Solana’s DePIN Project IO Net Tokenomics Revealed, What Next?

The unveiling of IO Research’s plans to construct the world’s largest Decentralized Physical Infrastructure Network (DePIN) marks a significant milestone in the realm of decentralized cloud service platforms. Complementing this ambitious initiative is the revelation of IO tokenomics, shedding light on the intricacies of the project’s underlying token economy.

The IO token, set to have a maximum supply of 800 million, will see 500 million tokens allocated at launch. However, what sets this tokenomics apart is the unique distribution mechanism. Over a span of 20 years, the remaining 300 million tokens will be gradually issued and rewarded to suppliers and their pledgers every hour. This approach ensures a steady flow of incentives while maintaining a deflationary model to mitigate inflationary pressures.

In its initial year, rewards will start at 8%, gradually decreasing by 1.02% monthly, equivalent to approximately 12% annually. Additionally, io.net has implemented a programmed IO destruction system, utilizing income generated by the IOG network to repurchase and destroy tokens, thereby adjusting the destruction amount according to market dynamics.

Revenue Generation and Business Model of io.net

At the core of io.net’s operational framework lies its revenue generation model, carefully designed to sustain the platform’s growth and viability. Central to this model is the imposition of fees on both users and suppliers, ensuring a balanced ecosystem where value is exchanged for services rendered.

When users make computing power reservations, they are subjected to commission and payment fees, providing a source of revenue for io.net. Conversely, suppliers leverage the platform to extract rental fee revenue, monetizing their computing resources effectively.

Also Read: Crypto Prices Today April 17: Bitcoin At $64K, Ethereum Above $3100, SOL & XRP Recover

Funding Success for IO Research and Development

The successful completion of a Series A funding round, with IO Research securing $30 million in investment, underscores the growing recognition and support for decentralized computing initiatives. The infusion of capital will play a pivotal role in propelling the development of io.net’s DePIN project, particularly in enhancing the aggregation of distributed GPUs. Amidst a backdrop of global computer shortages, driven by escalating demand for AI-based solutions, the funding serves as a testament to the platform’s strategic relevance and market potential.

Also Read: Stocks of Bitcoin Mining Firms Take A Major Hit Before Halving Event

The post Solana’s DePIN Project IO Net Tokenomics Revealed, What Next? appeared first on CoinGape.