Arweave Launches AO Mainnet, Unlocks Token Transfers

Decentralized storage project Arweave has launched the mainnet of its computing platform, AO, after a year-long testnet phase. Previously minted AO tokens will now become transferable, marking the next phase of the network’s rollout.

Nicknamed as a “hyperparallel computer,” AO introduces a distributed computing environment powered by Arweave’s immutable data storage. “Arweave laid the groundwork by providing permanent, decentralized, and uncensorable data storage,” said Arweave founder Sam Williams.

AO’s 21 million token supply follows a Bitcoin-like fair launch model, with 36% allocated to AR holders and 64% for ecosystem incentives. Users who pre-bridged assets like DAI and stETH, totaling $364 million, can now claim their rewards.

The AO token’s primary function is to secure message passing by rewarding attestations, a key part of its decentralized AI coordination model. The mainnet aims to support new dApps and on-chain AI agents, driving further demand for Arweave’s storage services.

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Story Protocol Launches IP Token on its Layer 1 Blockchain

Story Protocol launched its $IP token on its sovereign Layer 1 blockchain, aiming to reinvent digital ownership and licensing. Built with the Cosmos SDK, it enables recursive licensing, decentralized staking, and AI monetization of intellectual property. The network avoids Ethereum congestion by adopting a graph-based system tailored for complex IP relationships.

The $IP token will govern network security, transaction fees, and governance, with 58.4% allocated to the community. Staking rewards won’t begin until March 2, ensuring fair participation rather than early insider benefits. "We want to do for IP what Bitcoin did for money," said co-founder Jason Zhao, setting up Story as the foundation of a blockchain-native creative economy.

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BTC Activity at Yearly Low, But Holders Keep Accumulating

Bitcoin network activity has hit a 12-month low, with daily transactions dropping 53% to 346,000, according to CryptoQuant. The decline in Runes Protocol usage, a system for issuing fungible tokens on Bitcoin, is seen as a major factor behind the slowdown. Bitcoin’s mempool backlog collapsed by 99%, signaling a sharp drop in transaction demand.

Despite this, long-term holders are accumulating BTC at an accelerating pace, reducing sell-side pressure. Historically, such behavior has preceded Bitcoin price rallies, reinforcing its role as a store-of-value asset. "Historically, this signals strong confidence and often precedes rallies," CryptoQuant noted, suggesting market strength despite low on-chain activity.

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Coinbase CEO Pitches Blockchain for the U.S. Treasury

Elon Musk’s Department of Government Efficiency (DOGE) has saved $36.7 billion, exposing wasteful federal spending and prompting calls for blockchain transparency. "Great progress DOGE," said Coinbase CEO Brian Armstrong, advocating for a blockchain-based U.S. Treasury to track government funds. The savings represent just 1.8% of Musk’s goal, with further cuts expected.

DOGE also identified $100 billion in suspicious entitlement payments, with Musk estimating $50 billion per year in fraudulent claims. The U.S. Treasury agreed to update audit protocols, requiring all federal payments to include metadata for tracking. "This is utterly insane and must be addressed immediately," Musk said, as efforts to modernize government spending accelerated.

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Data of the Day

Polymarket reached a new milestone in January, with 450,000 monthly active traders, a 91% increase from October 2024. Despite declining trading volume, interest remains strong, with open interest stabilizing at $100 million post-election.

The Super Bowl, NBA Championship, and Champions League have fueled Polymarket’s expansion beyond political markets. Amid ongoing CFTC regulatory scrutiny, speculation is rising about a potential Polymarket token launch, though no official confirmation has been made.

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More Breaking News

• BlackRock has increased its ownership of Strategy (MSTR) to 5%, boosting its stake as the company's perpetual preferred stock gains momentum.
• The SEC has delayed its decision on allowing options trading for BlackRock’s Ethereum ETF until April 9, 2025.
• Kanye West denied launching a cryptocurrency, stating that "coins prey on fans," causing memecoins associated with him to plummet by over 65%.
• A Florida state senator has filed a bill proposing that the state invest in Bitcoin, allowing up to 10% of certain public funds to be allocated to digital assets.
• Sony’s blockchain platform Soneium has debuted its first music NFT collection in collaboration with crypto record label Coop Records, with fair profit distribution.
• Gemini crypto exchange is reportedly considering an IPO, following a trend of crypto firms exploring public listings amid improving market sentiment.
• Pump.fun co-founder Alon Cohen argued that most altcoins are just memecoins with VC backing, responding to criticism that Pump disrupted the altcoin cycle.

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