Decentralized GPU Rental Platform io.net Introduction, Targeting the AI Computing Market
What is the decentralized AI computing resource platform io.net? The IO token is expected to be launched on Solana in the near future. What are the advantages and challenges of the DePIN project that market is paying close attention to? This article will provide a detailed analysis and introduction.
This article is not investment advice.
Table of Contents
Introduction to io.net
Founded in February 2023, io.net is a decentralized GPU allocation infrastructure built on the Solana network, aiming to provide more efficient and flexible computing power for machine learning, making model training computations more scalable for development teams.
Within just a year of development, due to its alignment with industry trends and successful team development, io.net has already secured a $30 million investment in March this year. The investors include prominent institutions such as Hack VC, Delphi Digital, Solana, Aptos, Foresight Ventures, and ArkStream Capital, which have brought more attention to this DePIN project.
Issues Addressed by io.net
Significant Gap in the Global GPU Market
In recent years, due to the rapid growth of the AI industry, existing cloud computing services are insufficient to meet the demand for machine learning and AI-related computations, leading to a global shortage of computing resources.
AI development teams are facing a seller's market, indirectly resulting in their reliance on cloud providers for GPU hardware specifications, location, security levels, latency, and other options. Buyers have little to no choice, let alone the ability to adopt custom requirements that cannot use mainstream GPU models.
The existing CPU and GPU computing capabilities and quantities are insufficient to meet the demands of machine learning applications. Given the longer supply cycle of GPUs, this problem is unlikely to be resolved quickly.
Rising Hardware Barrier for AI Startups
Due to the scarcity of computing resources and the increasing competition in AI models, small companies and teams without substantial funding cannot afford to purchase large quantities of computing equipment and management costs, which may amount to hundreds of thousands of dollars per month. This leads to low training efficiency and long-term challenges in maintaining competitiveness.
The market requires a more flexible way of allocating computing resources.
Design Philosophy of io.net
io.net aims to address the aforementioned issues by utilizing underutilized GPU resources outside of accessing cloud services. These computing resources may come from:
- Independent data centers: There are thousands of independent data centers in the United States alone, but the average utilization rate is only 12% to 18%.
- Cryptocurrency miners: After Ethereum switched to Proof of Stake (POS), some miners have idle capacity.
- Consumer-grade GPUs: Consumer-grade GPUs account for 90% of the total supply, but most resources are hidden in consumers' homes and not fully utilized.
Overall, the io.net team estimates that these computing resources can provide more than ten times the additional computing resources. Therefore, the team's goal is to build a service framework that can effectively utilize these resources.
Supply Side: Incentivizing Models to Attract the Market to Rent Idle Computing Resources
io.net allows users with idle GPU resources to rent out their computing resources through a cryptocurrency incentive model. These computing resources will be integrated into the decentralized network of io.net, allowing development teams in need to access and customize the required computing resources freely, quickly, and without permission.
The rental costs will be determined based on GPU specifications, brand, security, compliance certification, etc. However, the team mentioned that through its integration capabilities and unique pricing mechanism, it can be 90% cheaper than traditional cloud providers, providing an advantage in renting computing resources efficiently.
Demand Side: Customers Can Utilize Computing Resources Effectively Through Cluster Segmentation
Clients renting computing resources can maximize their own needs and efficiency by choosing from a variety of existing cluster options or creating unique filtering criteria for clusters. For example, they can select a computing resource cluster supplied entirely by green energy to meet ESG goals or choose computing resources in Taiwan to reduce costs and speed up connections.
Furthermore, unlike traditional cloud providers like AWS, io.net has no contractual restrictions and does not require permission. Users can access and deploy clusters within 90 seconds.
Potential Risks of io.net
It remains uncertain whether io.net can be widely adopted in the mainstream market. Both computing resource suppliers and renting teams are relatively unfamiliar with this model, and its implementation is expected to face certain challenges.
Additionally, there may be many speculators and non-compliant participants involved in the future. For example, io.net recently stated that it will prohibit virtual GPU suppliers from participating. Effectively managing the incentive model to drive the service without causing adverse effects poses a significant challenge for the io.net team.
io.net Token Economics
io.net uses blockchain as the settlement network for its incentive layer, enabling the use of token incentive models to create such decentralized business models that integrate idle computing resources. The native token for io.net's project is IO, although it is not officially launched yet, so detailed information and data may change.
Basic Information on IO Token
- Name: IO Coin
- Mainnet: Solana SPL
- Address: Not yet online, expected to be launched soon
- Total Supply: 800 million tokens
Utility of IO Token
- Token for GPU Renters: Development teams renting GPU clusters using IO to pay for computing resources will not incur fees, unlike when paying with USDC, which requires a 2% fee.
- GPU Supplier Staking Requirements: Suppliers of computing resources need to stake a certain amount of IO tokens to receive idle rewards in IO tokens when their resources are not rented out. Specific quantities await further official information.
- Token Staking: Anyone holding IO tokens can stake them in protocols on Solana to earn staking rewards.
IO Token Distribution Model
According to the io.net whitepaper, the total supply of IO tokens is 800 million. Upon release, 500 million tokens will be unlocked, with the remaining tokens being unlocked hourly for GPU suppliers and token stakers. The release rate is 8% in the first year, decreasing by 1.02% monthly, with distribution expected to be completed in around 20 years.
io.net is expected to have a token repurchase and burn mechanism, where a portion of the team's income will be used to repurchase IO tokens on the market for burning, indirectly rewarding token holders.
Further details and specifics require additional information from the official team.
IO Token Airdrop Opportunities
As the team has indicated an upcoming token issuance, and the only current participation method is renting or leasing computing resources, regular users may consider renting out the resources of their home computers to potentially participate in io.net's airdrop activities.
This article does not constitute investment advice.
Solana Seizes DePIN Narrative
Solana has recently garnered significant market attention, not only in meme coins and NFTs but also in the community's belief that, given its high-performance network, DePIN may become Solana's next growth catalyst, demonstrating Solana's efforts in this area.
In addition to nurturing io.net, many projects, including Helium, Render Network, and Hivemapper, have joined its ecosystem, either through development or commercial development efforts.
Decentralized network Helium Mobile introduces a 5G unlimited plan in the US, cheaper than Taiwan Mobile
AI pioneer project Render Network RNDR upgrades to the Solana network
Whether through in-house nurturing of teams in the ecosystem or business development efforts to attract existing projects, Solana undoubtedly has a place in the DePin field.