ASI has announced plans to launch an earn-and-burn mechanism to preserve the value of its tokens. The mechanism is scheduled to launch in December, but its continuity will depend on the ASI community. FET rose nearly 9% following the announcement.
Artificial Superintelligence Alliance (FET) posted double-digit gains on Thursday after announcing plans to burn up to 100 million tokens as part of an earn-and-burn mechanism scheduled to begin in December.
FET tokens surge as ASI plans to launch token writing program
In a move aimed at increasing the value of the token, the ASI Alliance announced the launch of a mechanism called the Earn-and-Burn initiative.
This mechanism acts as a deflationary strategy aimed at burning off some of the fees incurred by ASI services. The Alliance noted in Thursday's X article that it aims to reduce total FET supply from 2.8 billion to 2.7 billion throughout the earn-and-burn plan.
Token burning is the process of permanently removing a cryptocurrency token from circulation by sending it to an unusable or burner address. This measure aims to reduce the total supply of tokens, increase their rarity, and increase their value over time.
ASI said it plans to introduce this mechanism in December to coincide with the start of operations of ASI trains. ASI Train is a platform designed to develop advanced and specialized AI models and incentivizes user participation through FET token rewards.
However, the sustainability of the Earn-and-Burn initiative may depend on community engagement and overall growth within the ASI ecosystem.
Meanwhile, FET rose 9% following the announcement. The token has seen impressive gains over the past week, rising over 32% alongside other tokens in the AI sector.
Several other tokens in the artificial intelligence category also recorded gains over the past 24 hours, with RENDER, GRT, and NEAR rising 8%, 6%, and 7%, respectively.
