Oct 23, 2025
Allora Foundation
The intelligence market is expanding rapidly across agents, decentralized finance (DeFi) platforms, and prediction markets. A single-model approach is too narrow to properly accommodate this market – and that’s where Allora Network and its native token, ALLO, come in.
By creating a smarter and more efficient network for AI, Allora Network addresses one of the biggest challenges in tech: overcoming siloed machine intelligence through collective intelligence. Divided into focused topics, the network allows workers to solve specific problems while the network acts as a versatile intelligence layer supporting a huge variety of AI applications.
In this article, the Allora Foundation unveils ALLO as the first intelligence-backed token and its tokenomics; and the long-term objectives of the Allora Network.
What is ALLO?
ALLO is the native token of the Allora Network, serving as the medium of exchange that enables activity within the network, including paying for inferences, creating and participating in topics, staking, and distributing rewards.
Rather than representing ownership or investment, ALLO functions as an utility token designed to coordinate participants and support the network’s intelligence economy.
As the network expands and more participants use Allora’s decentralized intelligence, ALLO facilitates this growth by powering access, incentives, and governance across the ecosystem.
AI workers use ALLO to submit, evaluate and consume inferences within specific topics. Every prediction, validation or data point exchanged in the network is settled in ALLO, making intelligence a liquid and tradeable asset.
Workers, reputers and validators earn ALLO based on measurable impact, whether improving model accuracy, validating data quality or maintaining network uptime.
And finally, consumers pay for inferences and topic participation using ALLO. As usage increases, these fees are distributed to contributors before new tokens are minted, offsetting emissions and creating a more sustainable cycle of growth.
Network Emissions & Participation
Allora’s emissions module is designed to manage the distribution of rewards and maintain the economic incentives for network participants, such as reputers and workers.
ALLO emissions are distributed through a smoothed EMA curve: rewards adjust gradually as activity grows. Inference fees flow before new tokens are minted, reducing inflation as usage rises.
Fees help ensure that contributors to the network are reimbursed for running expensive ML models, while minimizing inflation from network emissions. Any excess fees are added to the Emissions Treasury for future reward payouts. Future upgrades may include optimizing the network’s fee model, enabling network participants to quote their fees more expressively when consuming or producing inference.
Token emissions serve the purpose of providing liquidity for reward payouts. The general philosophy adopted by Allora tokenomics revolves around two key goals.
First, ALLO emissions are subjected to a more continuous form of a Bitcoin-like schedule to maintain long-term rewards in a limited-supply economy. Second, the annual percentage yield (APY) earned per staked token should be stable around major token unlocks to disincentivize these tokens from being dumped on the market
1. Reward Distribution
The emissions mechanism allocates a percentage of the Fee Collector's token balance to the Allora Emissions module. This allocation is directed towards rewarding reputers and workers, ensuring they receive a share of the transaction and inference request fees collected by the network. This incentivizes accurate and reliable contributions.
2. Epoch-Based Reward Calculation
Allora’s mechanism operates over “epochs” which are defined per-topic and can span multiple blocks. Rewards for a given epoch on a topic are calculated and distributed at the end of each epoch. At the end of an epoch on a particular topic, the emissions module triggers the reward distribution process, updating the balances of all actors involved.
3. Autocompounding of Stake
The mechanism facilitates the autocompounding of stake positions, meaning that the rewards earned are automatically added to existing stakes.
ALLO Tokenomics
As we approach the ALLO Token Generation Event (“TGE”), the Foundation presents the ALLO utility and tokenomics.
Token Details
- Initial Distribution:
- Network Emissions: 21.45%
- Foundation: 9.35%
- Community: 9.30%
- Ecosystem & Partnerships: 8.85%
- Allora Prime Staking Rewards: 2.50%
- Backers: 31.05%
- Core Contributors: 17.50%
- Maximum Supply: 1,000,000,000 ALLO
- Token Decimals: 18
- Token Standard: Allora (ICS20)
- The token will be multichain on day 1, with bridges to Ethereum Mainnet, Base, BNB Chain, and more.
Allocation Breakdown
Ecosystem & Partnerships (8.85%)
8.85% of ALLO tokens are reserved for the ecosystem. These tokens are held and distributed by the Allora Foundation.
Distributions from this allocation are intended to support the growth of the Allora Ecosystem through distributions of grants to teams building projects using Allora Network’s inferences.
Half of the Ecosystem allocation will be unlocked on day 1, with the remaining half unlocking linearly over the two years following TGE.
Foundation (9.35%)
9.35% of ALLO tokens are reserved to support the ongoing operations of the Allora Network. This fund will help manage the network's growth, development, and ecosystem, ensuring Allora remains the intelligence layer of the future.
Of the 9.35% within the Foundation allocation, 4.925% will be unlocked day 1, supporting liquidity and bolstering network security (e.g. staking / delegation). The remainder will unlock linearly over the following two years following TGE.
Community Pool (9.30%)
9.30% of ALLO tokens will be distributed to the community for qualifying activities during testnet and other phases of the project that helped Allora to develop, evolve and improve.
Allora Prime Staking Rewards (2.50%)
2.50% of ALLO tokens are reserved for Allora Prime Staking Rewards, a premium staking program that supports network security and incentivizes early contributors to the Allora Network.
Network Emissions (21.45%)
21.45% of ALLO tokens are used to compensate workers, reputers, and validators, with rewards distributed based on their contributions to the network. Token emissions, along with transaction fees and inference request fees, form the primary sources of rewards for these network actors.
The emission rate considers token circulation, staked tokens, and economic activity, dynamically adapting to align incentives with network value and performance.
Core Contributors (17.50%)
17.50% of ALLO tokens are reserved for Early Contributors who developed the core IP underlying Allora, including Allora Labs.
These tokens will be subject to a three (3) year lockup schedule.
Tokens within this category will be locked for 12 months, at which time 33% will unlock, with the remainder unlocking linearly over the following 24 months.
Early Backers (31.05%)
31.05% of ALLO tokens are reserved for Backers who have provided financial, advisory, and/or strategic support to the Allora Network.
These tokens will be subject to a three (3) year lockup schedule.
Tokens within this category will be locked for 12 months, at which time 33% will unlock, with the remainder unlocking linearly over the following 24 months.
Token Distribution
The maximum amount of ALLO that will ever exist is 1,000,000,000 ALLO tokens, with an initial circulating supply of 20.05%. ALLO will be available on Allora mainnet and, following the Allora Network Public Mainnet launch, on other networks via supported bridges.
The majority of ALLO will be allocated to the Allora Network community across various segments, including Ecosystem, Allora Prime Staking Rewards, Foundation, and initial availability periods.
Additional Resources
For more detailed information on the Allora Network, please visit our whitepaper here.
Disclaimer
THIS IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL, THE SOLICITATION OF AN OFFER TO PURCHASE OR ACQUIRE TOKENS IN ANY JURISDICTION, OR AN ENCOURAGEMENT TO PURCHASE TOKENS .
You should not rely on the content herein for advice of any kind, including legal, investment, financial, tax, or other professional advice. This document does not substitute for advice from a qualified professional or your own research.
This document contains certain forward-looking statements and information about our current and future operation, adoption and use of the ALLO token and the Allora Network which are based on currently available information Any forward-looking statement contained herein is subject to risks and uncertainties and all information presented may be subject to change without notice. Allora Foundation and its subsidiaries make no representation or warranty, express or implied, as to the completeness, reliability, validity, or accuracy of this information.
© 2025 Allora Foundation.
