Delaware, US | 09:00 UAE GST, 11th December 2025 - io.net, the leading DePIN for AI compute, today announced a transition in its tokenomics to a model focused on stability and long-term network health. The fundamental redesign, tested by CryptoEcon Lab, enables io.net to align stakeholder incentives and sets a foundation for sustained value accrual and network reliability.
The existing tokenomics model effectively incentivised initial usage of the network, enabling io.net to process over $20 million in total earnings since launch in June last year. However, the current model limits long-term growth with fixed token emissions, creating constant inflationary pressure. As the io.net network transitions to an advanced phase of development and adoption, a new structure that reduces exposure to demand shocks and income volatility is necessary.
io.net today proposed the introduction of a unique dual-model tokenomic model called the Incentive Distribution Engine (IDE). Driven by demand, not supply, IDE implements a dynamic control system that continuously adjusts token release and payout levels in response to real network conditions. In place of a fixed emission model, IDE utilises separate token vaults, balancing network revenue and payout obligations through a sustainability ratio, automatically adjusting token emissions and burn in real time. The new model:
- Transitions from fixed emissions to dynamic control, keeping tokens in reserve when demand is high and releasing tokens when demand dips.
- Introduces a token burn mechanism, permanently burning at least 50% of the remaining revenue from a transaction after suppliers are paid for compute.
- Reduces the number of $IO tokens by 150 million, cutting the tokens in circulation by almost 20%.
- Stabilises USD-equivalent revenues for GPU providers, ensuring that compute is readily available at every point of market cycles with two counter- cyclical token vaults.
- Introduces sustainable deflationary mechanisms, routing a portion of client fees to purchasing $IO and burning them, enhancing long-term token value. IDE aligns all stakeholders around a single unifying goal: maintaining a sustainable network.
This novel approach to DePIN tokenomics brings benefits for all involved, reducing income volatility for GPU providers, incentivising real-world utility rather than speculation through deflationary mechanisms for investors, and building a more resilient compute network for users.
Gaurav Sharma, CEO of io.net, said:
“We’re at a crucial juncture for AI: continue with centralised hyperscalers underpinned by obscure, circular finance, or build decentralised, open markets for compute. Blockchain can be the solution, but DePINs in their current form are not fit for purpose. IDE introduces a unique approach, one that enables enterprises to adopt decentralized compute by avoiding a fixed emissions model, and is the foundation for the long-term growth of io.net. GPU providers, users and investors will benefit from the first reliable and open compute network, accurately aligning incentives. Following its implementation next year, IDE will enable startups, researchers and enterprises to develop and deploy AI systems on io.net for the long term.”
The new tokenomics proposal has been presented to the io.net community in a litepaper. There will be a feedback period until February 27, where community input will be actively reviewed and considered, and a final version will be released on March 31. The redesigned tokenomics will be implemented on the network in Q2 2026.