io.net Launches Revenue-Backed Token Burn, Targets 12M IO Removal in First Year

iconChainGPT
Share
AI summary iconSummary
io.net announced a revenue-backed token burn as part of its token launch news, targeting 12 million IO tokens removed in the first year. The first burn on June 11 used customer revenue, not new tokens. The IDE will destroy at least 50% of post-payout revenue in IO. The project also revealed an $8 million enterprise contract and processes over 4 billion AI tokens daily on OpenRouter. New token listings continue to highlight DePIN growth.

io.net launches revenue‑backed token burn, targets up to 12M IO removed in first year Decentralized GPU provider io.net has unveiled a new token burn mechanism directly tied to network revenue, saying the model could eliminate as many as 12 million IO tokens from circulation over the next 12 months. The first scheduled burn fell on June 11, coinciding with the network’s third anniversary, and future burns will be funded by customer usage revenue rather than new token issuance. How the burn works - Under io.net’s Incentive Dynamic Engine (IDE), at least 50% of post‑payout network revenue received in IO tokens will be permanently destroyed. - Burns are financed from operating revenue generated by customers, not by minting additional tokens, aligning token supply reductions with real product usage. Commercial momentum and enterprise deals io.net says it is experiencing its strongest commercial period to date. The firm disclosed an $8 million enterprise contract—its largest to date—which translates to roughly $650,000 in monthly on‑chain network earnings. Additional enterprise deals are reportedly advancing through late negotiation stages. DePIN growth and AI inference volume The company also claims the top spot among decentralized physical infrastructure networks (DePINs) on OpenRouter, an AI model routing platform. io.net reports it now handles more than 4 billion inference tokens per day, competing with centralized cloud providers for AI inference workloads. Market context and rationale io.net frames its move as a response to surging demand for AI compute: it notes major tech firms have committed over $500 billion to AI infrastructure projects across 2025 and 2026. The company argues that hyperscalers’ capacity limits and pricing create opportunities for decentralized alternatives offering access to high‑performance GPUs. Stability for suppliers The IDE is also designed to help retain infrastructure suppliers by decoupling payouts from token price volatility. Supplier payouts are linked to a stable U.S. dollar value; reserve mechanisms are used to absorb market swings so providers can expect predictable earnings even if IO’s market price falls. CryptoEcon Lab, a tokenomics research firm, independently modeled the system and reported supplier returns stayed stable in stress tests simulating a 55% drop in demand and a 50% decline in token price. CEO perspective and roadmap “Most token economies in our space are still built around the hope that prices go up. Ours is built around the certainty that people are paying to use the network. That’s a fundamentally different foundation,” said io.net CEO Gaurav Sharma. Looking ahead, the company is developing an Agent Cloud that would enable AI agents to autonomously source and manage compute resources, part of an effort to create a self‑sustaining on‑chain compute economy supported by decentralized infrastructure providers worldwide. What to watch Key metrics to follow will be actual burn volumes over the coming quarters, the outcome of io.net’s enterprise pipeline, and adoption of its Agent Cloud. If usage‑linked burns scale with rising commercial revenue, io.net’s token supply dynamics and supplier economics could become an interesting case study in DePIN tokenomics and AI infrastructure decentralization.

Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.