PAI3 Token: Powering a Decentralized AI Economy
Last updated
Last updated
PAI3 tokens are the native cryptocurrency of the PAI3 Network, serving as a versatile asset within the decentralized AI ecosystem. Acting as the primary medium of exchange, PAI3 tokens enable transactions on the PAI3 Marketplace and facilitate staking. Users can utilize these tokens to buy, sell, and trade AI models, datasets, and computing resources. Designed to nurture a user-driven ecosystem, PAI3 tokens aim to support the growth and sustainability of the decentralized AI platform.
The total supply of PAI3 tokens is capped at 3,141,592,653, with an initial distribution of 1,162,389,282 tokens (37%). Unlike many other crypto assets, PAI3 tokens have no vesting requirements and will not be sold via private or public sales, ensuring a fair, community-driven distribution. The remaining 63% of tokens will be gradually emitted over 25 years to reward network contributors and governance participants. Following the launch, an AI agent will dynamically manage the token’s value to maintain attractiveness while preventing price instability. Notably, PAI3 tokens are free from vesting requirements and will not be sold or claimed.
Furthermore, PAI3 tokens play a crucial role in the platform’s governance, empowering holders to participate in decisions regarding the Mesh’s development and policies. They also incentivize active participation in the network, enabling users to earn tokens by contributing computing power, sharing data, or running nodes within the PAI3 ecosystem. PAI3 tokens will adhere to the ERC20 standard.
Overall 25 years, PAI3 tokens will be allocated distributed across multiple pools: Node and staking holders (30%), Community Pool (20%), Token liquidity (10%), Team (15%), PAI3 Foundation (15%), and Seed funding (10%). 15% of total supply is allocated to PAI3 Node operators as grants over first 3 years and additionall 15% of total supply is allocated as incentives to node stakers over next 25 years.
After initial supply, the remaining 197,920,337 PAI3 tokens will be allocated to the Node and Staking rewards (32%), Community pool (24%), Token Liquidity (10%), Team (17%), and PAI3 Foundation (17%).
63% of PAI3 tokens (n=197,920,337) will be distributed over a 25-year emission schedule. New PAI3 tokens will be emitted with decreasing emissions each year until all tokens have been added into circulation. The emission protocol is designed so that new tokens will be released weekly. Each year, emissions rate will halve every 4 years until issuance is halted at 314,159,264 PAI3 tokens.
The PAI3 tokenomics operates on a 4-year halving schedule after the first halving event, creating a deflationary model to ensure long-term value. Every 4 years, node rewards and emissions rates are halved, reducing token supply and increasing scarcity.
Burn Rate: Revenue from nodes, agents, data, and marketplace activity is collected into a community pool. Starting at 1% during the first halving, the burn rate increases incrementally to 5% by the fifth halving, automatically reducing supply. The PAI3 community governs this rate, ensuring it stays above a minimum threshold.
Emission Reductions: Emissions halve every 4 years, with monthly distribution set at 1/12th of annual emissions. After the first halving, the PAI3 community can change the emissions allocations, but will require a 75% supermajority vote, balancing adaptability with deflationary goals.
This combination of halving and burn schedules establishes a robust deflationary framework, enhancing token scarcity while supporting sustainable growth and community-driven governance.
The PAI3 DUNA and its protocols are governed by a decentralized model, empowering PAI3 token holders to participate directly in decision-making processes. This governance structure is built on the principles of transparency, fairness, and inclusivity, using a governance protocol based on Quadratic Voting system (QV) (Dimitri 2022; Buterin, Hitzig, and Weyl 2019) to ensure all voices are heard proportionately. The key areas that require governance may include Platform Development, Tokenomics Adjustments, and Community and ecosystem growth.
To create a balanced and democratic governance structure, the PAI3 Foundation will use a QV-based system, where each voter power will determined by a random snapshot before a vote that are valued quadratically depending on their PAI3 tokens holdings. Any token holder can submit proposals for a vote. Proposals are reviewed and discussed by the community before voting begins. Proposals that reach a majority under the quadratic voting rules are automatically executed via smart contracts, ensuring transparency and immutability. This method prevents large stakeholders from disproportionately dominating decisions and encourages more nuanced expressions of preferences by all members. Voting AI agents will be trained to identify improper voting and maintain fairness.
All voting records and decisions are recorded on the blockchain, providing an immutable and auditable ledger of governance actions. Smart contracts automate decision execution, ensuring that all processes remain transparent, secure, and tamper-proof.
By implementing a governance model rooted in Quadratic Voting, PAI3 ensures equitable decision-making and positions itself as a truly decentralized AI platform, where all stakeholders have a meaningful role in shaping the PAI3 Network and AI’s future.
