The Grass Foundation, the company behind the development of the Grass blockchain protocol for training artificial intelligence (AI), announced one of the largest airdrops in terms of the number of recipients, information about which will become available on October 21, according to message company on social network X, writes RBC Crypto.
On OKX’s premarket platform, where tokens can be traded before they actually go public, GRASS is trading at around $0.8 as of October 14.
Grass is a project from the decentralized physical infrastructure networks (DePIN) sector. The team is developing an app that gives users the ability to sell unused internet bandwidth and use it to train AI. Anonymized user data is provided through network nodes or an extension for the Chrome browser – for this, the project awarded points to participants, which will be converted into GRASS tokens on the Solana blockchain.
What is Grass
Grass uses users’ internet connection to find the information they need, mainly for AI needs. Project participants install special software that forms a common network of user devices.
The project’s business model is based on the fact that launching a centralized infrastructure for data collection and AI training will require significant resources. At the same time, creating a network of hundreds of thousands of independent user devices allows you to reduce costs. A key feature of Grass is the distribution of rewards to users for their contributions to data collection.
That is, Grass assumes that AI developers will buy power or already processed data from the project, redistributing part of the profit to network participants who have installed special software.
The startup raised $4.5 million from Polychain Capital and Tribe Capital in 2023, and also led a round for an undisclosed amount from Hack VC, Delphi Ventures, Lattice, Brevan Howard Digital this year.
Risks Grass
Despite the popularity of the Grass project in the crypto community, the company has not undergone any audits, and its software is closed source. Thus, there is no way to know exactly how the protocol uses the users’ Internet connection.
The project also has restrictions for a number of geographical locations included in the list of sanctions, about which written on the website: “Grass Services and Grass Network may not be accessed or used by any person or entity residing, located, registered or having an office in any jurisdiction that is subject to any economic or financial sanctions.”
Current project
The Grass project is just one of many DePIN projects that use airdrop mechanisms to attract users in the early stages of development. At the beginning of August, the startup DAWN was launched, developing a solution for providing cheap Internet access.
Like Grass, the project uses unclaimed user resources. The essence of the technology is that users who do not fully consume the resources of their provider can provide them to clients DAWN. It will be cheaper for the latter to buy such services than to contact large companies. For providing traffic, the project developers promise a reward in the form of future tokens.
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Source: Cryptocurrency
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