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.
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, allowing token holders to decide whether or not they approve the allocation change.
*This is not investment advice.
