Understanding Emissions Strategies in AI Tokens

Tuesday, December 17, 2024 12:00 AM
13
Understanding Emissions Strategies in AI Tokens cover

AI tokens are rapidly establishing their significance within the cryptocurrency market, yet comprehending their emissions strategies is essential for mitigating short-term risks. This article explores the tokenomics of several prominent AI projects and their forthcoming supply expansions, providing insights into how these changes may impact market dynamics.

Bittensor’s $TAO token is projected to experience a substantial 3.02% increase in circulating supply over the next month, translating to an additional $129.26 million in market value. This considerable emission could lead to heightened liquidity and potential selling pressure, prompting investors to closely monitor trading volumes and price fluctuations to gauge market appetite for the increased supply. In contrast, both $AKT from Akash Network and $AIOZ from AIOZ Network are set to expand their circulating supplies by more moderate percentages of 0.82% ($7.92 million) and 0.59% ($7.37 million), respectively. This measured approach aims to balance token dilution while maintaining a controlled release schedule, thereby minimizing market shocks.

On the other hand, FetchAI’s $FET and Render Network’s $RENDER are adopting conservative supply expansion strategies, with $FET seeing a modest 0.30% increase ($14.15 million) and $RENDER planning a minimal 0.10% increase ($4.60 million). These strategies are crafted to safeguard token value by limiting supply-side inflation, particularly during volatile market conditions. Additionally, Virtual AI Agents distinguishes itself by maintaining a static token supply since its inception, with no planned emissions, thereby eliminating dilution risk entirely. This strategy, while stabilizing supply dynamics for token holders, may restrict growth incentives through future token releases. Understanding these diverse emissions strategies is vital for effectively navigating the AI token landscape and managing associated risks.

Related News

Decentralized Physical Infrastructure Networks (DePin) Revolutionizing the Tech Sector cover
12 hours ago
Decentralized Physical Infrastructure Networks (DePin) Revolutionizing the Tech Sector
Decentralized Physical Infrastructure Networks (DePin) are reshaping the tech industry by facilitating decentralized projects in real-world infrastructure. Recent developments in the DePin sector include VanEck's $2.5 million investment in DAWN for decentralized wireless service, IoTeX's collaboration with the Blockchain Association for DePin political advocacy, Exabits securing $15 million in seed funding, and more. Exabits, an AI GPU tokenization startup, received $15 million in seed funding. By tokenizing GPU compute resources, Exabits has reached a $150 million valuation and experienced a 300% quarterly revenue increase. GPUs play a vital role in the DePin AI ecosystem due to the high computing demands of AI research. While companies like Aethir focus on GPU-as-a-service partnerships, Exabits offers a unique perspective that shows promise in the sector.
Acurast's Journey: Celebrating Progress and Future Milestones cover
a day ago
Acurast's Journey: Celebrating Progress and Future Milestones
In a recent message, Acurast's Co-Founder Alessandro De Carli celebrated a year of significant progress for the project, emphasizing the importance of community involvement. He expressed gratitude to various contributors, including Cellhasher for their hardware R&D, Passive Crypto Mining for their educational content, and Kevin for his valuable feedback. De Carli highlighted the importance of a collaborative community in achieving Acurast's vision of transforming computing by leveraging billions of smartphones to create a decentralized, secure, and confidential computing platform for developers. The message also detailed Acurast's journey since the launch of the Acurast Lite, noting unprecedented growth in compute provision and activity on their incentivized testnet, which has become the most active chain in the Kusama ecosystem with over 120 million transactions. This success allowed the team to optimize the protocol significantly, achieving over 100x scalability. However, as more developers engaged with the protocol, it became clear that the pricing and reward system required a redesign to ensure long-term sustainability and community participation. Looking ahead, Acurast has set a target for the Token Generation Event (TGE) in April 2025, following extensive discussions on the benefits of delaying the event for better system design. Upcoming milestones include the public release of iOSTokenomics, the launch of a new reward and pricing system, and the introduction of staking and economic security. Acurast aims to redefine the future of computing, particularly in the context of AI, and invites the community to join in this transformative journey.
Zerebro Partners with io.net to Enhance Ethereum Validation with Decentralized GPU Services cover
a day ago
Zerebro Partners with io.net to Enhance Ethereum Validation with Decentralized GPU Services
In a significant move for the decentralized AI ecosystem, io.net has announced a partnership with Zerebro, a creative autonomous AI agent, to enhance Ethereum Validator operations. This collaboration will enable Zerebro to utilize io.net's scalable and geo-distributed GPU network, thereby boosting its computational power for Ethereum validation. The partnership aligns with io.net's mission to provide affordable and scalable GPU resources to AI startups, ensuring reliability and scalability in their operations. This initiative marks a pivotal step in integrating decentralized compute resources into the burgeoning field of AI and blockchain technology. Zerebro's Co-Founder, Agustin Cortes, emphasized the importance of this partnership, stating that access to decentralized GPU services will empower users to explore innovative AI applications and complex decentralized applications (DApps). He remarked, "Zerebro is at the forefront of bridging the AI and crypto future," highlighting the commitment to decentralization while fostering innovation. The collaboration is expected to facilitate the development of creative and scalable applications, allowing developers to harness the potential of decentralized compute networks for a variety of on-chain tasks. As Zerebro continues to develop its open-source framework, Zerepy, the focus on securing the Ethereum blockchain through Validator operations is paramount. The partnership with io.net not only aims to enhance Zerebro's core functionalities but also to create a sustainable future for autonomous AI agents. By leveraging io.net's GPU clusters, Zerebro can sustain operations and explore innovations such as large language models on decentralized networks. This collaboration signifies a promising future for the integration of AI and blockchain, fostering an environment that is both autonomous and decentralized, ultimately revolutionizing the landscape of AI agents in the web3 infrastructure.
GEODNET: Transforming Global Positioning with Decentralized RTK Network cover
a day ago
GEODNET: Transforming Global Positioning with Decentralized RTK Network
GEODNET is revolutionizing global positioning services through its decentralized Real-Time Kinematics (RTK) network, which provides cost-effective and precise GPS and GNSS corrections. With centimeter-level accuracy, GEODNET caters to high-precision applications including autonomous vehicles, agricultural automation, and drone deliveries. Founded in 2021 by Mike Horton, who has over 25 years of experience in GNSS and RTK technology, GEODNET has rapidly expanded to over 10,000 RTK base stations globally, making it the largest RTK network in the world. This growth has resulted in an impressive $2 million in annualized revenue, reflecting a 455% increase from the previous year. Utilizing a Decentralized Physical Infrastructure Network (DePIN) model, GEODNET significantly reduces the capital and operational costs associated with building a global RTK network. By distributing costs among infrastructure owners, the company has managed to cut expenses by 90% compared to traditional models. This innovative approach has allowed GEODNET to deploy its base stations quickly and efficiently. The network's partnerships with organizations such as the US Department of Agriculture demonstrate its practical applications and scalability, particularly in supporting tractor auto-steering technology. GEODNET's ecosystem continues to grow through strategic collaborations with companies like Boson Motors, Wingbits, and Propeller, enhancing its RTK capabilities across various sectors. These partnerships not only extend GEODNET's reach but also improve the accuracy of applications ranging from precision agriculture to advanced flight tracking. As GEODNET aims to expand its node network to achieve full global coverage within the next few years, its focus on cost efficiency, scalability, and reliability positions it to meet the increasing demand for precise geolocation services in a rapidly evolving technological landscape.
Solana Launches DePIN Compute to Meet AI's Growing Demand for Computing Power cover
a day ago
Solana Launches DePIN Compute to Meet AI's Growing Demand for Computing Power
Solana has launched Decentralized Physical Infrastructure Networks (DePIN) Compute, a groundbreaking decentralized system designed to address the surging demand for computing power driven by the rapid expansion of artificial intelligence (AI). Traditional computing systems are struggling to meet this demand, but DePIN offers a novel solution by leveraging underutilized resources, akin to how Airbnb allows homeowners to share their vacant properties. This innovative approach enables users to monetize their idle GPUs, making them available for developers, researchers, and startups in need of computational resources. The functionality of DePIN Compute is straightforward: users can rent out their unused GPU power, creating a new income stream while optimizing resource utilization. This decentralized model is particularly beneficial for smaller developers and researchers who often find high-performance computing platforms financially prohibitive. By utilizing blockchain technology, DePIN Compute ensures a fast, cost-effective, and scalable method for sharing computing resources, ultimately democratizing access to advanced technology. The significance of DePIN Compute is underscored by recent investments, notably VanEck's commitment of over $10 million to the project, reflecting strong confidence in its potential. VanEck's prior backing of Solana has already contributed to a positive market response, including the filing for the first SOL-based Exchange Traded Fund (ETF) in the United States. As AI continues to evolve, initiatives like DePIN Compute are set to revolutionize how computing power is accessed and utilized, fostering innovation and enabling a broader range of individuals and organizations to benefit from cutting-edge technology.
VanEck Invests $2.5 Million in Solana-Based DePIN Project Dawn cover
2 days ago
VanEck Invests $2.5 Million in Solana-Based DePIN Project Dawn
VanEck, a prominent global asset manager, has made headlines with its recent investment of $2.5 million in the Solana-based DePIN project known as Dawn. This significant financial commitment is particularly noteworthy as it marks the first occasion where multiple funds under the VanEck umbrella have collectively invested in a single entity. The investment is poised to facilitate the development of internet-sharing mini-networks, which will enhance connectivity for users, while also focusing on the expansion of the retail market through innovative hardware solutions. The announcement, reported by crypto media outlet Blockworks, highlights the collaboration between VanEck's Digital Asset Alpha Fund and VanEck Ventures in this venture. The funds will be directed towards creating decentralized networks that leverage blockchain technology to improve physical infrastructure and systems. By utilizing the Solana blockchain, DePIN aims to revolutionize the way tangible infrastructure is managed and accessed, promoting a more decentralized approach to internet sharing and connectivity. This investment not only underscores VanEck's commitment to advancing blockchain technology but also reflects a growing trend among traditional asset managers to explore opportunities within the crypto space. As the DePIN project Dawn progresses, it is expected to pave the way for innovative solutions that enhance user experience and expand market reach, further solidifying the role of blockchain in modern infrastructure development.
Signup for latest DePIN news and updates