Tokenomics
Last updated: October 4, 2024
Overview
Ambient will issue a Solana Program Library (SPL) utility token in the second half of 2024 with a maximum token supply of 1 billion.
Token distribution is split across the following allocations:
| Allocation | Percentage |
|---|---|
| Mining Rewards & Programs | 40% |
| Core Team | 20% |
| Investors | 15% |
| Ambient Network Foundation | 10% |
| Legacy Network & Ecosystem Airdrops | 10% |
| Public Sale | 5% |
The mining rewards release schedule will start with 200,000,000 in the first year. This rate will be halved every year over 10 years until the total number of reward tokens released reaches 400,000,000.
| Year | Tokens/Year | Total Tokens |
|---|---|---|
| 1 | 200,000,000 | 200,000,000 |
| 2 | 100,000,000 | 300,000,000 |
| 3 | 50,000,000 | 350,000,000 |
| 4 | 25,000,000 | 375,000,000 |
| 5 | 12,500,000 | 387,500,000 |
| 6 | 6,250,000 | 393,750,000 |
| 7 | 3,125,000 | 396,875,000 |
| 8 | 1,562,500 | 398,437,500 |
| 9 | 781,250 | 399,218,750 |
| 10 | 781,250 | 400,000,000 |
Data Reward Policy
Ambient is a global network of sensors deployed by community members to deliver hyperlocal and real-time environmental monitoring. Today this means an extensive body of air quality data, over 11 billion streams, from the tens of thousands of live sensors connected to the network. In the future this will include complementary environmental metrics and sensors to capture an increasing range of environmental data sets that impact our lives and that represent commercial opportunities for the network.
Token rewards are issued to sensor owners for the delivery of valid data streams, based on the intrinsic value of metrics captured by each sensor. The value of a stream depends on data content and reliability, as well as the commercial value derived from the markets that Ambient will sell into.
Sensor types
In order to cover all the environmental monitoring use cases identified by Ambient, we need different types of sensors. While this mix may change over time, and new categories could be created to capture demand and commercial value, taking a view of the sensors already live on our network we can categorize participating devices as follows:
| Category | Description |
|---|---|
| Outdoor | Including premium (formerly known as Type 1 like TEA’s Airqino devices) and consumer (formerly known as Type 2 like TEA’s Turtle devices) grade outdoor sensors |
| Indoor | Including premium (formerly known as Type 3 like Kaiterra’s Sensedge Mini devices) and consumer (formerly known as Type 4 like Terrabee’s IN5 devices) grade indoor sensors |
| Wearable | Specific to wearable and portable consumer (formerly known as Type 4 like Atmo’s Atmotube PRO) grade sensors |
| Commodity | Specific to data capture derived from Ambient’s smartphone application AmbiGo! |
Each category represents a total number of metrics captured, which in turn determines the maximum number of streams to be rewarded. Example metrics include:
| Category | Description |
|---|---|
| Outdoor | PM2.5, PM10, NO2, O3, CO, temperature, humidity |
| Indoor | PM2.5, PM10, TVOC, CO2, temperature, humidity |
| Wearable | PM1, PM2.5, PM10, VOC, temperature, humidity, atmospheric pressure |
| Commodity | Location and qualitative environmental data |
This categorization becomes more evident when viewed from a data sales perspective, apart from a desire to simplify. Outdoor metrics remain most valuable for global weather and mapping providers, while the majority of indoor deployments do not lead to commercial demand, though we are exploring the creation of an enterprise grade indoor category that could challenge that. Data from wearables is likely to be less reliable and of lower commercial value, while participation from smartphones represents a promotional opportunity to grow the network, create a funnel for sensor ownership, and generate a clear set of location-based revenues. This matrix allows Ambient to consider sensors deployed to date, as well as the introduction of future sensors with additional capabilities and metrics captured, enabling a dynamic balance of rewards based on the total achievable metrics by category.
In light of these categories by metric and commercial weights, and considering the 1st Year distribution:
| 1st year | |
|---|---|
| Mining Rewards | 200,000,000 |
| Annual Mining Rewards A+B+C | 126,000,000 |
| Annual Mining Rewards D | 14,000,000 |
| Network Multiplier Bonus | 50,000,000 |
| Staking Bonus | 10,000,000 |
Ambient grades participations as follows:
| Category | Sensor | Value | Daily Rewards* | Annual Rewards |
|---|---|---|---|---|
| A | Airqino | 7 | 39 | 14,244 |
| A | Turtle | 4 | 22 | 8,140 |
| B | Sensedge Mini | 1.8 | 10 | 3,663 |
| B | IN5 | 1.5 | 8 | 3,052 |
| C | Atmotube PRO | 0.7 | 4 | 1,424 |
| D | AmbiGo! | 1 | 365 |
Category D, AmbiGo!, is defined by a saturation value of 38,356 total rewards across all participants for the first year. Depending on the number of users, unused tokens from the daily mining reward pool will be allocated into a dedicated Reward Pool wallet and will be used to incentivize the existing network or ecosystem growth.
*Reward Rates
All network rewards earned are split as follows:
| Sensor Owners | 80% |
| Ambient Network Foundation | 20% |
Once Ambient launches its sensor management platform it will provide a tool allowing sensor owners to split rewards with a third party (e.g. a friend hosting the sensor).
Network Multiplier Bonus
To encourage the legacy community to migrate to Ambient, a snapshot of the legacy network will be taken on a specified date, and existing sensor owners with connected devices will be eligible for a network multiplier bonus on top of their mining rewards once they connect to the Ambient network and remain online, sending data for a defined period. Details available on this blog post.
Staking Bonus
A staking program will be announced to enhance project participation and offer returns for locking up certain amounts of tokens. Details will be released in due time.
Grid Overlay (only for Category A)
Mapping grid overlays will be based on H3 hexagons classified according to a 2-tier system:
| Tier 1 | Areas with high population density |
| Tier 2 | Rest of the world |
Tier 1 hexes are based on areas with population density estimated at 2,000+ inhabitants per square kilometer. The tier structure is instrumental in equipping as many global high-population density areas as possible with outdoor sensors. Rewards in Tier 2 will be capped at 50% in respect of Tier 1, i.e. if an Airqino reward is 39 in Tier 1, another Airqino in Tier 2 will be rewarded with 19.5
Superhexes will be created for special focus areas and incentives, with rewards funded separately as opportunities arise to contribute developments that expand the network, possibly in areas outside of Tier 1 considerations, or with new categories of sensors.
Coverage Bonus (only for Category A)
As part of the initial launch, we have also allocated additional network funds to reward the deployment of new sensors in new hexes.
| Program duration: | 1 Year |
| Observation period: | 30 Days |
| Bonus | 500 Ambient tokens |
This program applies only to new sensors, that means sensors that were never registered on the network, in a new hex that was never covered by a sensor. The sensor has to be eligible (sent 50% + 1 data streams) for a minimum of 30 days On the 31st day the sensor owner will be able to claim 500 Ambient tokens.
Sensor Reputation System
Each sensor is awarded a 100-point setup bonus the first time it is connected to the Ambient network. The performance of each sensor in the network is assessed daily and a score is assigned. If a sensor has delivered more than 50% of the expected daily data streams, it is deemed qualifying and it earns one point.
If the sensor fails to deliver more than 50% of the expected daily data streams, it is not qualifying and loses one point. In each hex, the sensor that gets installed first and streams data for at least 30 qualifying days from that hex is entitled to a 100-point Pioneer bonus. These bonuses can only be earned once in a sensor’s lifetime, even if the sensor changes location.
For a given sensor, a Local Reputation Score applies in each hex. If a sensor is moved to a new location in another hex, its Local Reputation Score in this new location starts at 0, regardless of its score in the previous hex(s). Over time, it will earn reputation points in the new hex (if it qualifies) and lose points in the old one(s).
The Global Reputation Score of a sensor, summed across all relevant hexes, is only relevant in the context of governance since voting rights are linked to a sensor’s aggregate reputation score across all hexes.
Distribution of Rewards by Hex
In each hex, the maximum category A rewards for that hex will be distributed evenly among the first 5 category A sensors present in that hex with the highest Local Reputation Score. Other outdoor sensors in that hex (if any) will be regarded as backup sensors and will not receive any rewards.
If two or more sensors of the same type have the same Local Reputation Score in a given hex, priority is attributed to the sensor that first streamed data in that hex. In each hex, sensor scores are updated daily so lead status is reassessed every day.
Data Monetization and Value Accrual
The data generated by Ambient will initially be monetized in stable/fiat currencies to make it easy for more traditional enterprise actors to purchase Ambient’s data sets. Thereafter, 100% of the (protocol) revenue will be used to buy Ambient tokens from the market before being distributed to sale channel allocations.
A Reward Pool will capture part of this value initially to be used for network expansion, data commercialization, development or R&D costs. At later stages, Ambient plans to allocate protocol revenue increasingly for grants, token burn, marketing, airdrops as well as staking programs. The exact allocation or the structure can change during the project and will be subject to governance.
To achieve its data monetization objectives, Ambient will work with several channel participants:
| Direct Network Sales | Self-service data API sales through the Ambient website |
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| Lead Introductions | Sensor (community) owner introductions resulting in the execution of a data sale, for any geography and scale of network data coverage |
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