Spheron Executes Initial SPON Buyback And Burn To Support Deflationary Network Growth
In Brief
Spheron completed its first SPON token buyback and burn, initiating a deflationary cycle that links network usage to token scarcity and supports long-term value growth.
Community-driven AI compute platform, Spheron announced that it has completed its first SPON token buyback and burn as part of its Secure Compute initiative. This step aligns with Spheron’s broader objective of establishing a deflationary cycle to enhance token value alongside network growth. During this initial cycle, the platform repurchased 0.625% of the total SPON supply, amounting to $500,000 at an $80 million fully diluted valuation, from its compute providers, with the acquired tokens set for permanent burn.
Going forward, Spheron’s Secure Compute Flywheel model links network activity and compute demand to token scarcity, systematically executing buybacks using network revenues and burning tokens to support long-term stability and value retention.
Spheron Strengthens SPON Through Deflationary Buyback Model, Driving Growth In Decentralized AI Infrastructure
Spheron’s Secure Compute system operates by having providers back GPUs with SPON tokens and offer discounted rates to users. When demand is high, the resulting surplus is used by the Spheron Foundation to repurchase SPON at or above its initial floor value. All tokens acquired through this process are permanently burned, generating deflationary pressure that reinforces the token’s value as network usage increases.
“Our first SPON buyback demonstrates tangible impact, connecting decentralized compute usage to tokenomics,” said Prashant Maurya, Co-founder and CEO of Spheron, in a written statement. “Every workload on Spheron drives AI innovation while making SPON scarcer, stronger, and more valuable. This represents a true alignment between compute providers, developers, and the community to ensure sustainable network growth,” he added.
With a network of over 44,000 nodes, more than $100 million in distributed compute, an annual recurring revenue of $16 million, and a global community exceeding 400,000 members, Spheron continues to advance the standards for decentralized AI infrastructure. The SPON token serves as the core of this ecosystem, facilitating transactions, governance, and functioning as a deflationary asset strengthened by growing network adoption.
The buyback-and-burn initiative initiates a recurring cycle that rewards providers, offers users cost-effective compute, and benefits token holders through a reducing supply, supporting Spheron’s long-term vision of a community-driven, sustainable, and self-reinforcing compute ecosystem.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
