Why the AVM Token?

The AVM token is the economic foundation that transforms AVM from a centralized service into a truly decentralized, permissionless compute protocol. Without the token, AVM would remain dependent on traditional infrastructure and centralized control, limiting its potential to become the global backbone for AI agent execution.

The Problem with Centralized Compute

Current AI compute solutions suffer from:

  • Single points of failure: Centralized providers can go offline or restrict access
  • Geographic limitations: Infrastructure concentrated in specific regions
  • Censorship risk: Centralized entities can block or limit certain types of computation
  • High costs: Monopolistic pricing without competitive pressure
  • Scaling bottlenecks: Limited by single provider’s capacity

The AVM Solution

The AVM token enables a decentralized compute economy where:

Global Network Effects

  • Incentivizes node operators worldwide to contribute compute resources
  • Creates a self-expanding network that grows with demand
  • Eliminates geographic and regulatory single points of failure

Economic Alignment

  • Node operators earn tokens for providing compute services
  • Users pay with tokens for execution, creating sustainable demand
  • Network effects increase token value as more nodes and users join

Decentralized Governance

  • Token holders govern protocol parameters and upgrades
  • Community-driven development ensures no single entity controls the network
  • Transparent, on-chain decision making

Self-Sustaining Growth

  • Transaction fees fund network expansion and development
  • Node incentives bootstrap initial infrastructure
  • Transition to fee-based economics creates long-term sustainability

Token as Infrastructure

The AVM token isn’t just a payment mechanism, it’s the coordination layer that enables:

  1. Resource Discovery: Nodes advertise capacity and pricing
  2. Quality Assurance: Staking mechanisms ensure reliable service
  3. Economic Incentives: Rewards align individual and network interests
  4. Decentralized Operations: No central authority required for network function