AI Project Adjusts Token Allocation Amid Market Manipulation Concerns

Swarms, a decentralized AI initiative, is set to modify its token distribution model, increasing the team’s allocation from 2% to 10% in response to concerns over market instability and manipulation.

Initially designed to promote decentralization, the limited allocation left the project exposed to external actors with significant token holdings who could influence price movements and governance decisions. The team now acknowledges that this approach, while well-intentioned, created vulnerabilities that threaten the project’s long-term sustainability.

By increasing the team’s token share, Swarms aims to establish a more secure and balanced ecosystem. The additional allocation will be used to accelerate AI research, fund staking rewards for long-term holders, and expand community-driven grants to attract skilled developers.

The team also sees this adjustment as a necessary step in protecting the project from speculative traders who may not be aligned with its mission.

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The proposed tokenomics revision will be put to a vote through the Swarms DAO, ensuring that token holders have the final say on its implementation.

The outcome will determine whether the project takes a more controlled approach to its token supply or continues under its original decentralized framework. The decision could have lasting implications for both governance and the project’s broader AI development roadmap.

Alexander Zdravkov