# AO Fair Launch

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With its fair launch model, AO takes a different approach to token distribution, overcoming common issues faced by traditional airdrops.

Let’s look into it!

### What are Airdrops?

Airdrops are a method of distributing tokens to users, often for free as part of a marketing or community-building strategy.

However, they can face criticism due to problems such as centralization, technical difficulties, unfair eligibility, etc.

### AO's Fair Launch

AO aims to address these problems with its fair launch model. AO distributes 100% of its 21M tokens to the community:

36% to Arweave (AR) holders, rewarding them for their role in the ecosystem.

64% to users bridging assets like staked ETH into AO, bringing liquidity and utility from other networks.

### AO’s Tokenomics

AO uses a bitcoin inspired halving cycle to promote long-term value and stability. Tokens are realised every five minutes, with the value decreasing gradually over time.

With this scarcity-driven approach participants are inspired to hold onto their tokens, minimizing speculative selling and preventing price crashes.

AO uses gradual distribution and long-term incentives to avoid the instability found in badly designed token systems.

### Why does it Matter?

AO’s fair launch flips the script on traditional airdrops. By giving 100% of tokens to the community, it avoids the common problems, like centralization and unfair distribution.&#x20;

This model sets a new standard for fairness and transparency in the crypto space.


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