ASI's FET rallies following earn-and-burn mechanism launch

ASI announced its plan to launch an earn-and-burn mechanism to help sustain the value of its token.
The mechanism is set to launch in December, but its continuity will be subject to the ASI community.
FET is up nearly 9% following the announcement.

The Artificial Superintelligence Alliance (FET) saw double-digit gains on Thursday after it announced plans to burn up to 100 million tokens as part of its Earn-and-Burn mechanism, set to begin in December.

FET token surges as ASI plans to begin token burning program

In a move aimed at increasing the value of its token, the ASI alliance announced that it would launch a mechanism called the Earn-and-Burn initiative.

The mechanism will function as a deflationary strategy aimed at burning a portion of fees generated by ASI services. The Alliance noted in an X article on Thursday that it aims to reduce FET's total supply from 2.8 billion to 2.7 billion during the entire Earn-and-Burn initiative.

Token burning is a process in which cryptocurrency tokens are permanently removed from circulation by sending them to an unusable or burner address. This action intends to reduce the total supply of a token, making it scarcer and driving its value higher over time.

ASI noted that it plans to roll out the mechanism in December, along with the launch of the ASI train. ASI Train is a platform designed to develop advanced, specialized AI models, incentivizing user participation through FET token rewards.

However, the continuity of the Earn-and-Burn initiative will likely depend on the community's engagement and the overall growth within the ASI ecosystem.

Meanwhile, FET is up 9% following the announcement. The token has seen remarkable gains in the past week, rising over 32% alongside other tokens in the AI sector.

Several other tokens in the artificial intelligence category also recorded gains in the past 24 hours, with RENDER, GRT and NEAR rising 8%, 6% and 7%, respectively.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.