Wow, IO.NET is going to be listed on Binance! On June 11th at 20:00 (ET), IO.NET (IO) will open trading market, and IO/BTC, IO/USDT, IO/BNB, IO/FDUSD and IO/TRY trading pairs are available! I heard that IO.NET has raised $40 million through two rounds of private placements, and the latest valuation has reached $1 billion!
Web3+Depin+AI may be the biggest hot spot in this bull market, and IO.NET is a star project among them! Today we will analyze what advantages IO.NET has that can make it the new leader in the track?
I think the biggest competitive advantage of IO.NET is its niche advantage, or first-mover advantage. According to official data, IO.NET has more than 40K GPU clusters, more than 5600 CPUs, and more than 69K Woker Nodes. It takes less than 90 seconds to deploy 10,000 GPUs, and its price is 90% cheaper than its competitors. It is valued at $1 billion. IO.NET not only provides customers with 10%-20% off the price of centralized cloud service providers and instant online services without permission, but also provides additional startup incentives for computing power providers through the upcoming IO tokens, helping to achieve the goal of connecting 1 million GPUs!
Moreover, compared with other DePIN computing projects, IO.NET focuses on GPU computing power, and the scale of its GPU network is more than 100 times that of similar projects! IO.NET is also the first in the blockchain industry to integrate the most advanced ML technology stack (such as Ray clusters, Kubernetes clusters, and giant clusters) into GPU DePIN projects and put them into large-scale practice, which makes it not only leading in the number of GPUs, but also in the ability of technology application and model training!
As IO.NET continues to develop, if the GPU capacity can be increased to 500,000 concurrent GPUs across the entire network to compete with centralized cloud service providers, it will be possible to provide services similar to Web 2 at a lower cost. There will also be an opportunity to establish close cooperation with major DePIN and AI players (such as Render Network, Filecoin, Solana, Ritual, etc.), gradually establish its core position in the field, and become the leader and settlement layer of the decentralized GPU network, bringing vitality to the entire Web3+Depin+AI ecosystem!
The demand for AI computing is growing very fast now, 2.5 times the supply, and the demand for AI computing will double every 3.4 months, so the gap between supply and demand is getting bigger and bigger. In 2023, the revenue of data centers that provide computing power for AI needs exceeded $100 billion, but even in the most conservative case, the demand for AI exceeds the supply of chips.
Traditional cloud computing can no longer meet this demand, but this also brings great opportunities. The total market value of the world's three largest centralized cloud service providers (Amazon, Google, and Microsoft) exceeds 7 trillion US dollars, and a large part of this value comes from the rise of AI. The demand for computing is so high that China imported more chips than oil last year. Computing has been called "the new oil" and the cost is also very high. For example, Chad GPT's daily operating costs exceed 700,000 US dollars. With the launch of OpenAI's new text-to-video generation platform Sora, these costs will continue to rise.
Despite the continuous innovation in AI, computing resources are still in short supply. IO.NET fills this gap with an innovative solution called decentralized cloud computing. IO.NET's infrastructure is worth more than $3.5 billion, and it has more enterprise-level GPU clusters than Amazon AWS, Google Cloud, and Microsoft Azure combined. IO.NET provides on-demand computing services at a fraction of the cost of traditional cloud service providers, just to bring AI to users around the world in a better, faster, and cheaper way.
At a time of high interest rates and lack of cash flow, new data centers that can accommodate this hardware require large upfront investments. At the heart of the problem is that production of advanced chips like NVidia's A100 and H100 is limited. While GPU performance continues to increase and costs are steadily decreasing, the manufacturing process cannot be accelerated because shortages of raw materials, components, and production capacity limit the rate of growth.
Even though AI is promising, the physical footprint required to support it is increasing every day, which significantly increases the demand for space, electricity, and cutting-edge equipment. Fortunately, IO.NET has opened up a way for us so that computing power will no longer be constrained by these constraints.
IO.NET is a classic example of DePIN in the real world: by using token incentives to structurally reduce the cost of acquiring supply-side resources, it reduces costs for those who ultimately demand GPU computing power. It pools idle GPU resources distributed around the world into a shared pool for use by AI developers and companies. Now, this network is powered by thousands of GPUs from data centers, mining farms, and consumer devices.
IO.NET also has unique advantages. Its network is like an ant colony. All worker nodes work in coordination like ants to complete tasks continuously. The IOG framework allows engineers to use open source computing power, which means that the Python code you run on your laptop can automatically run in the GPU Internet. This network can not only provide services to more than 100 million users with extremely low latency, but also coordinate tasks distributed in thousands of GPU clusters in 139 countries, creating a cloud service for ML model inference.
IO.NET uses the open source core technology rayio. Without it, many AI-based products such as Chat GPT, Uber, Instacart, etc. would not exist. IO.NET takes this technology to a new level and builds the world's most advanced, scalable and secure distributed computing framework.
At the IO.NET 2024 Summit, Aline Almeida, senior vice president of engineering at io.net, demonstrated how to use the IUG package to train a computer vision classification model and adjust hyperparameters to improve accuracy. By connecting to an IOG super cluster with 1,000 GPUs, io.net can complete 1,000 trainings with different configurations in 1 hour instead of 41 days. This shows the power of distributed computing, which is not only fast but also 90% cheaper.
At the summit, Aline also shared how IO.NET leads the future of Web3 through innovative design and builds the world's largest AI computing network. He said: "Technology itself cannot shape the future. It is people who really shape the future, and design is the core of connecting people and technology. IO.NET is committed to providing a high-quality user experience, allowing engineers to easily deploy the world's most advanced clusters. IO.NET's Io Cloud platform has 100 times more GPUs than major crypto market players, almost as many as Google Cloud, Amazon AWS and Microsoft Azure. Engineers can deploy a cluster with 20,000 GPUs in 90 seconds, providing end-to-end solutions from model training to inference."
Decentralization allows IO.NET to maintain a light asset operation and reduce the marginal cost of serving any specific customer to almost zero. At the same time, it can establish direct relationships with the demand and supply sides of the market, and can serve the thousands of people who need access to GPUs to build competitive AI products. Everyone will interact with it in the future.
As Multicoin Capital, a participant in IO.NET's $30 million Series A financing, said: "We are very pleased to invest in IO.NET. The IO.NET team has demonstrated strong execution capabilities. Now, the network has aggregated tens of thousands of distributed GPUs and provided more than 57,000 hours of computing time for AI companies. We are happy to work with them to help the AI revival in the next decade."
According to ROOTDATA data, IO.NET has completed its second round of financing, with the latest valuation of $1 billion and a total financing amount of $40 million, including:
On May 1, 2023, it completed a $10 million seed round of financing;
On March 5, 2024, it completed a US$30 million Series A financing round, led by Hack VC. Other investors included Multicoin Capital, Delphi Digital, Foresight Ventures, Animoca Brands, Continue Capital, Solana Ventures, Aptos, LongHash Ventures, OKX Ventures, Amber Group, SevenX Ventures and ArkStream Capital.
Simply put, IO.NET is a distributed GPU system based on Solana, Render, Ray, and Filecoin, which aims to use distributed GPU resources to solve computing challenges in the fields of AI and machine learning.
IO.NET solves the problem of insufficient computing resources by aggregating underutilized computing resources, such as excess GPUs from independent data computing centers, cryptocurrency miners, and crypto projects such as Filecoin and Render, allowing engineers to obtain a large amount of computing power in an easily accessible, customizable and low-cost system.
In addition, IO.NET introduces a distributed physical infrastructure network (depin), combining resources from various providers to allow engineers to obtain large amounts of computing power in a customizable, cost-effective, and easy-to-implement manner.
io cloud now has more than 95,000 GPUs and more than 1,000 CPUs, supports fast deployment, hardware selection, geographic location, and provides a transparent payment process.
IO.NET's decentralized resource aggregation is one of its core features, which allows the platform to utilize globally dispersed GPU resources to provide the necessary computing support for AI and machine learning tasks. The goal of this resource aggregation strategy is to optimize resource usage, reduce costs, and provide wider accessibility.
Token Valuation
The IO.NET token economic model will have an initial supply of 500 million IOs at the time of creation, divided into five categories: Seed Investors (12.5%), Series A Investors (10.2%), Core Contributors (11.3%), R&D and Ecosystem (16%), and Community (50%). As IOs are issued to incentivize network growth and adoption, it will grow to a fixed maximum supply of 800 million within 20 years.
The rewards use a deflation model, starting from 8% in the first year, and decreasing by 1.02% per month (about 12% per year) until the IO cap of 800 million is reached. As the rewards are distributed, the share of early supporters and core contributors will continue to decrease, and when all the rewards are distributed, the community's share will grow to 50%.
Its token functions include allocating incentives to IO Workers, rewarding AI and ML deployment teams for continued use of the network, balancing some demand and supply, pricing IO Worker computing units, and community governance.
In order to avoid payment problems caused by IO price fluctuations, IO.NET has developed a stablecoin IOSD, which is pegged to the US dollar. 1 IOSD is always equal to 1 US dollar. IOSD can only be obtained by destroying IO.
In addition, IO.NET is also considering some mechanisms to improve network functionality. For example, IO Workers may be allowed to increase the probability of being rented by pledging native assets. In this case, the more assets they put in, the greater the probability of being selected. In addition, AI engineers who pledge native assets can use high-demand GPUs first.
IO tokens are mainly used by two groups, demanders and suppliers. For demanders, each computing job is priced in USD, and the network will hold the payment until the job is completed. Once a node operator configures a reward share in USD and tokens, all USD amounts are directly distributed to the node operator, and the share distributed to tokens is used to burn IO coins. Then, all IO coins minted as computing rewards during this period are distributed to users according to the USD value of its coupon tokens (computing points).
For suppliers, there are availability rewards and computing rewards. Among them, the computing reward is for jobs submitted to the network. Users can choose the time preference "duration of cluster deployment in hours" and then receive cost estimates from the io.net pricing oracle. The availability reward is that the network will randomly submit small test jobs to evaluate which nodes run regularly and can accept jobs from demanders well.
It is worth mentioning that both the supply side and the demand side have a reputation system that accumulates points based on computing performance and network participation, and then receives rewards or discounts.
In addition, IO.NET has set up an ecological growth mechanism, including staking, invitation rewards and network fees. IO coin holders can choose to stake IO tokens to node operators or users. Once staked, the staker can receive 1-3% of all rewards received by participants. Users can also invite new network participants and share part of the new participants' future income. The network fee is set to charge 5%.
We don’t know the exact revenue data of the projects in the track, so we can’t make an accurate valuation. We mainly compare it with Render, a project that is also AI+DePIN like IO.NET, for your reference.
Render Network is now the leading project of decentralized GPU rendering solutions in the AI+Web3 track, with a total GPU resource of 11,946 and a current market value of $3 billion (FDV $5 billion); IO.NET has a total GPU resource of 461,772, which is 38 times that of Render, and is currently valued at $1 billion. For both IO.NET and Render, their core key capabilities are decentralized GPU computing power, so from the core comparison dimension of GPU supply, IO.NET's market value after listing is likely to exceed that of Render, or at least not lower than it.
The Frames Rendered of Render Network in 2022 is 9,420,335, and the GMV is 2,457,134 US dollars. Now, the Frames Rendered of Render Network is 31,643,819. By this calculation, the total GMV is about 8,253,751 US dollars.
Compared with IO.NET's 4-month GMV of 400,000, if IO.NET grows at an average rate of 400,000 GMV every 4 months, its 12-month GMV will be 1,200,000. If IO.NET wants to reach the current GMV of Render Network, there is still 6.8 times of growth space. Now IO.NET is valued at 1 billion US dollars. Combining the above analysis, IO.NET's market value in the bull market cycle is expected to reach more than 5 billion US dollars!
Basic information about $IO tokens:
1. Fixed supply:
The maximum supply of $IO tokens is fixed at 800 million. This supply is set to ensure the stability of the token value and prevent inflation.
2. Distribution and incentives:
Initially, 300 million $IO tokens will be issued. The remaining 500 million tokens will be issued as rewards to suppliers and their shareholders, a process that is expected to last 20 years. Rewards are released hourly and follow a decreasing model (starting at 8% in the first year, decreasing by 1.02% per month, or about 12% per year) until the total issuance cap of 800 million tokens is reached.
3. Destruction mechanism:
$IO uses a programmatic token destruction system, which uses the revenue generated by io.net from the IOG network to buy and destroy $IO tokens. The destruction mechanism will adjust the amount of destruction based on the price of $IO, which can create deflationary pressure on the token.
4. OTC trading status:
On May 8, Aevo launched the io.net (IO) Pre-Launch, and later launched the 55th new coin mining project on Binance. The price broke through US$4.3 and is currently reported at US$4.36. The 24-hour trading volume is US$16,000, and the 24-hour increase has reached 14.39%.
At the same time, IO is also listed on the Pre-Market of Whales Market, and the total transaction volume of IO is the highest in the Pre-Market, with 5.93 million US dollars. Now, on the Whales Market platform, the price of IO is temporarily reported at 4.95 US dollars, and the 24-hour increase is 27.6%.
The market sentiment is very high now, and it has caught up with the BTC bull market. It is estimated that after it is officially listed on Binance, there will be another wave of strong pull-ups, perhaps it can double or even several times!
The emergence of IO.NET fills the gap in the field of decentralized computing and provides users with a new and promising way of computing. With the continuous development of fields such as artificial intelligence and machine learning, the demand for computing resources is also increasing. IO.NET has proposed an innovative solution: building the world's largest AI computing cloud by leveraging underutilized resources in data centers, cryptocurrency mines, and consumer GPUs. This strategy promises to provide almost unlimited computing power at a fraction of the cost of traditional methods, solving the critical gap between the rapid growth in demand for computing resources and limited supply.
IO.NET's innovation can not only alleviate the current resource shortage problem, but also support the continuous development of AI technology and ensure the continuous advancement of digital capabilities. IO.NET is not only a role model for technological innovation, but also a model for the application of blockchain in real-world problems. It is also one of the most specific software and hardware large-scale AI network training projects. AI is also the leading core in the field of high-tech. If the adoption rate of IO.NET increases in the future, it may provide a foundation for more universal solutions for the entire AI market, and its market value may exceed ChatGPT!
Therefore, IO.NET has high market potential and value. In the eyes of many people, IO.NET is a rare high-quality investment target. Let us continue to follow up and observe and study it carefully!
