Decentralized artificial intelligence project Swarms (SWARMS), announced that it plans to increase its team’s token allocation from 2% to 10% citing concerns about market manipulation and token instability.
Swarms developers acknowledged in their statement that the initial token distribution retaining only 2% of the supply for the team( was a mistake. While the goal, according to the developers, is to maximize decentralization, this decision has made the project vulnerable to manipulation by large token holders and exchanges not committed to the long-term mission.
The Swarms team made a statement, ‘This situation has led to instability, distraction, and threats to everything we are trying to build.’
To overcome these challenges, the team proposes a tokenomic adjustment allocating 10% of the total supply to the Swarms team. According to developers, this change aims to:
- Accelerating artificial intelligence research and development
- Providing stake rewards for long-term token holders
- To expand community grants to attract the best talents
- Strengthening the network against market manipulation
- Growing the ecosystem of artificial intelligence pioneers supporting the project
The proposal will be voted on through Swarms DAO, allowing token holders to decide whether or not to approve the allocation change.
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