Bittensor Faces Bearish Pressure Amid Market Volatility

On December 11, 2025, io.net unveiled its groundbreaking Incentive Dynamic Engine (IDE), a significant overhaul of its tokenomics aimed at fostering a resilient and open market for AI model training and deployment hardware. Since its inception in June 2024, io.net has facilitated over $20 million in compute leases, providing affordable access to AI innovators and researchers through its extensive GPU network. The IDE is designed to align the incentives of all stakeholders, ensuring reliable income for hardware providers and stable pricing for users, thereby enhancing the long-term health of the network. The previous tokenomics model of io.net faced criticism for creating inflationary pressures and leaving the network susceptible to market fluctuations. Concerns regarding the circular nature of hardware and compute agreements in AI development have hindered further investment. The introduction of the IDE aims to establish a trustworthy market that directly connects hardware providers with users, allowing for confident capital deployment by investors and manufacturers. This new model is expected to mitigate the risks associated with decentralized physical infrastructure networks (DePINs), which have struggled to meet the demands of the AI sector. Gaurav Sharma, CEO of io.net, emphasized the importance of transitioning from centralized hyperscalers to decentralized, open markets for compute. The IDE is positioned as a pioneering solution that will enhance the growth of io.net by providing a reliable and transparent compute network. The launch of the IDE will not only stabilize income for GPU providers but also promote real-world utility for investors, ultimately creating a more robust compute network for users. The io.net community will have the opportunity to provide feedback on the new tokenomics proposal until February 27, with a final version set to be implemented in Q2 2026.

Filecoin (FIL) has experienced a significant decline of 7.3% over the past 24 hours, dropping from $1.48 to $1.38. This downturn has pushed the token below the crucial support level of $1.43, establishing a new support at $1.37. The recent selloff has been attributed to a broader liquidation in decentralized physical infrastructure tokens, which has negatively impacted the entire sector. CoinDesk Research's technical analysis indicates that Filecoin has been in a downtrend, marked by consecutive lower highs since its peak at $1.55 on December 10. The trading volume surged to 10.6 million tokens during this breakdown, highlighting the intensity of the market's reaction. The failure of Filecoin to reclaim the resistance level at $1.52 has intensified selling pressure, with an 85% spike in trading volume confirming institutional selling as the price broke through the critical support at $1.43. Following this, the price stabilized near session lows around $1.37, suggesting a temporary exhaustion of selling momentum. The current technical outlook indicates that if the support at $1.37 fails, the price could target the downside range of $1.30 to $1.35. Meanwhile, the broader cryptocurrency market also faced challenges, with Bitcoin slipping below $91,000 and the CoinDesk 20 index declining by 3.4% at the time of publication. In other news, the Cardano ecosystem has received a boost with the launch of Midnight's NIGHT token, which aims to enhance privacy on the network. The token has already doubled in value, approaching a $1 billion valuation, as it introduces a programmable privacy layer utilizing zero-knowledge proofs. This innovative approach allows for the separation of public and private data while enabling controlled disclosures to relevant parties. The launch also features a cross-chain allocation model that distributes NIGHT tokens across various ecosystems, promoting a collaborative privacy environment. This development highlights the ongoing evolution of blockchain technology and its applications in enhancing user privacy and security.

In the latest update from ChainCatcher News, the cryptocurrency market has experienced a notable pullback across most sectors. The DePIN sector has been particularly hard hit, leading the decline with a drop of 4.28% over the past 24 hours. Within this sector, Filecoin (FIL) saw a significant decrease of 7.50%, while Render (RENDER) fell by 5.52%. Major cryptocurrencies also faced downward pressure, with Bitcoin (BTC) dropping 1.41% to fall below the $91,000 mark, and Ethereum (ETH) declining 1.02%, dipping under $3,300. Other sectors have not been immune to this trend. The CeFi sector saw a 1.00% decline, with Cronos (CRO) down 3.39%. The Layer2 sector experienced a 2.15% drop; however, Mantle (MNT) managed to resist the trend, posting a modest gain of 1.12%. In the DeFi sector, a 2.35% decrease was noted, although Hyperliquid (HYPE) defied the odds with a 2.95% increase. The Layer1 sector fell by 2.54%, with Zcash (ZEC) suffering a notable 10.78% drop after previous gains. The PayFi sector also saw a decline of 2.92%, despite Ultima (ULTIMA) surging 6.63% intraday. The AI sector was not spared either, dropping 3.85%, although Pieverse (PIEVERSE) stood out with a remarkable increase of 28.38%. The Meme sector fell by 3.88%, yet PIPPIN (PIPPIN) rose by 6.67%. Overall, the ssiAI, ssiNFT, and ssiDePIN indices reflected these declines, falling by 5.55%, 5.32%, and 5.16%, respectively. It is important to note that this analysis is based solely on the author's perspective and should not be construed as investment advice.

io.net, a decentralized physical infrastructure network (DePIN) focused on AI compute, has announced a significant overhaul of its tokenomics with the introduction of the Incentive Dynamic Engine (IDE). This new demand-driven model aims to provide long-term stability for suppliers, users, and token holders by moving away from fixed token emissions. Instead, it will implement an automated system that adjusts emissions, buys back tokens, and burns a portion of revenue to mitigate inflationary pressures. Since its launch in June last year, io.net has processed over $20 million in verifiable compute leases, demonstrating real usage demand and necessitating this transition from a bootstrapping phase to a more stable foundation for enterprise and research workloads. At the core of IDE is a shift from a supply-driven rewards schedule to a real-time, demand-driven control system. This mechanism utilizes two counter-cyclical vaults and a “sustainability ratio” to balance payouts and reserves automatically. When revenue is high, the system retains tokens in reserve, while in times of lower demand, it releases tokens to stabilize supplier payouts. This approach aims to make supplier income predictable and enhance the network's resilience across varying market cycles, addressing the risks associated with the previous fixed-emissions model. Moreover, IDE incorporates a built-in deflationary mechanism, committing to using at least 50% of remaining revenue to purchase and permanently burn $IO tokens, with a target of removing over 150 million tokens from circulation over time. The proposal is currently open for community review, with feedback being collected until late February, and a final design is expected to be published ahead of a planned rollout in Q2 2026. Gaurav Sharma, CEO of io.net, emphasized the importance of this shift in enabling decentralized compute markets and aligning incentives for GPU providers, users, and investors, ultimately fostering a reliable and open compute network for AI systems.

In the ever-evolving landscape of cryptocurrency, meme coins have captured the attention of many investors, often leading to high-risk scenarios. While the allure of turning a modest investment into a substantial return exists, the reality is that many investors face the risk of losing their entire stake. A more stable investment avenue is emerging in the form of DePIN (Decentralized Physical Infrastructure Network) tokens, which have recently gained traction. As of November 25, the total market capitalization of DePIN tokens surpassed $12.4 billion, reflecting a growth of nearly 3% in just 24 hours. Notable projects in this sector, such as Render and The Graph, have rewarded early investors handsomely, showcasing the potential of this innovative approach to decentralized infrastructure. DePIN tokens, such as Helium and Grass, are at the forefront of this movement, powering decentralized networks that facilitate contributions from individuals and communities in exchange for cryptocurrency rewards. Helium, for instance, operates as a decentralized wireless network, allowing users to share radio coverage through rented hotspots, earning HNT tokens in return. The platform has seen remarkable growth, boasting over 2 million daily active users, a feat unmatched by any other blockchain. Meanwhile, Grass, which launched in 2023, is developing a decentralized internet bandwidth sharing platform, rewarding users with GRASS tokens for contributing their unused bandwidth. The recent anticipation surrounding Grass's Season 2 airdrop has further fueled interest in the project, with GRASS tokens experiencing a significant price increase. As the DePIN sector continues to flourish, investors are also keeping an eye on emerging projects like PepeNode, which is creating a mine-to-earn platform for virtual server operators to compete in mining popular meme coins. With over $2.1 million raised so far, PepeNode offers a deflationary token model and attractive staking rewards. As the cryptocurrency market evolves, the focus on DePIN tokens and innovative projects like PepeNode may provide a more sustainable path for investors looking to navigate the volatile crypto landscape.

IoTeX has officially launched ioID, the world’s first on-chain identity solution specifically designed for smart devices. This innovative protocol addresses the growing need for secure and verifiable identities in the rapidly expanding market of smart devices, which are projected to outnumber humans by 2030. ioID empowers decentralized physical infrastructure networks (DePIN) to authenticate devices, safeguard data, and facilitate next-generation applications within a user-owned ecosystem that is compatible with any blockchain. This breakthrough is poised to revolutionize identity management for smart devices, allowing them to achieve self-sovereignty through smart contract wallets and private keys. The ioID protocol introduces several key features that set it apart from traditional identity management systems. Firstly, it grants devices their own sovereign identity, enabling them to engage in on-chain activities independently of centralized intermediaries. Secondly, ioID's omnichain compatibility allows it to function across various blockchain platforms, making it suitable for a wide range of DePIN applications, from energy networks to smart wearables. Additionally, the protocol is designed to be tamper-proof and programmable, fostering innovation and interoperability among devices. Since its testing phase began in early 2024, ioID has been integrated with over ten DePIN projects, including GEODNET and Network3. This integration allows IoTeX to refine ioID into a standardized solution that meets the diverse needs of developers in the DePIN space. According to IoTeX Co-founder and CEO Raullen, ioID bridges the gap between the physical and digital worlds, making trust and programmability core features of device interactions with blockchains. As a significant milestone for IoTeX, the launch of ioID not only enhances device ownership and control but also unlocks new opportunities in the DePIN sector, reinforcing the platform's commitment to a more transparent and fair digital ecosystem.