The Web 3.0 world is currently dominated by speculative memecoins and governance tokens. Put bluntly, these have absolutely no clear value accrual. FLock.io’s FOMO launchpad is the first to financialise model tokens, capturing the value of a new asset class wholly different to standard crypto tokens and traditional Real-World Assets (RWAs).
RWAs are an asset class where the revenue comes from commercial activity in the real world. The term is used within blockchain and crypto to represent a digital token of a tangible or intangible asset existing outside the blockchain ecosystem – from real estate and bonds to gold and artworks. These tokens bridge the gap between traditional finance and decentralised finance (DeFi).
Model tokens are RWAs, but they belong to a superior class we call Real Model Assets (RMAs). The difference lies in rivalrous versus non-rivalrous resources – more about that later on.
[ 👋 Hi there! If you’re here to find out more about FLock.io, follow us on X, read our docs and sign up to AI Arena on train.flock.io. We just launched FOMO, completing our full-cycle DeAI platform.]
First off, what are model tokens?
Model tokens are the building blocks of text that models process. They can be as short as a single character or as long as a full word, depending on the language and context. As a rule of thumb, roughly one token equals three or four characters in English text, but it varies ±20% depending on the content. For example, “Cómo estás” might contain 4 tokens for 10 characters.
They serve as the “currency” for API usage costs – usage fees are based on the total count of input and output tokens. The context window is the maximum number of tokens (input + output) a model can handle at once.
When you send text to the API:
- The text is split into tokens.
- The model processes these tokens.
- The response is generated as a sequence of tokens, then converted back to text.
Token usage is tracked in several categories, including input, output, cached (reused tokens in conversation history) and reasoning (extra “thinking steps”). These counts are used for billing and usage tracking – API usage is priced per token.
FLock.io’s FOMO launchpad on fomo.flock.io lets anyone launch model tokens in exchange for hosting services on the FLock API Platform. With this launch, specific model tokens will be issued, and users can stake them to secure discounted API rates.
RWAs are either linear assets or exponential assets
The Real-World Assets (RWA) sector is splitting into two distinct asset classes based on scalability and revenue potential. Namely: 1) linear assets and 2) exponential assets. It’s important to note the distinction between the “linear trap” and the “exponential unlock” of digital utility.
Linear assets (physical RWAs) are a trap
Traditional RWAs, such as real estate or charging stations, are “rivalrous” resources. In economics, a good is said to be rivalrous or a rival if its consumption by one consumer prevents simultaneous consumption by other consumers. They are constrained by physics and time.
For example, a charging station can serve only one vehicle at a time. A hotel room has a hard cap on occupancy, and a real estate portfolio can only be rented to a certain number of people.
The valuation of linear assets is mathematically capped: Revenue = Price x Time (Max 24h). Once the price exceeds the logical rent-to-price ratio, the asset enters bubble territory. When demand spikes, these assets cannot scale. They simply create a queue, failing to capture excess value.
AI models are exponential assets
AI models represent a new class of “non-rivalrous” assets. They possess infinite concurrency. A single model can serve one user or one million users simultaneously without performance degradation or blocking access.
The valuation of Exponential Assets is uncapped by physical constraints. Formula: Revenue = Price x Time x User Count (Unlimited). If demand for a specific model creates a viral event, the asset instantly scales to absorb all traffic, capturing 100% of the revenue upside.
FLock.io is the first to financialise AI model tokens
FLock.io’s new FOMO launchpad is the first platform to financialise model tokens. These tokens are connected to the utility of specific AI models, and generate real yield derived from external commercial inference revenue.
What sets FLock.io apart from generic revenue-sharing platforms is the deflationary mechanism, which enforces scarcity. It means increased API usage results in a permanent reduction of token supply, through the direct value-accrual mechanism. As developers and enterprises pay for API inference, a portion of that revenue is programmatically routed to buy back and burn the associated model tokens.
See our blog about our academic paper explaining how our dynamic buyback-and-burn mechanism stabilises token value in decentralised AI economies.
While most DeFi yields are circular (paid out by printing more of the native token), FLock FOMO’s model tokens generate inference revenue. This comes from developers, enterprises and users paying to access the AI models via API calls. Demand is driven by external business needs rather than internal speculation, meaning that model tokens provide real yield.
As usage grows, supply shrinks because of the “value loop”. While the model is running inference on the API Platform, end-users are actively consuming “inference credits.” A portion of this real revenue is then automatically routed to buy back the associated model tokens from the open market (programmatic buy pressure). These bought-back tokens are immediately burned and removed from circulation forever (permanent deflation). The result is that every API call contributes to a permanent reduction in the total supply of the model token.
Regardless of which specific application gains market share, the underlying model captures the value. No matter which application is a big hit, as long as they call the FLock API Platform, the ecosystem remains healthy because usage balances supply. In this way, it can be compared to the NASDAQ of the AI sector.
Find out more about FLock.io’s FOMO launchpad
FLock.io’s fair launchpad is finally here! The monumental launch of FLock Open Model Offering (FOMO) finalises FLock’s evolution into a full-cycle AI platform that completes the demand side of the FLock ecosystem.
Over the past year, FLock has focused on building strong AI supply: training high-quality models, supporting serious researchers, and running decentralized infrastructure in production. With the launch of the FLock API Platform, developers can now easily create API keys, integrate models, and serve real-world inference. The remaining question was no longer about access, but about economics.
See a step-by-step guide here and learn how to launch a DeAI model here.
