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

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.