Io net’s New Staking Program Attracts $1.5 Million in First Week

Io net’s New Staking Program Attracts $1.5 Million in First Week

Io net (IO), a pioneering project in the decentralized physical infrastructure network (DePin) space, recently launched its staking program, and within a mere week, it has successfully attracted approximately $1.5 million in stakes.

This staking initiative is a crucial part of Io net’s strategy to bolster both the security and efficiency of its network. The program requires GPU and CPU suppliers to lock in a specific number of IO tokens, determined by their devices’ capacity and contribution to the network.

Why Did Io.net Launch Staking?

According to data from Solscan, this new staking program, designed to incentivize GPU providers, has already accumulated around 654,940 IO tokens. The program sets a minimum stake of 200 IO per GPU. For devices equipped with multiple GPUs, the required staking amount increases based on the number of units and their respective earning multipliers.

For instance, a device with eight H100 GPUs, each with an earning multiplier of 10, would need to stake a significant 16,000 IO. In contrast, a device with four 4070 GPUs, each with a multiplier of 0.25, would only need to stake 800 IO.

Io net explained that requiring suppliers to stake IO tokens promotes long-term commitment to their platform and incentivizes good behavior within the network.

Additionally, each supplier’s device is managed by a dedicated smart contract, ensuring the security of the staked IO tokens. Block rewards are distributed fairly and transparently, with rewards accrued to the Solana wallet associated with the supplier’s account. These rewards can be claimed periodically.

When a supplier chooses to unstake their tokens, a 14-day cooldown period is triggered, during which the tokens no longer count toward the minimum staking requirement for block rewards. This cooling-off phase is essential for maintaining network stability and preventing any potential exploitation of the reward system.

Io.net has also implemented a robust security protocol that includes a slashing mechanism for suppliers who engage in activities such as spoofing or compromising data integrity.

“Slashed IO is subject to a one-month reconsideration process. If your device stake is slashed, you can open a support ticket. IO support will provide technical evidence explaining why the device was flagged for spoofing or other malicious behavior,” Io.net stated.

Potential Supply Shock?

Deebs DeFi, a pseudonymous analyst in the decentralized finance space, suggested that the staking program might lead to a supply shock. He estimated that it could reduce the circulating supply of IO tokens by about 10%. Based on his calculations, GPU providers might bring in a purchase volume worth nearly $17 million if all providers buy and stake the minimum required IO.

The market seems to share this optimistic view, as the price of IO tokens has surged by over 30% in the past week. The upcoming Nvidia quarterly report on August 28, which could impact both AI and DePin tokens, adds further anticipation.

However, it’s important to note that despite recent gains, the DePin token has faced significant challenges, with its value dropping about 65% from its peak in June. Concerns also remain regarding potential sell-offs as new supply enters the market. Currently, the circulating supply of IO tokens is 95 million, while the maximum supply stands at a staggering 800 million.