What Is Akash Network?

Image:https://akash.network/

Akash Network is a blockchain-based decentralized cloud computing platform that allows anyone with idle server resources to rent them out to developers who need cloud computing power. Often referred to as the “Airbnb of Web3,” Akash Network is a decentralized alternative to traditional cloud services like AWS and Google Cloud.

Compared to centralized cloud services, Akash offers a more open, flexible, and cost-effective solution. Its core mission is to break the monopoly of cloud access held by tech giants and make computing power truly accessible.

How Akash Network Works

The operational flow of Akash Network can be broken down into the following key steps:

1. Providers (Supply Side):
   Individuals or organizations with idle server resources can list their offerings on Akash, becoming cloud service providers.
2. Tenants (Demand Side):
   Developers or enterprises submit Deployment Requests, specifying the computing resources, operating system, and runtime environments they require.
3. Decentralized Auction Mechanism:
   Providers bid on these deployment requests, and the system automatically selects the provider offering the best value.
4. Deployment and Verification:
   Once a contract is formed, the application is automatically deployed to the selected server. All transaction data is recorded on the blockchain to ensure transparency and security.

The entire process is automated, trustless, and powered by blockchain technology, eliminating the need for intermediaries.

Akash Network: Fundamentals and Tokenomics

Akash Network’s native token is AKT, the economic backbone of the network. It serves multiple purposes including staking, payment, governance, and ecosystem incentives.

1) Network Security and Staking Rewards

Users and validators can stake AKT to participate in Akash’s consensus mechanism, securing the network and earning inflationary rewards in AKT. The current annual staking yield is around 10%-13%. Regular users can also delegate their AKT to validators to share in the rewards, thereby encouraging more community participation.

2) Governance Mechanism

AKT is the basis for governance voting. By holding and staking AKT, users can vote on important on-chain decisions such as protocol upgrades, parameter changes, and fund allocations. Voting power is based on the amount and duration of staked AKT, reflecting the commitment and responsibility of participants.

3) Market Pricing and Payment

AKT is the default unit for resource pricing and transaction settlement in Akash’s leasing marketplace. When users create a lease request, providers bid in AKT. The final choice of provider is made by the user.

While stablecoins like USDC are also supported, they come with higher transaction fees (20%). In contrast, using AKT for payment incurs only a 4% fee—encouraging native token adoption.

4) Inflation and Token Distribution

Akash employs an inflationary model with a maximum annual inflation rate of 13%, mainly used to incentivize network participants (stakers, validators, community funds, etc.). Distribution is as follows:

• Staking Rewards: Given to validators and delegators.

• Community Pool: Funded via inflation and transaction fees to support developer grants, ecosystem projects, and marketing.

• Fee Burn Mechanism: A portion of transaction fees is burned to create a deflationary effect, benefiting long-term token value.

Akash Network: Use Cases and Market Performance

Akash Network is suited for a wide range of applications, especially:

• Web3 Projects (e.g., blockchain node deployment, DApp backend services)

• AI Inference Computing (e.g., AI model hosting and API services)

• Video Transcoding and Data Processing

• Development and Testing Environments (e.g., CI/CD automation)

With growing interest in AI and DePIN (Decentralized Physical Infrastructure), the demand for foundational compute platforms like Akash is rapidly increasing.

As of April 8, 2025, AKT is priced at approximately $0.968, continuing a general downward trend in Q1 2025.
Volatility is high—please trade cautiously and be aware of the risks.

Image:https://www.gate.io/trade/AKT_USDT

Conclusion

Akash Network is a truly decentralized cloud platform that provides developers with low-cost, high-flexibility compute resources. It challenges the dominance of traditional cloud services and lays scalable infrastructure for emerging technologies like Web3, AI, and DePIN.

As decentralized applications continue to grow, so does the Akash ecosystem. However, due to recent price volatility of the native token AKT, investors should remain cautious and assess risks carefully.