In-depth interpretation: How Aethir promotes the rapid development of AI+Crypto

Original title: Understanding Aethir: A Comprehensive Overview

Original by Whynonah Messari

Compiler: How is the Daily Planet Daily

Key Insights

• AethirAlready witheigenLayer、ai16z、Injective, Near,LayerZero、Beam、Filecoin、Metastreet、Manta Network, Sophon,Magic EdenCompanies such as Animoca, and Return Entertainment have partnered.

• Aethir's network includes approximately 400,000 GPUs (containers) distributed across 93 locations, providing over 11 million tensor cores, and serving approximately 191.6 million users.

• In December, Aethir generated approximately $7.6 million in revenue, achieving an annual recurring revenue (ARR) of approximately $90.68 million, and a total calculation time of approximately 266.1.9 million hours.

• The core technology incorporates a virtual compute container, quality verification checker, and resource allocation indexer to support 15-minute compute sessions and provide real-time dynamic pricing.

• As of December 31, 2024, the newly launched $100 million ecosystem fund has supported 20 AI-related projects (such asHeyaNon, ARC, TopHat, etc.), providing funding, subsidies, and access to decentralized GPU resources through four batches.

• In total, around 6428.3 million VEath have been pledged, of which about 4121.2 million are in the AI pool and about 230.71 million are in the game pool.

introductory

The AI market is valued at around $184 billion in 2024 and is expected to reach approximately $826 billion by 2030, while the gaming industry is expected to reach approximately $268 billion by 2025. Both industries are increasingly reliant on GPU-intensive applications, driving the demand for high-performance computing. However, the high cost of GPUs (often over $30,000 per unit) has created an “AI wealth gap,” and large, well-funded companies dominate access to this infrastructure, making it difficult for small businesses to compete — which limits innovation and limits participation in the AI and gaming markets.

Aethir addresses these challenges through its decentralized cloud computing network, aggregating idle and underutilized GPUs into a globally shared compute pool. Aethir provides a flexible service model that allows users to access enterprise-grade GPU resources as needed by:

(i) Infrastructure as a Service (IaaS), a pay-per-use model that provides virtualized GPU instances with services and tools for developing, testing, and deploying GPU-accelerated applications, delivered through Aethir Atmosphere;

(ii) Bare metal solutions for users who want full control over their training models on dedicated infrastructure, offered through Aethir Earth. This decentralized approach reduces costs, improves accessibility, and promotes the spread of advanced computing capabilities.

backgrounds

Established in 2021, Aethir is a decentralized enterprise-grade cloud computing network that provides scalable globally distributed GPU resources for AI, gaming, and Web3 infrastructure. It provides enterprises with AI chips (such as NVIDIA H100 and NVIDIA H200) through a decentralized architecture, making performance calculations more flexible and cost-effective.

Aethir's team includes Co-founder and Chief Strategy Officer Mark Rydon, who has served at NOTA Platform, Flux Capital, and Bechtel Corporation; Daniel Wang, co-founder and CEO who was the CIO of YGG E 2, Head of International Publishing at Riot Games, and Head of Operations for Riot Games China; and Kyle, Chief Technology Officer Okamoto, former CEO of Ericsson's IoT and Edge Gravity business and chief network officer of Verizon Media; Paul Thind, chief revenue officer, was the general manager of Disney's VMK, chief operating officer of Outspark/Gamigo, co-founder and CEO of Triggerspot Inc., and also at Zynga, 20th Century Fox, Sanrio, and Trick Trick Companies such as Studios serve as advisors and advisors.

Since inception, the Aethir team has raised over $9.8 million from investors such as Framework Ventures, Merit Circle, Hashkey, Animoca Brands, Sanctor Capital, and Infinity Ventures Crypto, etc., and raised around $130 million through large-scale node sales. Aethir officially went live on the Ethereum mainnet on June 12, 2024.

technology

The Aethir network consists of three core components:

• Containers (Containers): Virtual or physical endpoints where applications execute and present. Containers earn rewards by keeping them on standby and providing computational services.

• Checkers (Checkers): Validators ensure the integrity and performance of a container by performing checks at various stages such as registration, standby, and rendering. The checker maintains Quality of Service (QoS) through continuous performance verification and is motivated by basic rewards and bonus rewards.

• Indexers (Indexers): Connect users to the right containers and match them based on multiple factors such as latency, quality of service, and cost.

These three components work together to facilitate computational sessions, which are the operating units of the Aethir network. Each session lasts 15 minutes, during which time the container performs user requests. Service fees are dynamically adjusted based on real-time demand, similar to a bidding system, and prices reflect resource availability and intensity of use.

Here's a more detailed overview of these three components.

Containers (Containers)

As a core part of the network, each container must meet the following requirements:

• It meets specific processing and graphics benchmarks, and supports high-speed and low-latency interactions.

• Always “ready”, apps and services are pre-installed, allowing immediate activation when requested.

• Verify that it meets network standards through performance checks.

The billing and use of a container is directly tied to its activity:

• Active Use (Active Use): Containers receive service rewards as they perform tasks to compensate for computational contributions during active use (such as proof of delivery and service fees).

• Standby Mode: Containers remain highly available in standby mode, ready to be deployed at any time, and receive standby rewards (such as proof of capacity).

Containers must stake ATH tokens before contributing resources. Failure to meet performance standards (i.e., providing poor service or engaging in disruptive behavior) will result in penalties (such as reducing staked tokens). Additionally, underperforming containers may face cost adjustments to reflect reduced reliability.

Checkers

The checker maintains the integrity and performance of containers within the Aethir network by performing necessary quality checks, including:

• Liveness Detection (Liveness Detection): Confirms the operating status of the container through continuous heartbeat monitoring.

• Rendering Quality Checks: Evaluate the container's performance during active rendering to ensure compliance with network standards (i.e. proof of delivery).

• Capacity Testing (Capacity Testing): Daily hardware assessments are performed to verify service readiness (i.e. proof of capacity).

Successful verification can raise scheduling priorities; failure can result in task redistribution or penalties for operators.

Checkers receive two types of rewards:

• Basic rewards: distributed daily based on mission completion.

• Bonus rewards: distributed quarterly to inspire outstanding performance.

These rewards, commonly known as “checker node emissions,” are distributed as compensation in the form of ATH tokens. Notably, the checker doesn't require staking ATH tokens like edge nodes and IDC nodes. However, depending on the severity of the violation, checkers that fail to meet the quality benchmarks will face penalties, including a temporary ban or permanent disqualification.

Additionally, with MetaStreet's Yield Pass (available on the NoDeFi platform), the checker can now:

• Unlock liquidity and gain immediate value through tokenizing and trading future node emissions;

• Borrow money using nodes as collateral, and there is no need to sell the tokens you hold;

• Maximize returns through staking and liquidity provision.

Participants as checkers need to hold a Checker Node License (Checker Node License), a type of ERC-721 NFT that allows operators to independently deploy nodes or delegate tasks using virtual or physical settings. The Checker Node license was first offered through a strategic partner whitelist sale on March 18, 2024, followed by a public sale on March 20, 2024. The public sale has now ended, and the license is expected to be traded on the secondary market.

To operate a checker node, the operator needs to install the Checker Node Client (Checker Node Client), a software application used to run and manage the node. For more information on previous Checker Node sales, clickhere。

Indexers

The indexer acts as a bridge between on-chain settlement and off-chain data processing, supporting enterprise workloads. They connect users to the most suitable containers, ensuring a “second start” service with minimal latency and an optimized experience. Scheduling is based on several factors:

• The state of the container (that is, on standby).

• Whether the container comes with the app pre-installed.

• Hardware and network compatibility.

• Low latency at the user's location.

• The cost of the service does not exceed the requested budget.

Prioritize the lowest cost, best user experience, or highest review score. Additionally, indexers are randomly selected to promote decentralization, reduce the risk of fraud, and avoid delays caused by protocol complexity.

Compute Providers

While compute providers aren't clearly defined core components, they are critical to the ecosystem — they provide physical GPU hardware, which is then used to create containers that perform computational tasks within the network. Users can also contribute resources by purchasing an Aethir Edge device, an edge computing hardware device equipped with a GPU that connects directly to the network.

To participate, the calculation provider must stake ATH tokens, and the amount staked depends on several factors (i.e. the global average staking factor, GPU specifications (K value), and the number of emission tokens last month). Staking is mandatory throughout the operation, configuration changes require re-staking, and a 180-day unlock period when unstaking.

Compute providers receive balanced rewards through the following mechanism:

• Proof of Capacity (PoC): Rewards are distributed daily based on GPU availability, uptime, and the container's K-value.

• Proof of Delivery (PoD): Earn rewards for completing computational tasks based on task complexity and rendering time.

• Edge Device Rewards (Edge Device Rewards): Calculated based on emission plans and affected by 5% network fees.

On the buyer's side, the service fee is settled in fiat currency and paid in ATH tokens, and the platform will deduct 20% of the platform fee. The Aethir platform sets a benchmark unified price for containers, based on the region and specifications where the container is located, and provides different pricing structures for Reserve (Reserve) and On-Demand (On-Demand) models.

Furthermore, punitive mechanisms (including cuts) ensure accountability through forfeiture of rewards, which in severe cases will result in loss of pledge guarantees and removal from the network in case of downtime or performance failure. For more information on the above, click here.

Comprehensive Overview

Although the Aethir network and computing providers form the backbone of the infrastructure, they operate within a broader ecosystem with three additional key components: (i) computing buyers and players, who use the network's computing power; (ii) a treasury that manages network fees and allocates ATH tokens for protocol development and growth; and (iii) a settlement layer that records transactions and distributes ATH rewards. Here's an example of how they work together:

• A company submits a request for computing resources to Aethir, specifying GPU requirements, latency expectations, budget, and duration of cloud gaming services.

• The indexer matches requests to appropriate containers based on performance, location, and service cost criteria.

• The assigned container performs real-time rendering tasks, streaming game graphics to player devices with minimal latency.

• The inspector monitors the container's performance, verifies specifications, rendering quality, and ensures compliance with Aethir's standards.

• Players enjoy a seamless gaming experience through the container's computing resources.

• Compute providers (resource owners) provide GPUs, contribute computing power to the Aethir network, and receive ATH rewards.

• The company pays for services, and the Aethir treasury processes these fees, allocates ATH rewards to resource owners, and pays the agreed fees.

• The blockchain settlement layer records all transactions to ensure transparency and accountability, while recording Proof of Capacity (Proof of Capacity) and Proof of Delivery (Proof of Delivery) data.

Through its technology and systems, Aethir offers two different products designed to meet the needs of AI applications and games:

• Aethir Earth: A bare-metal native GPU resource for computationally intensive tasks such as AI model training and machine learning, providing high performance scalability, reliability, and optimized performance without the overhead of virtualization.

• Aethir Atmosphere: Decentralized rendering container for real-time, high-quality cloud gaming experiences, allowing low latency, scalability, and seamless gameplay across devices.

ATH token

Token features

According to the project's documentation, ATH runs on Ethereum as an ERC-20 token and as an ArberC-20 token on Arbitrum. It performs several key functions within the Aethir network, including:

1. Pay for services on the Aethir network (for example, GPU computing for AI applications, cloud gaming, and virtualized computing tasks).

2. Staking supports network operations and earns staking rewards.

• Compute providers and containers earn rewards through Proof of Capacity (PoC) and Proof of Delivery (PoD) mechanisms, and these rewards are distributed through Ethereum.

• Checkers receive basic rewards and bonus rewards based on mission performance, while Aethir Edge devices receive emissions-based rewards. All checkers and Edge rewards are distributed through Arbitrum.

• Token holders can stake ATH tokens in AI or game pools to earn regular rewards. All rewards are distributed via Ethereum, and the game pool also provides additional VeCarv tokens through partnerships with the CARV protocol.

Token economics

The chart above shows the distribution of ATH tokens (as of December 31, 2024, ATH's total valuation is approximately $2.94 billion, and the ATH price is approximately $0.07):

• Checker and calculation provider: 50.00% (1.100 billion ATH, approximately $1.47 billion)

• Team: 12.50% (525 million ATH, approximately $367.5 million)

• Ecosystems: 15.00% (630 million ATH, approximately $441 million)

• Investors: 11.50% (483 million ATH, approximately $338.1 million)

• Airdrop: 6.00% (252 million ATH, approximately $176.4 million): The airdrop will be carried out over three seasons to reward long-term ecosystem participants, with the first and second seasons allocating 1.50% each, and the third season allocating 3.00%.

• Advisors: 5.00% (210 million ATH, approximately $147 million)

Notably, Aethir's calculation rewards emissions using an attenuation function to balance early-stage start-up with long-term sustainability to ensure that late-stage participants are also motivated. Detailed information on specific emissions will be released later.

Token ownership

The following are the parties' ownership arrangements:

• Checker and compute providers: Checker uses a four-year linear attribution plan tied to performance, while Edge and enterprise computing providers follow specific reward attribution schedules.

• Team: 18 months of Cliff, followed by 36 months of linear ownership.

• Ecosystem: 50.00% was released at the time of the token generation event, and the rest was linearly attributed for 24 months. The DAO treasury follows a 48-month linear ownership plan.

• Investors: 12 months of cliffs, followed by 24 months of linear ownership.

• Airdrop: 25.00% released when the token was generated; 25.00% was released 8 months later; the remaining 50.00% was released 8 months later.

governing

According to Aethir's latest roadmap, Aethir's governance framework is scheduled to be implemented in the fourth quarter of 2024 in four stages:

• Development phase: Establishing core elements (such as smart contracts, voting mechanisms, and staking functions).

• Community education and engagement: Conduct workshops and training courses to prepare stakeholders for participation.

• Beta testing: Launch a trial version of the governance system to selected users to test functionality and provide feedback.

• Official release: The final governance system will be deployed after adjustments.

Specifically, governance will consist of the following two parts: 1. A committee, which manages the day-to-day operation of the ecosystem; 2. A foundation board of directors: overseeing major initiatives (such as decisions relating to the treasury and important governance decisions).

Two years after the start of governance, ATH token holders holding more than 5.00% of the circulating token supply will be able to directly propose changes and bypass the committee's support. The Committee will be composed of the following representatives:

• Compute providers: Two representatives (Edge and Enterprise) are elected based on their contributions to the ecosystem.

• Checker: Elected based on its contribution to the ecosystem.

• ATH token holders: All ATH token holders are eligible to vote, and staked ATH (vEATH) will grant enhanced governance privileges and 1.5 times more voting rights.

• Indexer representative: Elected by a governance vote of holders who have pledged ATH tokens. The indexer will serve a term of three years, and there will be a by-election unless removed due to a governance vote, insolvency, non-compliance, or operational failure. The indexer cannot simultaneously act as a computing provider or checker, and is responsible for managing calculation allocations through monitoring resource usage and service level agreements, and reporting resource requirements to the committee and foundation board.

• Foundation representative

In addition to the Commission, there is an additional layer of security, the community-elected Multi-Signature Group (Sentinel), which is regularly updated through community governance votes. Their main responsibilities include: 1. Rejecting changes to the statutes or proposals, particularly those deemed harmful; 2. Publish the reasons for any rejection to ensure transparency.

Any veto would require approval by the Commission. However, 24 months after the launch of the governance mechanism, the coverage mechanism will be in place, and more than 75.00% of the community vote will be able to overturn the committee's veto. Each proposal goes through the following stages:

• Temperature check: Preliminary stage to assess community interest in the proposal.

• Debate: A formal discussion to refine a proposal and resolve issues.

• Preparation for implementation: Prepare necessary on-chain changes based on the content of the proposal.

• Decision: Final on-chain voting to decide whether to implement the proposal.

More details about the quorum, types of proposals, types of proposals, and amendments can be found athereCheck it out.

Aethir Ecological Status

Key projects

Infrastructure:

• eigenLayer: eigenLayer is a blockchain infrastructure that supports restacking and collaborates with Aethir to enable ATH holders to stake and delegate on EigenLayer, thereby simplifying GPU provider access and increasing staking rewards.

• Near: The NEAR Protocol is a scalable, developer-friendly public chain that collaborates with Aethir as part of the Delphi Labs AI Accelerator Program, which provides GPU resources to support participating projects.

• Injective: Injective is a Layer 1 optimized for DeFi applications, collaborated with Aethir to create the first tokenized marketplace for GPU computing resources.

• LayerZero: A full-chain interoperability protocol, partnering with Aethir to provide multi-chain capabilities by integrating their networks.

• Axelar: A cross-chain communication network that securely transmits messages and tokens. Aethir streamlines ATH token bridging between ETH and Arbitrum by integrating Axelar's Cross-Chain Token Service (ITS) and Squid platform.

• Auros: A company that does market making and algorithmic trading, which will provide liquidity for ATH tokens.

• Filecoin: A decentralized storage provider that has partnered with Aethir to integrate GPU rental services for its storage provider, support on-demand data archiving, and create a complete decentralized computing and storage solution.

• Manta Network: A modular Ethereum Layer 2 that integrates decentralized GPU resources in partnership with Aethir.

AI:

• TensorOpera: An AI platform that integrates Aethir's distributed GPUs into its Nexus AI platform, providing competitive pricing for model deployment, fine-tuning, and training.

• AI16z: An AI agent framework that works with Aethir to provide ElizaOS developers with a simplified path to GPU grant applications.

• Ecosystem fund projects:

• Batch 1: Includes TopHat (a codeless AI agent launch platform) and Capx AI (a platform that allows users to build, own, and trade AI agents).

• Batch 2: Includes ARC (AI Arena, an AI agent launch platform) and bitGPT (a front-end interface for on-chain transactions and education).

• Batch 3: Includes iAgent (an AI training platform for players to train AI agents) and MyShell (an AI consumer layer that allows developers to easily build, share, and own AI applications).

• Batch 4: Includes HeyaNon (a DeFAI tool) and dFusion AI (a decentralized platform for collecting high-quality data), etc.

• Mira: An AI verification platform that provides trustless verification of AI output, partnered with Aethir to combine its trustless verification technology with Aethir's decentralized GPU network to reduce the AI error rate from 30% to 5%.

• OpenLedger: A platform that provides a data blockchain for AI, partnering with Aethir to use its decentralized GPU network.

Games:

• Magic Eden: An NFT trading platform that leverages Aethir's GPU power to support gaming partners while serving as the NFT platform of choice for Aethir's gaming customers.

• Return Entertainment: A cloud-based gaming platform focused on immersive experiences, using Aethir's GPU network to power its cloud gaming platform, which is located at Samsung's cloud video gaming hub.

• Immutable: A Web3 Layer 2 platform focusing on NFT and blockchain games, backed by Ethereum, using Aethir to provide GPU cloud infrastructure to help game developers and publishers build and publish games in the Immutable ecosystem.

• Sequence: A Web3 game development platform that uses Aethir to provide scalable GPU cloud infrastructure, support features such as NFTs and in-game marketplaces, and provide a seamless Web3 gaming experience.

• Sophon: A zkSync superchain focused on AI, gaming, and entertainment, integrating Aethir's decentralized GPU cloud. The two networks have enhanced decentralization through a common exchange of nodes.

• Xsolla: A global video game commercial company that has partnered with Aethir to provide decentralized GPU infrastructure support for its pay-as-you-go (PAYG) cloud gaming platform.

• SuperScale: A game growth engine and analytics platform that partners with Aethir to support mobile gaming through case studies of its user acquisition and downstream metrics.

• MetaGravity: A gaming infrastructure company that leverages Aethir's decentralized GPU cloud to support its HyperScale engine.

Strategic Initiatives

$100 million ecosystem fund

In October 2024, Aethir launched a $100 million ecosystem fund to support innovation in AI and gaming in stages. The first phase launched the Aethir Catalyst Program, providing $10 million in XAI grants and $10 million in XPLA grants. The fund provides the following support: (i) financial support, ranging from $5,000 to $200,000 (paid in ATH tokens) to help AI and gaming projects launch and maintain operations; (ii) up to 35% off Aethir's GPU computing services for contracts of six months or more; and (iii) access to Aethir's hardware ecosystem (such as Aethir Edge).

Applications for grants and grants are conditional on using the Aethir platform or collaborating through token distribution. The Aethir Grant Committee will evaluate applications based on computing needs, user appeal, revenue metrics, and project innovation. Applicants can participate here.

Since the fund's inception, 20 projects with AI agents as the core have passed four batches of review; see the Key Projects section for details.

Tactical calculation plan

Past grants include Tactical Compute (TACOM), a $40 million AI computing initiative with Beam Foundation and MetaStreet that uses Aethir's GPU network to address the shortage of computing resources and support AI-crypto projects through hardware financing, yield arbitrage, and network guidance.

other

Additionally, Aethir has partnered with the Abu Dhabi Blockchain Center (Abu Dhabi), a global innovation hub aimed at expanding its influence and support in the Middle East and North Africa (MENA) region.

Network Metrics

On the supply side, as of December 31, 2024, the Aethir network consists of approximately 400,000 GPUs (containers) distributed across 93 locations, providing the computing power of over 11 million tensor cores. The current infrastructure supports monthly computing power to serve approximately 193.7 million people.

On the demand side, monthly revenue in December 2024 reached approximately USD 7.6 million, and the annualized recurring revenue (ARR) was approximately USD 90.68 million, an increase of about 46.82% compared to USD 5.18 million in November, and the total number of computing hours reached about 266.1.9 million hours. A comparison of these metrics with other DePin projects can be found in Messari's 2024 DePin status report.

As for on-chain metrics, as of the end of December, AI pool staked vEath reached about 4121.2 million, while game pool staked at about 230.71 million, showing a monthly increase of about 2.64% and a decrease of about 0.31%, respectively, bringing the total amount of staked in all pools to over $1.5 billion. More metrics (such as average annualized return, total trading volume, etc.) can be viewed in this dashboard.

roadmap

On August 22, 2024, Aethir published a comprehensive six-month roadmap to supplement its existing documentation. Here's what's merged:

Q3/Q4 2024:

• Aethir Cloud Portal: Streamline the onboarding process for enterprise customers, provide seamless access to Aethir's GPU infrastructure, and simplify ATH token payment services.

• Sophon migration: Expansion to the Sophon blockchain to improve ATH token liquidity and expand staking opportunities.

• Aethir Governance Launched: Introducing a Decentralized Governance Model

• Ecosystem Fund and Aethir Incubator launch: (i) launch a fund to support developers and builders within the Aethir ecosystem; (ii) launch an incubator program to support early projects in AI, gaming, and computing infrastructure.

2025:

• AI model as a service (PaaS): Launch a platform-as-a-service model to provide developers with a pre-configured AI/ML technology stack.

• Game Showcase Portal: A portal showcasing game projects built on Aethir infrastructure.

• Extend Aethir Edge functionality: Introduce AI inference capabilities and cloud telephony use cases to enhance AI-enabled agents.

• Aethir Air: Adding native SDKs for Windows and iOS to enhance developer tools.

• Aethir Earth: Launched an open API to manage bare metal machines.

summed

Aethir provides distributed cloud infrastructure for AI and gaming by aggregating idle and underutilized GPUs into a global pool of shared computing resources. It provides enterprise-grade performance at a lower cost through two main products: (i) Aethir Earth, which provides native bare metal GPU resources to support compute-intensive workloads; and (ii) Aethir Atmosphere, which supports real-time cloud gaming through decentralized rendering containers. The platform integrates containers, checkers, and indexers to ensure the quality and efficiency of resource allocation by computing resource providers.

Supported by strategic partnerships, Aethir empowers developers and businesses through its $100 million ecosystem fund. Specifically, Aethir has helped 20 AI agent-focused projects in four batches and provided developers of the ai16z Eliza proxy framework with a simplified path to access GPU funding.

As of December 31, 2024, Aethir's network consists of approximately 400,000 GPUs (containers) distributed across 93 global locations, with monthly revenue of approximately $7.6 million in December 2024, an increase of approximately 46.82% over November's $5.18 million.

Looking ahead, Aethir plans to expand governance mechanisms, launch ecosystem incubators, and enhance infrastructure with new features, including better support for developers and businesses that rely on GPU-driven solutions.