io.net Ties Token Burns to Network Revenue, Targets Up to 12M IO Tokens Over the Next Year
io.net has introduced a revenue-linked token burn designed to reduce IO's circulating supply while offering more predictable economics for infrastructure providers. The decentralized GPU network said the approach could eliminate as many as 12 million IO tokens over the next 12 months.
The first burn was executed on June 11 to coincide with io.net's third anniversary. Going forward, the company said burns will be funded by actual network revenue generated from customer usage, rather than by issuing new tokens.
Under io.net's Incentive Dynamic Engine (IDE), at least 50% of post-payout network revenue received in IO tokens will be permanently burned. Based on current revenue levels and its commercial pipeline, io.net estimates the mechanism could remove up to 12 million IO tokens in its first year.
The change comes as io.net points to accelerating enterprise adoption. The company disclosed an $8 million enterprise agreement, its largest to date, which it estimates contributes about $650,000 in monthly on-chain network earnings. io.net added that several additional enterprise deals are in advanced negotiations.
On the product and usage front, io.net said it has become the largest DePIN-based inference provider on OpenRouter, a routing platform developers use to access AI models. The network reportedly processes more than 4 billion inference tokens per day, positioning it as a decentralized alternative competing for AI workloads typically handled by centralized cloud providers.
io.net also tied the rollout to broader momentum in AI compute demand, citing industry commitments exceeding $500 billion for AI infrastructure across 2025&2026. The company argued that hyperscalers' capacity constraints and pricing dynamics leave room for decentralized networks that can flexibly supply GPUs.
IDE is also intended to address a common challenge for tokenized infrastructure networks: supplier earnings volatility. Instead of paying providers in a fluctuating token amount, io.net links payouts to a stable U.S. dollar value. Reserve mechanisms are designed to buffer market swings so providers can receive predictable earnings even if IO's price declines.
io.net cited independent testing by tokenomics firm CryptoEcon Lab. According to the company, simulations that modeled a 55% drop in demand alongside a 50% decline in token price still showed stable supplier returns.
"Most token economies in our space are still built around the hope that prices go up. Ours is built around the certainty that people are paying to use the network. That's a fundamentally different foundation," io.net CEO Gaurav Sharma said.
Looking ahead, io.net said it is developing an Agent Cloud that would allow AI agents to autonomously source and manage compute resources on the network, part of its broader push toward a self-sustaining, on-chain compute economy supported by decentralized providers globally.
Key takeaways:
- New burn mechanism (IDE): at least 50% of post-payout IO token revenue will be burned.
- Potential impact: up to 12 million IO tokens removed in the first year.
- Commercial momentum: $8M enterprise deal; about $650k in monthly on-chain revenue.
- Usage: more than 4 billion inference tokens processed daily on OpenRouter; largest DePIN inference provider on the platform.
- Supplier protections: USD-linked payouts and reserve buffers; stress tests indicate resilience under sharp demand and price declines.