the blockchain industry. It governs the Ambrosus blockchain and its suite of dApps powered by the AMB token, which provides fast, secure, and low-cost transactions. AirDAO is designed to make DeFi accessible to everyone, regardless of their technical expertise, and aims to bridge the gap between DeFi and mass adoption.

AirDAO provides an alternative financial system that operates independently of central authorities and governments. By leveraging the power of blockchain technology. AirDAO offers a decentralized, transparent, and secure platform that empowers individuals to take control of their financial future.

Additionally, AirDAO is attracting increasing interest from crypto investors with a decentralized governance structure and plans for the DeFi space.

History of AirDAO

In March 2022, the Ambrosus Network team began to explore new potential use cases for their ecosystem, which was originally launched in 2017 with a focus on supply chain and IoT (Internet of Things). The team recognized the powerful features of the Ambrosus Layer-1 blockchain (AMB-NET) and sought to develop new products that would drive the usage of the AMB token and its network forward. This new mission, known as “Ambrosus 3.0,” led to the creation of AirDAO, an integrated Web3 product experience designed to make decentralized finance more accessible to average users.

AirDAO officially launched on September 15, 2022, and has been governing the Ambrosus Network ever since. Since its launch, AirDAO has brought in new community members, management, and partners, all dedicated to building products that prioritize the user experience.

How does AirDAO Work

Source: AirDAO Academy

AirDAO operates through community governance, utilizing a multi-branch governance structure and tiered multi-sig technology to create a Layer-1 community. Users can create and vote on proposals, actively directing the development and vision of the project. This community oversight allows for a decentralized decision-making process, with the community receiving the native token AMB for their participation in shaping the future of AirDAO.

In addition to community governance, AirDAO is building products focused on optimizing Web 3.0, with their first product being FirepotSwap, a decentralized cryptocurrency exchange (DEX) created in collaboration with Firepot Finance. Users can trade AMB and other tokens on the DEX while also staking their liquidity holdings and earning rewards. FirepotSwap is a core function of the AirDAO ecosystem and serves as a springboard for future expansion and growth.

To provide a seamless trading experience, AirDAO offers one-click staking, a network explorer, and a multichain bridge that allows users to move AMB across different blockchains. This feature will enable AirDAO to expand into other networks and interact with different projects.

AirDAO’s Ecosystem

AirDAO is a blockchain ecosystem designed to make Web3 accessible and user-friendly for both veterans and newcomers. The ecosystem comprises various products, including the AirDAO Network, Dashboard, Nodes and Staking, Bridge, and Block Explorer, all of which work together to create a seamless user experience.

The AirDAO Network is a secure and inexpensive layer-one blockchain, while the Dashboard is designed for non-technical users. The Staking platform uses a Staking-as-a-Service model that delegates node operators through smart contracts. The Bridge allows users to convert their AMB to tokens running under the ERC-20 or BEP-20 standard, and the Block Explorer makes it easy to navigate the AirDAO Network ecosystem.

Roadmap

AirDAO has a clear vision for the future, with an ambitious roadmap that outlines its growth and development plans. The roadmap consists of three distinct phases, each with specific goals and objectives. In Phase 1.0, AirDAO will lay the foundation for its ecosystem by launching a new website, brand, and dashboard, and integrating Ambrosus products. Phase 2.0 involves the full integration of Ambrosus products and the introduction of new products, while Phase 3.0 introduces a marketplace built on AMB-net and third-party dApps.

The company has already made significant progress toward its goals. The launch of the AirDAO web app and FirepotSwap in September 2022 laid the groundwork for future growth and development. The company has continued to build on this foundation with the development of a multi-sig 5/9 wallet structure, an incentive structure for its AMB team, and a mobile team in-house. AirDAO has also released new tokenomics and set up an on-chain voting environment for snapshot voting.

The coming months promise to be equally exciting, with the release of the AirDAO mobile MVP app, the community’s opportunity to elect members to the AMB-net L1 multi-sig, and the launch of the AirDAO Launchpad. AirDAO aims to have 1 million monthly active users across all its products by the end of 2023, with a CMC top 250 ranking.

Partnerships

AirDAO has established partnerships with various companies in the cryptocurrency industry, including INC4, WhiteBit, Bambu Labs, DWF Labs, Trustee, Coin Net, MEXC Global, and FirePot Finance. These partnerships bring together diverse resources and expertise to support the development and growth of the AirDAO ecosystem. For instance, INC4 is expected to provide technical support and expertise in the development of dApps.

What problem does AirDAO solve in DeFi?

AirDAO solves the problem of limited access to TradFi products and services. However, its decentralized platform and user-friendly interface provide individuals with the opportunity to access DeFi products, which are typically only available to a select few. It also seeks to eliminate the inefficiencies of Web3 and the high fees of traditional financial institutions, enabling more people to participate in the global financial system.

Overall, AirDAO’s innovative approach to DeFi has the potential to revolutionize the traditional financial system and make it more accessible to a wider range of individuals.

Benefits of using AirDAO

• User-friendly interface for both experienced and novice users
• Community-driven approach with user participation in decision-making
• Eliminates the inefficiencies of Web3
• Decentralized and transparent decision-making process
• An intuitive interface allows for easy access and navigation of various features

Risks Associated with using AirDAO

• New platform: Being a new platform, AirDAO may face challenges in attracting users and establishing market share in the short term.
• Regulatory uncertainty: Unclear or changing regulations can impact the platform’s operations.
• Governance attacks: Bad actors may try to manipulate or disrupt the platform’s decision-making processes.
• Limited recourse for dispute resolution: There may be limited options for resolving disputes or seeking compensation.

What is AMB?

The AMB token is the native token that powers the AirDAO ecosystem. It is an ERC-20-compatible token that is used to perform various functions within the ecosystem. It is used as a medium of exchange within the network for executing on-chain transactions and also serves as a utility token.

AMB is staked in validator nodes responsible for verifying, confirming, and executing transactions, which ensures the stability and operation of the AirDAO blockchain. The staking process also forms the basis of AirDAO’s reward structure, where all nodes on the network receive AMB rewards for the successful performance of their duties.

As AirDAO continues to develop, the AMB token will play a crucial role in facilitating DAO governance. Users will be able to lock their AMB tokens to receive voting power in the form of vote-escrowed AMB tokens (veAMB). The veAMB tokens will enable users to vote on proposals within the DAO, providing participants with a share of AirDAO revenue that will be paid out quarterly. This aspect of the AMB token is set to establish AirDAO as a DAO-governed layer one project.

Derivative Tokens

Derivative tokens are crucial to the AirDAO ecosystem, providing flexibility and value. The three types of derivative tokens are sAMB, vAMB, and veAMB. sAMB allows users to transfer AMB to other blockchains, expanding its use cases and providing liquidity. vAMB is earned by staking AMB in validator nodes, with a portion of the rewards available immediately and the rest vested in vAMB bonds, which can be traded on the AirDAO Bond Market. veAMB is obtained by locking up AMB for a specified time, giving users voting power and access to governance participation, incentivizing active participation in governance, and preventing larger parties from influencing votes.

These derivative tokens provide various benefits to the AirDAO ecosystem, including expanding the use cases of AMB, creating another avenue for users to earn rewards and participate in the ecosystem, and promoting active participation in governance. The different types of derivative tokens cater to different user preferences and promote a fair and engaged ecosystem.

Tokenomics

Source: AirDAO Medium Platform

The AMB token is set to have a maximum supply of 6.5 billion tokens, with 1.5 billion currently in circulation or staked. Another 1.8 billion tokens will be reserved for community rewards and incentives, which will be distributed automatically to validation providers for at least a decade. Additionally, 1.5 billion tokens will be allocated to existing and future investors with multi-year vesting, while 0.85 billion tokens will be set aside for incentives for current and future team members. Finally, 0.85 billion tokens will be used for ecosystem funding to be decided by the community-owned DAO.

This distribution was planned with sustainability in mind, with the intention of AirDAO becoming entirely self-sufficient and autonomous in the future. Burning mechanisms will be implemented to increase deflation as AirDAO grows, and the community will retain majority control of tokens over time.

Tokenomics Upgrade

Source: AirDAO Medium Platform

AirDAO has successfully passed its first-ever governance vote, in which the community voted to implement a tokenomics upgrade. During the 3-day voting period held between March 3 and March 6, 2023, more than 100 million AMB tokens were utilized for participation, with over 87 million AMB casting votes in favor of the proposal. The vote establishes AirDAO as a community-governed layer one project and enables the transition to DAO governance. As part of the upgrade to tokenomics, a maximum token supply will be implemented, and the AMB supply will be made deflationary through burning mechanisms.

Stage one of the upgrade, set to begin in March 2023, will focus on validator node upgrades and the preparation of smart contracts for future updates. Stage two, planned for June 2023, will see upgrades to the rewards structure and the implementation of a new fee structure. A bond market will be created for node rewards, and updates to AirDAO’s multi-sig will be made. Stage three, scheduled for mid-October 2023, will focus on updates to AirDAO Voting, including the implementation of token-based voting. The tokenomics upgrade aims to create a more stable and valuable token by making the AMB supply deflationary, incentivizing long-term holding, and increasing network stability through validator node upgrades.

Governance

Source: AirDAO Tokenomics Document

AirDAO Governance is a system that allows community members to participate in decision-making regarding AirDAO’s operation and changes to its protocol. To participate in voting, AMB holders can lock their tokens and receive veAMB tokens, which determine their voting power based on the amount of AMB they have locked and the duration of the lockup period.

The voting process involves two phases: the proposal phase, where a proposal is posted on the governance forum for discussion, and the voting phase, where the community uses AirDAO Snapshot to vote on the proposal. Once the voting stage is over, the AirDAO Development Team prepares the AirDAO Improvement Proposal (AIP) based on the consensus of the Snapshot vote.

AirDAO Fund Multi-Sig Election

Source: AirDAO Medium Platform

AirDAO has recently completed an election process, which took place from March 10 to March 13, to select two community members for the multi-signature wallet responsible for managing the AirDAO Ecosystem Fund. The fund, consisting of 850 million AMB, was allocated following a successful tokenomics upgrade proposal vote. The community members elected will be responsible for determining how the funds will be used.

The election was conducted using AirDAO’s Snapshot, and potential candidates were shortlisted by the AirDAO Ambassador Program based on their suitability for the role and involvement in the AirDAO community. Prior to the election, AirDAO held several AMA sessions to educate the community on the importance of community involvement in managing the AirDAO ecosystem, highlighting the significance of this step towards full decentralization. This election embodies AirDAO’s commitment to decentralization and community involvement, which will be vital for the long-term goal of having the entire blockchain and dApp ecosystem managed by the community.

What is the Significance of holding AMB?

Holding AMB tokens offers two significant benefits. Firstly, it allows for community participation in AirDAO’s decision-making process and future development, which can increase community engagement and shape the direction of the ecosystem. Secondly, AMB tokens provide potential financial benefits as they are used to access and use various dApps and products, potentially generating value for both users and the wider AirDAO community.

Additionally, the new tokenomics upgrade will make the AMB token supply deflationary through burning mechanisms, incentivizing long-term holding and potentially increasing the token’s value over time. Thus, holding AMB tokens offers both governance participation and potential financial rewards, making it an attractive investment opportunity for those interested in the AirDAO ecosystem.

The Profitability of investing in AirDAO (AMB)

AirDAO presents a compelling investment opportunity for several reasons. Firstly, it is a community-governed DAO that seeks to establish a self-sustaining ecosystem of decentralized applications and products. Secondly, it solves the problem of the lack of user-friendliness in Web3 by providing a seamless and intuitive experience for users. This is a unique feature that gives AirDAO an advantage over its peers. However, like all investments, there are inherent risks, and it is crucial for investors to conduct their research and due diligence before committing to AirDAO.

Conclusion

AirDAO is a decentralized ecosystem of applications and products designed to enhance the user-friendliness of Web3. Powered by a community-governed DAO structure and native token (AMB), AirDAO enables users to take an active role in the project’s development and direction while offering financial benefits like revenue sharing and value appreciation.

However, investing in any cryptocurrency project, including AirDAO, involves risks, and investors should conduct thorough research before making a decision. Despite this, AirDAO’s innovative approach to decentralized governance and its potential to solve real-world problems in the Web3 ecosystem make it a project worth considering for those interested in decentralized finance.