ALI Utility Token
Last updated
Last updated
The native ERC-20 Artificial Liquid Intelligence (ALI) Utility Token is fundamental to the decentralized operations, governance, and growth of the AI Protocol. The ALI Token is a blockchain-agnostic asset that can be used for creating assets, providing liquidity, staking, transacting, accessing AI Services, upgrading tokenized assets, governing the AI Protocol, rewarding various forms of user and creator participation, and much more.
On the Protocol level, the ALI Token serves to regulate, incentivize, and reward the various participants of the AI Protocol. As a decentralized protocol with a variety of participants engaging in complex tasks, the AI Protocol requires a native utility token to not only function efficiently but to grow using the inherent advantages of token network effects.
Let's explore a list of some of the functions and use cases for the Artificial Liquid Intelligence (ALI) Utility Token. This Token can be utilized:
The ALI Utility Token plays a massive role in supplying wells of liquidity for the purpose of fertilizing frictionless AI systems throughout the AI Protocol. These wellsprings provide a layer of liquid substrate to draw value from, lubricating the flywheels of value throughout. The mechanism of "locking up" ALI tokens within a variety of AI Protocol smart contracts emerges as a fundamental facilitator of liquidity. This lays the groundwork for a decentralized onchain economic model that drives the Protocol's advancement. iNFT Contracts and Intelligence Pod Contracts rely on locked up ALI to perform more complex and dynamic tasks, wherein ALI tokens are employed to upgrade these assets. This locking up of ALI facilitates transactions between these assets and their owners, but also facilitates the flow of compute and data resources to Hives - to be distributed to ALI Agents.
The establishment of ALI as a reserve token for ALI Agent bonding curve smart contracts enables their embedded liquidity to be facilitated. ALI can be used as an effective pairing in the efficient deployment and circulation of ERC20 Tokens within ALI Agent communities. By allowing for ALI to underwrite ALI Agent economies, the Protocol utility token not only ensures liquidity for tokenized AI assets but also greases the wheels of participation and innovation, fostering a dynamic evolution and advancement of onchain AI systems.
Additionally, the creation of Hive Liquidity Pools and ALI Staking Contracts significantly enhances this fluid intelligence network. Hive LPs play a critical role in providing necessary liquidity for Hive-native Utility Tokens, ensuring their availability and functionality within the ecosystem. ALI Staking Contracts, distributed across the AI Protocol ecosystem, establish a solid framework for token holders to stake their ALI, thereby rewarding them for their contributions to network security and stability, including Hives.
This intricate system of smart contracts, serving as a "token sink," effectively converts the locked-up ALI into a vast network of onchain wells to draw upon. This reserve system supports the vast array of tokenized AI Assets, providing the economic foundation required to power this cornucopia of generative and agentive onchain AI systems.
With the upgrade of the AI Protocol to V3, the ALI Token takes on even more responsibility as an essential unit of tokenized intelligence, particularly to serve functional on-chain and off-chain processes. On dApps like Noah’s Ark and ALIagents.ai, the ALI Utility Token can be used to purchase off-chain, dApp-native credits on the platform as well. These credits can be used to create and interact with onchain AI assets and pay to access specialized AI services.
Anyone can access the AI Protocol's GitBook to engage smart contracts that allow for the creation of tokenized AI assets as well. For example, the creation of Hives requires both an ALI Agent and a Level 5 Intelligence Pod to create a Level 5 ALI Agent, both of which can be created using the ALI Utility Token.
This makes the ALI Token an essential exchange of value for the creation of onchain decentralized AI assets.
Being that ALI is used to access AI Services from AI Protocol-Compatible Assets, owners of AI Protocol-Compatible Assets can be rewarded with ALI when users access their functions to perform tasks, interact with their Assets, and create content with them. Therefore, ALI serves the purpose of incentivizing creation of AI Protocol-Compatible Assets, like iNFTs and ALI Agents, and for delivering unique creations that are valuable to their users.
For example, Hives owners can create staking campaigns for ALI Token holders that rewards them with Hive-native Utility tokens. Another use case is for ALI Agent owners - for every transaction of ALI Agent Keys, there is a creator fee that is distributed to the Agent's owner, as the embedded liquidity within every ALI Agent is programmed to assess each Key transaction.
The ALI Utility Token functions as the quintessential medium for transactions, serving as the bridge between humans and on-chain AI assets, as well as facilitating interactions among those assets themselves. This mechanism ensures a standardized and efficient means of availing AI services, where the token acts not just as a medium of exchange but also as a value assessment tool for the services rendered by these tokenized AI assets. The ALI Utility Token is instrumental in enabling transactions between on-chain AI assets themselves. This inter-asset communication is critical for the autonomous operation of AI services where assets may require to access capabilities or information from each other. Consequently, ALI tokens streamline the process of leveraging the Protocol's AI capabilities, making advanced AI transactions more accessible and frictionless to participants throughout the Protocol.
In essence, the ALI Utility Token is the lifeblood of the AI Protocol ecosystem, enabling a fluid and dynamic marketplace of AI services and interactions. By serving as the universal unit of transaction, ALI tokens not only simplify the economic engagements within the ecosystem but also propel the growth and advancement of decentralized AI, fostering an environment where innovation, accessibility, and collaboration thrive.
AI Assets like Intelligence Pods are able to be upgraded by their owners, from intelligence Level 1 up to Level 5. Each Level is an upscaling of the Intelligence Pod's capacity to deliver off-chain intelligence data to its users. Whether the ALI Token is being fused with an NFT to create an iNFT, a Level 5 Pod being fused with an ALI Agent to create a Hive, or a Pod being connected to a Hive to provide compute power - the magnitude of the Pod's ability to deliver its AI Services is directly proportional to its intelligence Level.
The ALI Token is required to upgrade the Intelligence Level of any Pod, making ALI an essential utility for that upgrade.
Within dApps like ALI Agents and Noah’s Ark, the ALI Utility Token is used to access services from AI Assets, like ALI Agents and iNFTs. Whether to pay for credits to interact with an iNFT or to customize an ALI Agent with a cloned voice or a unique LLM - The ALI Token acts a unit of intelligence value for accessing the AI Services from AI Protocol-Compatible Assets and dApps on the AI Protocol.
The ALI Utility Token acts as a governance token when it comes to making decisions about the AI Protocol, using snapshot.org. With a trajectory of progressive decentralization, the AI Protocol requires more input from ALI Token holders over time, increasingly democratizing the determination of important functions to manage the development of the Protocol.
This gives the ALI Token an increasingly fundamental governance value, and can play a role in the shaping of the future of the Protocol, its tech stack, as well as the Assets and dApps that are built on it.
