What is ArbDoge AI?
Arbdoge is a cryptocurrency project that started when no one expected it, by making a second airdrop to the recipients of the Arbitrum airdrop and distributing their tokens to the community. Although this project seemed like a scam to many at first, it suddenly became popular after people got to know it and destroyed this perception. Arbdoge’s popularity was not a coincidence, but simply because it took some sensible strategic steps.
Step 1: Community-only monetary policy with no team share
Arbdoge airdropped 100% of its first token, AIDOGE, to the community with no team share. This fair distribution and no pay for the team was the first step for Arbdoge to get all the attention.
Step 2: We are all Neo
The Arbdoge team announced from the day it emerged, they will strive forever to protect the interests of those on the ecosystem. On this effect, ArbDoge has been charged with the mission that everyone around is Neo, that is, an Arbdoge supporter. In response, the community responded with “We are all Neo” or “thanks Neo”, thus establishing a meaningful energy bond between the individual people and the project.
In this case, it’s a second step for Arbdoge to be a strong community project and have loyal users and attention.
Step 3: Deflationary Monetary Policy
Normally, the supply of cryptocurrencies tends to increase starting from zero or at a certain point. This is very useful in terms of sustainability. However, the ArbDoge team did something unconventional on AIDOGE by distributing the entire supply at once, starting a movement in the direction of supply reduction. In other words, instead of increasing or remaining constant in AIDOGE, the supply decreases in a hyper-deflationary structure. In this case, it attracts attention as it triggers the thought that its price will increase.
AIDOGE achieves this with the help of 15% commission on DEX transactions. In 15% commission, 1% directly burns, 3% to development, 2% to liquidity providers, 3% to Lucky Drop, 2% to funds, 1% to AIDOGE stakers, 3% to AICODE goes to the stakers.
AIDOGE knowing that people will avoid 15% tax, so they designed a game called Lucky Drop to encourage the 15% tax cut in the first place, which entitles you to tickets equal to the amount of AIDOGE you get from DEX and you will have a chance to win-get Arbitrum as a reward. Therefore, 15% tax deduction was working in the purchases made by those who wanted to try their luck. However, since a large majority who did not want to take their chances were trading on CEX exchanges, the ArbDoge team launched their second token, AICODE.
Step 4: AICODE
AICODE is a new token that is the main fuel of the Arbdoge ecosystem. Unlike AIDOGE, there is no tax fee and its supply is limited 21 million.
AICODE can be produced in two ways. The first is the mining system where you can directly burn your AIDOGEs and get AICODE in return. 60% of the total supply of 21 million AICODEs is reserved for Burning Mining.
The second production method of AICODE is Trading Mining. In this method, when you buy AIDOGE on Camelot V2 for more than $500 excluding fee deduction, an equation is created based on the total amount received per day and the amount you receive. At the end of the day, you will receive a share from the Trading Mining reward distributed that day according to your rate. 40% of the supply is reserved for Trading Mining.
Basically, due to these 4 different features, Arbdoge has managed to attract the attention of the market.
The Most Important Question: What do we need AICODE while we have AIDOGE?
It attracted attention on Arbdoge, but it created question marks in the minds of some users. Let’s try to explain the above basic question for them right away.
The Arbdoge team has designed 2 tokens so that AIDOGE’s deflationary structure can work and the tax system and ecosystem can be sustainable. In the scenario where there is no AICODE, since the AIDOGEs will operate on CEXs without taxes, there will be no supply burn and 15% distribution on the ecosystem will not be possible. That’s why the Arbdoge team is trying to circulate your AIDOGEs on supporting DEXs and to make the system work as desired. This is the main reason why there are 2 different tokens.
Second Most Important Question: Which token makes more sense to be on?
The purpose of AIDOGE is to make the ecosystem sustainable, to win a staking award and to produce AICODE. AICODE will be the fuel we will use in places to be built on the ecosystem. Although the purposes of the two tokens are different from each other, they are completely interconnected and often the price movements will be correlated because;
Those who want to produce AICODE will either have to buy AIDOGE or they will have to burn AIDOGE. In both scenarios, it positively affects the AIDOGE price. When the price of AIDOGEs increases, the trading volume increases too, so AI CODE stakers start to receive more rewards and AICODE gets its share of the price increase. Therefore, even if these 2 tokens serve different purposes and do not have a direct conversion, they will be in constant correlation. In addition, the Arbdoge team stated that they will try to protect the interests of both token holders equally.
An In-Depth Look at AIDOGE’s Monetary Policy
AIDOGE is a hyper-deflationary currency and therefore its supply is drastically decreasing day by day. The total supply started at 21 trillion and in just 19 days, 7% of the total supply was burned.
In addition, in just 19 days, it reached 138 thousand holders and reached more than 6 million transfers. In this context, we see that AIDOGE’s monetary policy attracts a big audience.
In addition, the hyper-deflationary nature of AIDOGE encourages people to keep it, while the very good staking rewards make it even more encouraging to keep it.
An In-Depth Look at AICODE’s Monetary Policy
AICODE is an inflationary asset, but its inflation tends to decrease over time. Therefore, in the first days of AICODE, we can warn for a price decrease until the stabilization period.
In the table above, we see the oscillation of AICODE and the monthly Inflation calculation. The highest inflation belongs to this period as AICODE is injected with 8x reward rate for the first 2 months and supply starts from zero. At the end of 2 months, the first halving takes place, the reward drops to 4x rate and monthly inflation to 25%. At the end of 5 months, another reward decrease occurs, reducing the monthly reward amount to 1x and the inflation to 3.5%.
When we look at inflation on an annual basis, AICODE’s inflation falls to 34% after 1 year. After 2 years, it starts to decrease below 25%. In general, the entire supply is injected in 10 years.
We have to mention here that AICODE’s inflation is not the only factor affecting the price, but it is the most important factor in the early periods. As the Arbdoge team knew this, they allocated a significant portion of AIDOGE’s transaction taxes to AICODE staking rewards so that AICODE would not be affected by inflation too much. Thus, the selling pressure was tried to be reduced a little more. However, for the first 1–5 months, the price of AICODE may have unusual movements.
ArbDoge and Arbitrum Link
Arbdoge is built on the Arbitrum ecosystem which have to 70% capitulation in all Layer 2s. Arbitrum is the Layer 2 platform, which is both the most used now, its future is very clear, relatively fast, high dapp and low fee.
The fact that ArbDoge is on this ecosystem may have great potential for the future in terms of connecting with many dapps, cheap and fast. In addition, if the popularity of the network continues, the injection of money in projects on this network will increase even more.
Although there are many projects that have imiated Arbdoge, there’s currently no other project has been announced on the Arbitrum network with as bright an idea as Arbdoge. In this respect, Arbdoge is a first and if he can use it well, he can go to better points.
We can say that Arbdoge has made good progress until the day we write these lines. The most fundamental factor for its success in the future will be the rate of use of AICODE. If AICODEs can interact with many dapps, the system ArbDoge designed will continue to run smoothly. In this case, the burning of AIDOGE supply will continue, the price will be triggered and the interest in the project will continue to increase.