Hello everyone, I am Crypto Smart. Under the fast-paced demands of the currency circle, various ways of playing are constantly emerging. I believe that everyone has gradually mastered all kinds of skills from immaturity to maturity. So today, let’s add some skills and focus on the depin track, and talk about the hot project that has just been launched on Binance. It is a decentralized AI cloud computing platform. #IO去中心化算力网络 Let’s take a look at what opportunities there are to participate?
As a project that has been launched on bn, io.net’s own strength and value have certainly been assessed by professionals. We can refer to bn’s research reports with clear themes to better understand the project itself and the development potential of the track.
First, let's look at the project financing and start to understand. At present, io has completed 2 rounds of financing totaling 40 million US dollars. The leading institution is hack vc. There are also investors participating in the financing, such as multcoin capital, okx ventures, animoca, etc. It is no exaggeration to say that it is an all-star lineup, plus the buff of list bn. What is the charm of the depin track?
Here we will interpret the concept of Depin first. Its full name is Decentralized Physical Infrastructure Network. The core concept of Depin is that participants contribute their own equipment or resources, and then they can get rewards through platform integration. These resources can include WiFi, storage, GPU, etc. In other words, as long as you provide services to others, you can get Tokens as a reward. As long as the project is related to this logic, it belongs to the category of DePIN track. What is it doing now?
io.net creates a network by aggregating GPU supplies from underutilized resources, allowing machine learning and startups to obtain nearly unlimited computing power at a very low cost. With the rise of AI, the development of the entire AI industry is like a flood, which will lead to a significant increase in GPU computing costs. Some AI companies will face a serious shortage of computing power and face a situation where supply exceeds demand, causing some problems, such as long waiting times, limited choices and high costs. Especially when AI deep learning requires processing large amounts of data and complex calculations, GPU resources have become a core competitiveness. io.net is designed to solve this pain point. The demand side here is like AI design platforms, they need GPU resources to save images and videos in real time, and there are also people who make AI integration tools, etc.
The advantage of IO is that it not only provides customers with 10%-20% off the price of centralized cloud service providers and instant online services without permission, but also provides computing power providers with io tokens as rewards, allowing users with idle gpu resources to rent out computing resources. The gpu resources provided here are from independent data centers, crypto miners, and consumer-grade gpus, which are retail investors. For example, the graphics card in your computer and Mac computers can provide computing power. As long as you provide gpu resources, you can get token rewards. For students who want to participate in mining through their home computers, the season has ended for two seasons. Now the third season is from June 1 to June 30. It will continue to develop in the future. For us small retail investors, I think the correct way to participate is to use Apple's m2. It is a good choice. It is easier to use than window. In the official io document, there are very detailed step-by-step operation steps and details that need to be paid attention to. After my actual operation, I think it is more demanding for the network situation. Even if the hardware meets the requirements, the network fluctuates greatly or the delay is high, it will affect your mining rewards.
Well, let's get to this point. Hey, we should all understand that the core of many institutional leaders' optimism is that the concept of depin plus the demand for the development of ai have created the current market. The token incentive model of depin has integrated the resources of gpu, and actually solved the pain points of ai companies. At present, from the perspective of market value, the entire depin sector has a market value of 26 billion. Compared with the big brother Nvidia in the traditional industry, it can be said to be a dwarf compared to a big witch, especially when it comes to depin for gpu resources. For example, rndr, the current leader of depin, also does rendering and gpu resources. Its current market value is 3.1 billion US dollars, but it is undeniable that there is strong market competitiveness here. According to my previous observations, the increase and rotation of the crypto ai sector often ferments with web2 news. AI coins that are closely related to the strength of ai will be particularly active, just like Nvidia's conference, the major update of open ai's chatgpt, etc. We can see if we can run out an Nvidia that belongs to crypto.
Now that we have learned about the introduction of the io project, let's take a look at the io token economic model. First of all, we can start with the practical value of the io token. As an ecological token, it should empower something. Here, io is simple and clear. There are three points, namely payment, pledge and governance. Payment here refers to the io token. Engineers can use io to deploy gpu clusters. The way to pay for the purchased gpu resources is through io tokens. If you pay with io, there is another advantage that you don’t have to pay a 2% usdc handling fee. The second is the pledge requirement. Users can participate in network security and obtain idle GPU reward shares by staking io tokens. Finally, there is governance. IO tokens enable holders to write proposals and vote, thereby participating in the governance of IO Grants DAO.
After understanding the practical value of tokens, you must get the token allocation of io. The total supply of io tokens is 800 million, the initial total is 500 million, and the initial circulation of tokens is 95 million. The 500 million here include the launchpool quota of bn, the unlocking of investors in the seed round and the A round, the initial core contributors, the ecosystem and the community. We can see from the token issuance schedule that 500 million tokens are released gradually, and the majority of investors have a three-year transfer restriction from the first distribution date at the end of the 13th month to the end of the 36th month.
$IO 4th time to lift the transfer restriction, and employees and core members, the io allocated to io.net company employees from the end of the 13th month to the end of the 48th month of the initial allocation date, the remaining 300 million tokens, will be issued and paid every hour to suppliers of gpu resources, as well as rewards for pledgers, for 20 years, the reward is a deflationary model, starting from 8% in the first year, and reducing by 1.02% per month, about 12% per year, until the io token cap of 800 million, and secondly, there is the expectation that there will be a destruction mechanism for io tokens, that is, the official team will adjust the price of io, repurchase part of the income from the market and destroy the tokens, which is a disguised benefit to the community
Finally, let’s talk about my views on the DePIN track. There are the following points
Innovation potential: DePIN has great innovation potential in multiple industries, including energy, logistics, transportation, agriculture, etc. For example, decentralized energy networks can realize peer-to-peer energy transactions through blockchain technology and improve energy efficiency; decentralized logistics networks can achieve cargo tracking and transparency through distributed ledgers, reducing fraud and delays.
Advantages of decentralization: Traditional centralized infrastructure has problems such as single point failure and information opacity. DePIN can improve the resilience and reliability of the system through a distributed network structure, while enhancing the transparency and security of data.
Economic incentives: DePIN uses blockchain technology to provide economic incentives to encourage participants to contribute resources and data. Through the token economic model, participants can receive corresponding rewards, which helps build a sustainable ecosystem.
Technical Challenges: Although DePIN has great potential, it still faces some technical challenges. For example, how to implement an efficient consensus algorithm to support large-scale decentralized networks, how to ensure data privacy and security, and how to solve the scalability problem of decentralized networks.
Regulatory environment: Decentralized infrastructure involves multiple industries and fields, so its development is also affected by the regulatory policies of various countries. With the popularization of blockchain technology, governments of various countries are constantly adjusting and improving their regulatory policies, which will have an important impact on the future development of DePIN.
Market prospects: With the continuous maturity of blockchain technology and the continuous expansion of application scenarios, the DePIN track is expected to become an important part of the future digital economy. Investors and companies can seize opportunities in emerging markets and achieve innovation and growth by actively participating in this track.
In general, the DePIN track is full of opportunities and challenges. It not only represents the expansion of the application of blockchain technology in the physical world, but also provides new possibilities for building a more efficient, secure and transparent infrastructure network. In the future, with the advancement of technology and the maturity of the market, DePIN is expected to be widely used in more fields.
