The Days of Token Sales are Numbered: Ault Bets on Infrastructure Over Speculation

Launching a Layer 1 blockchain usually follows the same script: raise capital with a token sale, distribute supply through venture rounds or airdrops, then pray that the ecosystem catches up to valuation.

A growing list of projects are questioning whether that model is viable for the future. Regulators have increased their scrutiny of token launches, and institutions are demanding a clear economic structure as the days of readily available capital are behind us.

The change in approach is a part of a broader shift underway in crypto infrastructure, whereas speculative token distribution has been replaced with systems tied to measurable network contribution. A few L1s seem to be pioneering this new approach, specifically Ault Blockchain, a Cosmos-based, EVM-compatible L1. 

Neither through public ICO, nor broad retail token sale, the network’s native $AULT token will be distributed entirely through protocol participation and verifiable on-chain work. Other L1s should take note.

The ICO-Era Is In the Rear View

Let’s get real about ICO’s: 90% of them fail. The early generation of L1s depended on token presales to bootstrap both liquidity and community. This method was effective at raising capital, but those launches created structural imbalances that can no longer be ignored. Specifically, they created concentrated ownership, short-term speculation, and ecosystems where token activity outpaced actual utility.

A few networks are instead experimenting with new kinds of distribution models, ones centered around network operations rather than fundraising, underpinning the idea that token hype should take a backseat to results.

Ault is forging a new path for L1s to take. The network will launch with no public token sale, no venture allocation structure, and no broad airdrop campaign. Instead, emissions are scheduled over a ten-year declining curve and distributed to licensed infrastructure participants performing verifiable work. The structure resembles a hybrid between proof-of-stake economics and infrastructure licensing.

Licensed Infrastructure

Ault is designed around a licensed node system, and the network claims more than 750,000 mining node licenses are already positioned to participate at launch. Licenses act as infrastructure participation rights, rather than traditional mining hardware.

This is in clear contrast to Bitcoin mining or high-performance validator systems, because Ault’s licensed nodes can perform off-chain verifiable services. The workload is expected to firstly focus on VRF (Verifiable Random Function) randomness generation, which is crypto-speak for a cryptographic process in decentralized systems used for governance selection, oracle fairness, and application-level entropy.

In time, the network believes those same licensed nodes could expand into additional functions including oracle services, data indexing, and distributed AI workloads. The goal is to separate consensus from auxiliary network services, so validators continue securing the chain itself, while other forms of infrastructure participation support additional ecosystem functions.

Emissions Designed to Decline Over Time

The emissions model of the past won’t cut it in the new age of infrastructure-first L1s. Ault’s tokenomics diverge in critical ways from the high-emission strategies that were all too common in previous crypto cycles. With a ten-year emissions schedule, it has an annual decay of around 9–10%. The network’s first-year emissions are projected at roughly 15 billion AULT, dropping to about 6 billion within ten years. 95% of emissions are allotted to licensed node rewards, with only the remaining 5% put aside for staking incentives for validators and delegators.

That separates operational rewards from transactional revenue. Validators will earn through gas fees, priority tips, and staking commissions, but licensed nodes participate in emissions tied to service contribution.

Supporters of declining-emission systems argue they create more predictable long-term economics than perpetual inflation models. On the other hand, critics point out that success still depends heavily on whether real network demand materializes after launch.

Compliance is a Competitive Angle

The days of the hawkish enforcement by Gary Gensler’s SEC are behind us, but the $4.68 billion in fines levied against crypto companies back in 2024 has left a lasting mark on the industry.

New L1 designs place a big emphasis on compliance infrastructure, particularly as projects try to attract institutional users. In a bid to boost its focus around compliance, Ault will incorporate KYC-verified DAO participation, capped voting rights, quorum requirements, and a “No With Veto” governance mechanism. These work in concert to prevent control by an individual large holder.

In reality, many institutions no longer evaluate networks on decentralization hype or throughput metrics. These days, they are looking at the more concrete details, like governance safeguards, legal structure, and operational accountability. This is all part of increased due diligence as scrutiny has only increased.

Infrastructure Before Hype

Technically, Ault combines the Cosmos SDK with full EVM compatibility, using CometBFT consensus and targeting one-second block times. But the more interesting question may not be the underlying stack itself, which increasingly resembles the modular architecture many newer chains are adopting, but whether infrastructure-first token distribution models can succeed in an industry still largely driven by speculation.

The ecosystem applications that are forward-looking are going to be tied to decentralized finance, tokenized markets, AI analytics, and on-chain trading infrastructure. The story has been the same for many successful L1s, in that long-term adoption depends less on token mechanics and more on developers and users actually building on the network.

The bigger significance behind models like Ault lies in what they signal about the next phase of launches. The days of hyping token presales and speculative distribution are quickly moving behind us, and projects are moving toward a framework that centers around participation, infrastructure contribution, and verifiable work determining ownership.

It’s yet to be determined if this new model proves more sustainable, but it’s the beginning of a new L1 playbook.