Monthly Report - July 2025. Our First On-Chain Month

Our first on-chain month on Base is officially in the books. As we wrap up July 2025, we’re taking a moment to reflect and share our progress. This monthly report serves both as an update for the community and as a valuable introspection exercise for our team. July 2025 was a hugely packed month on the commercial, adoption, and technology fronts. In addition to executing our roadmap, we achieved several notable developments:

• We launched a second R1 liquidity pool on Aerodrome, the primary DEX of Base, with incentive support from the Aerodrome team. This added more liquidity to the R1 token and it served as a positive signal for a relevant player in the Base ecosystem.

• The R1 token benefited from further exposure through new wallet support and listings. Trust Wallet recognized R1 and officially whitelisted the token, meaning now anyone can locate and import R1 more easily.

• We hit key roadmap goals (below) including R1FS storage upgrade, CStore v1 launch and R1 Edge Services - all shown in the demo.

Read on to learn about the big achievements of last month and why they matter, from product advancements and Proof-of-AI integration to research papers. 

Liquidity and Ecosystem Growth

July saw significant growth in Ratio1’s on-chain ecosystem. Our second liquidity pool went live on Aerodrome, which is Base’s leading automated market maker (AMM) and liquidity hub. This pool (R1 paired with USDC) was not only launched by our team but also incentivized by Aerodrome’s team, meaning liquidity providers can earn extra rewards. Such support from Aerodrome underscores their confidence in Ratio1’s potential and gives R1 holders easier trading and entry points. Increased liquidity on a top Base DEX can help stabilize the token economy and invite new participants into the network.

Being deployed on Base (Coinbase’s Layer-2 blockchain) has proven advantageous. Base is rapidly growing as a hub for innovative projects, and Ratio1 stands out as an advanced decentralized AI compute platform in that ecosystem. Over the month, we’ve also improved token accessibility. The R1 token is now tracked on major aggregators (like CoinMarketCap and CoinGecko) and supported in popular wallets. Notably, Trust Wallet’s whitelisting of R1 makes it seamless for users to find and manage our token. This kind of integration “reaches the masses -– one wallet at a time,” as our team quipped. Altogether, these strides in market presence mean a broader community can participate in Ratio1 -– be it by running nodes, providing liquidity, or simply holding R1.

Advancing the Product Roadmap

On the technical side, we achieved several important roadmap milestones in July. Foremost was closing the R1FS migration (Roadmap item R1-330) to its new version and finalizing CStore v1 (R1-312 & R1-249). Both R1FS and CStore are core components of Ratio1’s decentralized cloud architecture. For those unfamiliar, R1FS is our distributed file storage system: an IPFS-based global file system that shards and encrypts data across nodes for secure, fault-tolerant storage. This provides every app on Ratio1 with encrypted, persistent storage without relying on a central data center. Alongside it, CStore (ChainStore) is a distributed in-memory key-value database akin to a decentralized Redis cache. CStore v1’s completion means developers can now easily share state and cache data across containers in a Ratio1 deployment, with the platform handling consistency behind the scenes.

We also launched R1 Edge Services (R1-313), a new capability that allows locally executed third-party apps (or edge devices) to securely interface with Ratio1’s services. In practice, this opens the door for hybrid deployments – for example, an on-premise container could leverage Ratio1’s network storage (R1FS) or database (CStore) via authenticated channels. It extends Ratio1’s functionality beyond purely on-chain or in-network apps, bridging to external environments when needed.

All these advances – the upgraded R1FS, the CStore v1, and the new Edge Services – were showcased in our “R1 Drive” demo. R1 Drive is a multi-node, distributed decentralized storage application we developed to highlight the technology in action. It serves as both a practical tool and a reference template for developers. In the demo, files are uploaded and retrieved across multiple nodes, in order to show how R1FS ensures redundancy and privacy, as well as how CStore can keep track of metadata or application state.  R1 Drive is also our first full NodeJS app template (built with Next.js) that anyone can fork, modify, and deploy on Ratio1. By open-sourcing this demo, we provide a starting point for others to build their own decentralized apps – whether for commercial services, education, or other purposes – by leveraging Ratio1’s “Kubernetes-plus” platform capabilities.

Importantly, these product milestones demonstrate the end-to-end nature of Ratio1’s platform. An app running on Ratio1 automatically benefits from distributed storage, a built-in database, and secure networking, all orchestrated by smart contracts and oracles. As one of our earlier blog posts noted, developers can launch microservices that are load-balanced, scalable, and ready to use without worrying about infrastructure. The progress in July brings us closer to that vision, making the developer experience smoother and the system’s reliability higher.

Proof-of-AI and Cloud Migration Progress

While our full Proof-of-AI (PoAI) rollout is officially scheduled for August, we made significant headway by deploying a first version of the PoAI protocol this month. This initial implementation is fully integrated with our backend Deeploy API, and we also rolled out the first beta of the Deeploy UI – an end-to-end web console for Cloud Service Providers (CSPs) to use Ratio1. In essence, CSP partners (or any organization running Ratio1 nodes) can now use the Deeploy interface to submit AI workloads, manage deployments, and observe jobs being distributed to their nodes. This marks the true start of PoAI job distribution within the Ratio1 network.

Why is PoAI so important? In Ratio1’s dual-consensus model, PoAI works in tandem with Proof-of-Availability (which rewards uptime) to ensure that new R1 tokens are only minted for doing useful AI work. Instead of burning electricity on arbitrary hashing (like Bitcoin’s Proof-of-Work), PoAI rewards nodes for carrying out real machine learning tasks – such as model inference or training – that are verifiably useful computations.

This is part of a broader trend in decentralized infrastructure: networks want to prove real-world work is being done, rather than simply running pointless puzzles.

For example, other projects have also explored “Proof of AI” consensus to ensure participants are indeed contributing compute power rather than wasting emissions pretending to act as a node.

Ratio1’s PoAI implementation is directly tied into our on-chain reward system, so node operators get fairly rewarded with R1 for doing AI or other processing tasks, and those who try to game the system without doing work are punished.

As one article noted, aligning incentives this way enhances the trustworthiness and scalability of decentralized AI networks. With PoAI now active in beta form, we are beginning to route actual AI workloads through the Ratio1 network and issuing rewards accordingly – a huge step toward our vision of a decentralized AI cloud.

Alongside PoAI, we pursued an ambitious goal of migrating existing cloud applications onto Ratio1. In July, we successfully completed the first migration (roadmap item R1-293) of a full AWS-based application stack into the Ratio1 environment. This included the app’s backend services, frontend, content management system, and databases – essentially an entire cloud deployment reproduced on Ratio1. 

The migration demonstrated how Ratio1 can work over as a decentralized drop-in alternative to traditional cloud hosting, while our platform took care of container orchestration, networking, and stateful services out-of-the-box. The takeaway for businesses thinking about cloud sovereignty or cost-efficient scaling is that it is possible to run sophisticated multi-tier applications on a decentralized network without depending on AWS or any other hyperscaler.

Originally, we had two cloud migrations on our roadmap for July, but we decided to push the second migration to August, as the overall ecosystem for that second specific application required additional tuning and migration tools.

That was a good call as it allows us to spend the proper amount of time on any complex dependencies or architecting changes that for a smooth transition. These resulting tools will nevertheless help us dramatically accelerate similar processes in the future.

Enterprise applications can have many interconnected services and we want each migration to be robust. The slight delay emphasizes our focus on doing it right rather than quickly and positions to execute a smooth secondary migration in the weeks ahead. 

By August, with PoAI fully live and another migrated app under our belt, Ratio1 will further prove its capability as a general-purpose cloud platform.

Research and Innovation Updates

On the research front, July was equally rewarding. Earlier in the year we submitted a research paper describing Ratio1’s architecture and innovations, and in May we presented it at the 25th International Conference on Control Systems and Computer Science (CSCS-25) in Bucharest. We’re excited to share that not only was the paper well-received at the conference, but it has also been accepted for publication by IEEE (and is currently in the process of being uploaded to IEEE Xplore). In practical terms, this means Ratio1’s concepts are being validated in the academic community. The paper outlines our vision of Ratio1 as a “meta-OS” for AI infrastructure, a concept we highlighted at CSCS-25. It details components like R1 OracleSync (for secure task validation), ChainDist (for decentralized job scheduling), as well as R1FS and CStore, and how they all work together in a blockchain-powered cloud stack. Having this work published through IEEE lends credibility to our approach and allows others to learn from or build upon our design. We consider the research milestone essentially complete – the paper was accepted, presented, and the camera-ready version submitted – now we’re just awaiting the formal appearance on IEEE Xplore.

Meanwhile, we haven’t been resting on our laurels in R&D. Our team has been hard at work on a third research paper that will dive even deeper into Ratio1’s novel mechanisms. This upcoming paper is set to explore the inner workings of our Proof-of-AI mechanics, the internal blockchain consensus, and the orchestration techniques that enable Ratio1 to coordinate containers and AI tasks across distributed nodes. That is to say, we’re lifting the hood  on how Ratio1 network achieves trustless coordination (e.g. how nodes agree on task results via oracles, fault tolerance of the network, etc.).

Hopefully, this information will be useful for others in the wider decentralized compute/AI ecosystem.

By publishing our research we’re contributing to the state of the art and opening up our platform to peer review, facilitating transparency. The research will document what we built but also why we made certain design choices (e.g. our dual consensus model, license-based token emission etc.) and how it compares to other approaches. We are aiming for an appropriate journal or conference for this paper, and more details on that to follow soon.

July checklist is beyond our core roadmap items and ecosystem integrations, it has established Ratio1 as a key player in the decentralized AI space:

• We launched the R1:USDC Uniswap v2 LP and locked it for 12 months via Unvest, in order to signal long-term commitment to token liquidity and stability. We also expanded our DeFi footprint beyond Base, launching the R1:USDC LP + Farm on PancakeSwap.

• The R1:USDC Aerodrome v3 LP went live along with an incentivized farming program, offering even more liquidity and yield for LPs.

• A total of 125 Node Deed (ND) licenses were sold in July, a testament to interest in participating in Ratio1's compute network.

• KeySoft and Build21 (fully migrated to Ratio1) two infrastructure-focused companies, have started migrating parts of their infrastructure to Ratio1, validating our value proposition for decentralized cloud computing.

• R1 token was officially whitelisted on Ledger Live, MetaMask, Trust Wallet and Family Wallets, making the token much more accessible and usable across major crypto platforms.

• In July, the official Ratio1 Whitepaper was released for both the community and prospective partners - diving deep into our technical architecture, tokenomics, and consensus models.

• We are proud to announce that Cloudflare awarded Ratio1 with a $250K infrastructure grant, in recognition of our proximity to where next-gen cloud innovation is happening.

• We launched the Ratio1 Node Monitoring Bot, a tool to track node status in real-time to help community node operators and CSPs with uptime visibility.

• R1 is now live on Spritz Finance’s infrastructure card, allowing users to spend R1 tokens in real-world transactions through connected Visa rails.

• We organized our first X Space with the core team, where the community could ask questions and hear from our builders. 

• We launched the Ratio1 Ambassadors Program designed to empower those in our community who want to contribute by spreading  grassroots awareness of our mission.

• We released the official Ratio1 pricing list for compute and orchestration services so developers and partners can budget for decentralized infrastructure.

• We did a live demo of R1FS and CStore on X, allowing the public to experience the performance and capabilities of our decentralized storage and state management tools.

So all in all, it has been a strong first Month 1 on-chain for Ratio1.

We expanded liquidity and community access, delivered on key technical promises, initiated our Proof-of-AI era, and made strides in both practical deployments and theoretical research. All these facets – commercial, technological, and academic – feed into each other. The growing on-chain activity and token distribution (via PoA/PoAI) give us real-world data and momentum. The product improvements and migrations prove out our claims in real scenarios, making the platform more attractive to users. The research efforts ensure we remain on the cutting edge and help distinguish Ratio1 in a crowded “AI+blockchain” field.

Importantly, we’ve done this while maintaining our core principle: democratizing AI through decentralization. In a world where AI services are often tied to big cloud providers, Ratio1 offers an alternative where anyone can operate an AI node or launch an AI-powered app, with trust guaranteed by on-chain mechanisms. As our Base blockchain smart contracts are immutable and our tokenomics are transparent (with no VCs or premine), the community can trust the platform’s rules. The first month of operations has validated many of our assumptions. It also taught us where we can improve – whether it’s smoothing out the user experience in the Deeploy console or optimizing the performance of R1FS in high-load situations.

As we roll into August, we are thrilled to be finalizing the full network rollout of Proof-of-AI, deployment of our second cloud app migration, and adding new node operators and CSP partners. We expect even more community growth as the word spreads and as Base’s ecosystem grows around us. Outside the hype, things are looking up: public interest in decentralized cloud computing is still strong as ever, and most would agree that marrying blockchain to AI tasks could potentially provide a model to serve globally scalable and privacy-preserving AI services. Ratio1 is emerging as a leader in this movement.

A big thanks to everyone who joined us in this first on-chain month, be it as a liquidity provider, running a node, facilitating migrations (CSP), providing feedback, or simply following along. Building this with the community, we are more excited than ever about what is to follow. Here is to Month #2, the #BaseSummer and beyond!