What are AI Tokens?

September 10, 2024

AI tokens, a novel intersection of Artificial Intelligence (AI) and Web3, have gained significant attention recently. This interest surged following reports of major tech companies, such as Apple and Nvidia, considering investments in OpenAI, and Venture firm Thrive Capital’s $1 billion funding infusion into OpenAI.

What are AI Tokens?

AI tokens are a type of cryptocurrency tied to Artificial Intelligence (AI) projects. Unlike regular cryptocurrencies like Bitcoin, AI tokens are used specifically within AI-related platforms or protocols. These tokens are often built on blockchain systems such as Ethereum or Cardano, and they help facilitate AI activities within these networks.

How are AI Tokens Used?

Decision-Making in AI Projects: People who own AI tokens can participate in important decisions regarding the direction of the AI projects. This gives them a say in how the project is managed and developed.

Payment Method: AI tokens can be used as currency within AI ecosystems, allowing users to pay for services or access specific AI tools.

Supporting AI Initiatives: AI tokens play a role in online marketplaces where AI services are traded. They are also used in Decentralized Autonomous Organizations (DAOs), which are groups that operate without central leadership.

Examples of AI Tokens

Some popular AI tokens include:

Injective (INJ)
Render (RENDER)
Theta Token (THETA)
Oasis Network (ROSE)
SingularityNET (AGIX)

Each of these tokens supports different AI-based platforms or services.

What is the Future of AI Tokens?

Investment companies like VanEck predict a strong future for AI tokens. They believe that public blockchain systems, that host these tokens, will be crucial for the future of AI. By 2030, AI-driven cryptocurrency projects could generate $10.2 billion in yearly revenue. This makes AI tokens an exciting part of the financial world.