Decentralized artificial intelligence project Swarms (SWARMS) has announced that its team plans to increase its token allocation from 2% to 10%, citing concerns over market manipulation and token instability.
Swarms developers have admitted in a statement that the initial token distribution (keeping only 2% of the supply for the team) was a mistake. While the goal was to maximize decentralization, the decision left the project open to manipulation by large token holders and exchanges uncommitted to its long-term mission.
“This has caused instability, distraction, and threats to everything we are trying to build,” the Swarms team explained.
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To overcome these challenges, the team proposes a tokenomics adjustment that will allocate 10% of the total supply to the Swarms team. According to the developers, this change aims to:
- Accelerating AI research and development
- Providing staking rewards for long-term token holders
- Expanding community grants to attract top talent
- Strengthening the network against market manipulation
- Growing the ecosystem of AI pioneers supporting the project
The proposal will be voted on via the Swarms DAO ($1.96), allowing token holders to decide whether or not they approve the allocation change.
*This is not investment advice.
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