I. Introduction
The Permaweb Index (PI) token goes live on Pi Day (3.14), marking a major shift in how crypto projects can be funded. Traditionally, venture capital firms and angel investors have had an unfair advantage, acquiring discounted tokens before public availability. These insiders often sell their holdings at price peaks, “dumping” on retail investors and creating volatility and downside risk.
II. What is the Permaweb Index?
The Permaweb Index introduces a new mechanism that provides fair opportunities for the community to support projects while enabling builders to secure development funding. The PI token acts as a default means of exchange on the permaweb, offering broad exposure to the entire ecosystem without requiring active management. PI represents ownership of key permaweb assets:
- 33.3% $AR
- 33.3% $AO
- 33.3% Fair launch projects
How do builders benefit from the Permaweb Index?
Developers can fund their projects through support from the ecosystem, the people who actually use their platforms, rather than relying on venture capital. Founding teams have full control over how they allocate the yield earned from PI. This allows them to use their yield to fund development and reward users if they choose.
How do permaweb users benefit from the Permaweb Index?
Users support core Permaweb infrastructure (AR, AO) while maintaining control over which ecosystem projects they back. On the AO Mint page, users can decide how much of their PI they want to allocate to specific projects. This creates diversification and flexibility. There are no vesting periods or lockups, so allocations can be withdrawn at any time.
III. Why Fair Launch over VC funding?
Building a blockchain-based project is capital-intensive. Early funding supports technical development, business growth, and go-to-market efforts. While venture capital may seem like the easier route, it often leads to long-term challenges.
One common complaint in crypto is projects “dumping on retail” after their ICOs. This happens because early investors acquire tokens at a steep discount, sometimes just a fraction of the public price. These insiders often have a token lock-up period, a set duration where they are restricted from selling their tokens. While lockups prevent immediate sell-offs, they create artificial scarcity that inflates token prices. Once the lockup expires, VCs and insiders can sell their holdings, crashing the market and leaving retail investors at a loss.
This is why the AO token took a different approach: a fair launch with no insider allocations or vesting periods. Funding comes from users staking their yield-bearing assets (stETH, DAI) into the ecosystem. More details on AO tokenomics can be found here.
The VC funding model for crypto projects is no longer sustainable. Token lock-ups artificially drive up prices, making tokens appear more valuable than they actually are. When insiders cash out, retail investors are left holding the bag, leading to distrust and discouraging real adoption.
A fair launch model ensures that funding flows directly to builders while giving users and retail investors a fair chance to support projects they actually use.
IV. Which projects are in the Permaweb Index?
The first set of projects participating in the fair launch is listed below, with more details on how to participate coming soon.
| Project | Description |
|---|---|
| Apus Network | Decentralized AI platform utilizing AO and Arweave for deterministic GPU computing. |
| ar.io | The first permanent cloud network providing data storage and web hosting. |
| Basejump | Scalable, permissionless AI gaming substrate. |
| Bazar | Digital content marketplace built on AO’s Universal Content Marketplace (UCM), a decentralized order book for creators. |
| Botega | AI-powered DEX leveraging autonomous agents for optimized liquidity and advanced order execution. |
| Protocol.Land | Decentralized source control platform for building and deploying applications and protocols. |
V. How the Permaweb Index rolls out
As announced by Autonomous Finance, the Permaweb Index will launch in phases. The PI token will go live on 3.14, but the ability to create new fair launch projects will follow soon after. The primary focus is on network stability and security, as multiple moving parts must work together to make the Permaweb Index possible. The team will provide more details on the fair launch process for adding new projects to the index.
VI. Conclusion
The launch of the Permaweb Index represents a fundamental shift in how crypto projects are funded, moving away from VC dominance and toward a community-driven, fair launch model. This approach empowers builders and users alike, ensuring sustainable growth for the permaweb ecosystem.
Resources
AO
Autonomous Finance
Permaweb Index Projects
This article is not financial advice. Please do your own research.