AI Tokens and Emissions: Managing Short-Term Risks Through Tokenomics Analysis
AI tokens are cementing their place in the crypto market, but understanding their emissions strategies is crucial for managing short-term risks.
Lets dive into the tokenomics of some notable AI projects and their upcoming supply expansions.
$TAO (Bittensor): High Emission Impact
Bittensor leads the pack with a projected 3.02% increase in circulating supply over the next month, adding $129.26 million in value to the market. This significant emission could introduce increased liquidity and selling pressure. Investors should closely monitor trading volumes and price movements to assess market appetite for absorbing the additional supply.
$AKT (Akash Network) and $AIOZ (AIOZ Network): Moderate Emissions
Both $AKT and $AIOZ are set to expand their circulating supplies by 0.82% ($7.92 million) and 0.59% ($7.37 million), respectively. These moderate emissions reflect a measured approach, balancing token dilution while maintaining a controlled release schedule, minimizing shocks to the market.
$FET (FetchAI) and $RENDER (Render Network): Conservative Strategies
FetchAI and Render Network exhibit the most conservative supply expansion strategies. $FET will see a modest 0.30% increase, equating to $14.15 million, while $RENDER plans a minimal 0.10% increase, adding $4.60 million. These strategies are designed to protect token value by limiting supply-side inflation, especially during periods of market volatility.
AI Tokens are here to stay, but knowing their emissions will help you manage short term risks.
Lets analyze tokenomics emissions strategies from known AI Tokens:
Emission over next 1 month (% cir. supply)
.$TAO (+3.02%) $129.26m$AKT (+0.82%) $7.92m$AIOZ (+0.59%) $7.37m pic.twitter.com/jhCYUATFKeTokenomist (prev. TokenUnlocks) (@Tokenomist_ai) December 16, 2024
$Virtual AI Agents: No Emissions, No Dilution
Virtual AI Agents stands out by maintaining 100% of its token supply in circulation since launch. With no planned emissions, this project eliminates dilution risk entirely, offering token holders predictable supply dynamics. However, this approach limits its ability to incentivize growth through future token releases.
Understanding these emissions strategies offers critical insights for navigating the AI token market and managing associated risks effectively.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Text source: NullTX