Binance Launchpool has recently launched a series of new coin activities, and last week announced the launch of the highly-discussed DePIN project from io.net. The mining activity for the new coin attracted a total of over $4 billion in funds to participate in IO token mining. However, many investors participating in the activity are not familiar with io.net. Therefore, today we will introduce what kind of project io.net is and why it has generated such high discussion in the market.
As we all know, the emergence of ChatGPT symbolizes the world entering a new era of artificial intelligence (AI). However, in addition to building artificial intelligence models, the entire AI industry chain includes many indispensable elements such as data resources, computing resources, power resources, etc. io.net is a project that focuses on computing resources in this chain, which also means that what io.net is doing is a necessity for the future technology industry.
Specifically, io.net is a Solana blockchain network that focuses on building an enterprise-level decentralized computing network. Its main goal is to provide a cost-effective way for machine learning (ML)/artificial intelligence (AI) engineers to process large-scale computing tasks through a decentralized cloud cluster. According to official statements, this cost is much lower than traditional centralized cloud services.
The vision of this project is to develop the IO token it has created into a currency for “computing resources,” and through this, it promotes an ecosystem where computing resources can be accessed as a resource and as an asset to support a wide range of products and services.
In the AI industry, training models involves not just simple computations on a single device, but requires calling GPU networks that involve collaborative work, utilizing parallel and distributed computing to optimize performance, especially when dealing with large data sets or complex models.
With the development of AI technology, the supply of space, power, and cutting-edge equipment has begun to lag behind demand, leading to limitations in technology growth. Traditional cloud services on the market often fail to meet the high demand for computing resources by AI/ML companies, leading to problems such as GPU limitations, limited choices, and high costs. io.net is built for the DePin project to solve this problem, aiming to aggregate unused GPU capacity from independent data centers, crypto miners, and other hardware networks such as Filecoin and Render to provide computing power for AI companies that require large amounts of computing resources.
io.net builds a DePIN (decentralized physical infrastructure network) by integrating GPU resources that are underutilized in independent data centers, crypto miners, and other hardware networks such as Filecoin and Render. This network allows engineers to access a large amount of computing power on demand, while the system’s design ensures usability, customization, cost efficiency, and ease of implementation.
The current io.net ecosystem architecture is mainly divided into three main axes: io.net (a development company that maintains the IOG network and builds products and services on top of the network), the IOG network (referred to as the “GPU Internet”), and the IOG framework (aimed at building an open-source, developer-friendly SDK).
In summary, io.net’s solution aims to overcome the limitations of traditional cloud computing services through an innovative decentralized computing platform, providing faster and more economical solutions for various high-performance computing needs.
IO is the native utility token of io.net, with functions such as payment medium for computing services, staking, governance, etc. io.net has raised $40 million through two rounds of token private placements, accounting for 36.24% of the genesis token supply and 22.65% of the maximum supply. In this Binance Launchpool event, 4% of the initial supply is to be distributed to participants.
The maximum supply of IO tokens is 800 million, with 500 million allocated at launch (500 million will not be immediately circulated), and the remaining 300 million will be distributed every hour and paid out to suppliers and their stakers as rewards. However, the rewards will decrease continuously over the next 20 years based on the deflation model, starting at 8% in the first year, and decreasing by 1.02% per month (approximately 12% per year).
Additionally, there is an automated IO token burning mechanism in the io.net ecosystem. The income generated during the operation of the io.net network will be used to repurchase and burn IO tokens.
It is reported that the latest valuation of io.net is $1 billion, with investors including Multicoin Capital, Delphi Digital, Animoca Brands, OKX, Aptos Labs, and Solana Labs. However, at the current Pre Market contract market price of $4.5, the total valuation of IO tokens has risen to $3.6 billion.
DePIN+AI is a concept sector in the cryptocurrency industry with great development potential. As artificial intelligence technology evolves, the demand for infrastructure like io.net will continue to grow. The well-known investment institution Multicoin Capital has commented on io.net in their research reports: “io.net is a classic example in the DePIN track, with token incentives that structurally reduce the cost of acquiring and retaining supplier resources, ultimately reducing the cost to end consumers. The network pools a large number of heterogeneous GPUs into a shared pool for use by AI developers and companies. Today, the network is supported by thousands of GPUs from data centers, mines, and consumer-grade devices.”
io.net, as a decentralized infrastructure that competes with cloud computing giants like AWS, can provide cloud computing services that are cheaper and more efficient than AWS (claiming to be 30% to 90% cheaper). This is quite attractive to AI model development companies that require a large amount of computing resources.
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