Imagine a platform where Artificial Intelligence meets innovation in the crypto space. Well, PAAL.AI does exactly that!
PAAL.AI, also known by the market ticker PAAL, is, according to their website, a robust AI ecosystem that leverages advanced Artificial Intelligence and Machine Learning technologies.
At its core PAAL aims to enable users to create personalised AI and deploy it across multiple platforms such as Telegram or Discord.
On top of this, it also offers AI solutions for larger businesses and projects and is perhaps best known for its Ethereum AI chatbot.
But how does it all work? Today we find out!
What is PAAL AI?
Launched in 2023, PAAL.AI was founded by Simon, who acts as the CEO, and a man known as David.
Additionally, Peter and Hanley, form part of the core team at PAAL.
David is described as the co-founder of PAAL, while Peter is heading the technologies division, and Hanley is the core cognitive architect.
PAAL.AI is currently referred to mostly as Ethereum’s chatbot, but it does offer a lot more than just being a chatbot on Ethereum.
While yes, their adaptive chatbot may be their most recognisable product so far, PAAL also offers custom AI training, AI as a service through their custom datasets and APIs, and Multimodal AI which is PAAL’s advanced algorithm for processing text, images, audio, and video.
They also offer white-label solutions, such as helping businesses create brand-aligned AI solutions using PAALs technology.
But, how does it all work?
How does PAAL AI work?
PAAL lives on the Ethereum network as an ERC 20 token.
To give a quick run-down, an ERC-20 token is a type of standardised token blueprint that ensures compatibility with the Ethereum network.
This means PAAL is fully compatible with Ethereum, and any Ethereum-based platforms or projects.
For a company like PAAL, it makes sense to be compatible with crypto’s second-largest cryptocurrency, Ethereum, and the largest crypto network. This compatibility allows PAAL to achieve widespread adoption among both consumers and developers, providing the company with an already established, active, and engaged network of users to offer its services to, rather than trying to encourage people into joining their own network.
As PAAL is an ERC 20 token, this means it is a Proof-of-Stake based project.
Just to ensure we’re all on the same page, Proof-of-Stake is a type of consensus algorithm in blockchain networks where validators are chosen to verify transactions semi-randomly based on the amount of cryptocurrency they hold and are willing to stake, meaning deposit as collateral.
Generally speaking, Proof-of-Stake is more environmentally friendly than Bitcoin’s more famous Proof-of-Work consensus mechanism due to its lower energy consumption thanks to having no reliance on the power-intensive mining processes that come with Proof-of-Work networks.
Although, that’s not to say AI or machine learning in general isn’t already massively energy intensive due to the nature of how algorithms are trained.
However, by being on a Proof-of-Stake network they will be mitigating some of that energy consumption.
What makes PAAL unique?
In addition to offering AI on-demand services for the Ethereum network, PAAL also offers AutoPaal which is their autonomous AI research, insight, and analysis capabilities.
But what truly makes PAAL unique is its revenue sharing.
Each PAAL trade comes with a 4% fee which is split as follows.
1% is sent to the team, which they say will ensure they can attract, retain, and fairly pay top talent to help build the network.
1% of this tax goes towards marketing and user acquisition.
1% goes towards the development lab, which is a dedicated fund for innovation, supporting research and development of new features.
The final 1% goes towards the ecosystem, which includes investing in startups, giving back to the community through revenue sharing, and token buybacks.
The tokens that are bought back are directly funnelled into the staking pools, helping to secure the network overall and reducing the circulating supply.
To sum up, these taxes help ensure the liquidity pools are always available to trade, stakers are rewarded for their contribution, and the team can ultimately attract the best talent to keep the network growing and glowing.
But what about the tokenomics?
PAAL Tokenomics
Like most Proof-of-Stake projects, the PAAL ERC 20 token was pre-mined, meaning all tokens were created at launch.
PAAL can be used for all the classics such as paying network transactions, staking, and governance.
In total, there will only ever be 1 billion PAAL tokens.
Around 650 million of these tokens form the circulating supply, while 200 million have been kept in the Ecosystem Fund which focuses on growing and expanding the community.
A further 55 million have been allocated towards the Partnership & Business Development Fund which aims to form strategic partnerships and advance business development.
The final 45 million was given to the Marketing Fund which will be used to promote the project, increasing its visibility, and may also be used for brand creation, launching marketing campaigns, or engaging with the community, among other things.
Although not declared where it is being used, it does appear as if the final 50 million of the 1 billion is still connected to PAAL as it sits within their wallet.
The largest non-PAAL wallet contains around 3% of the total PAAL, which, while significant, isn’t necessarily alarming.
Though, it is worth noting that if a holder with 3% of the total value of PAAL decides to sell at once, it could negatively impact the price, at least in the short run.
PAAL.AI aims to be more than just a chatbot.
By offering custom AI databases and machine learning models, it is clear this project can become a lot of different things as it evolves.
With no set objective other than offering AI services as a whole, PAAL has left itself a lot of room to grow.
Though, with the project being so new, it is always worth remembering that nothing is guaranteed in crypto, of course.
However, by offering a range of services for both users, developers, and businesses, it is also quite possible PAAL’s best days still lay ahead of it.