Akash Network Activates Burn-Mint Equilibrium

Akash activates Burn-Mint Equilibrium after upgrade

Akash confirmed the upgrade through its official X account, stating that Burn-Mint Equilibrium is now live and fully operational. The system went live at block height 26063777 after governance Proposal 318 passed on-chain. (Source: Mintscan Proposal)

According to the team, workloads continue running normally and the price oracle remains stable. This upgrade represents the most significant change to Akash’s token mechanics to date.

Background on Akash and the shift away from stablecoins

Akash operates as a decentralized cloud marketplace within the Cosmos ecosystem. It allows users to buy and sell compute resources without centralized providers. The $AKT token historically powered payments, staking, and governance.

Over time, volatility became a problem. Pricing compute in a fluctuating token created friction for both tenants and providers. Earlier solutions introduced USDC-based payments to stabilize costs. That improved usability but weakened $AKT’s role in the system. (Source: Akash AEP-76 Roadmap)

Burn-Mint Equilibrium replaces that model by bringing demand back to the native token.

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Why this matters

Akash Network activates Burn-Mint Equilibrium to align token demand directly with real usage. Every deployment now creates structural demand for $AKT through a burn mechanism. In theory, more network activity leads to tighter supply.

This is a stronger model than relying on emissions or incentives. However, the design introduces new dependencies. The entire system now relies heavily on accurate pricing and smooth execution across multiple steps.

The shift also signals a broader trend where infrastructure projects try to tie token value more directly to utility rather than speculation.

Where the risks are

The model looks clean on paper, but execution will decide its success. The biggest dependency is the oracle.

If pricing data becomes inaccurate or delayed, the burn and mint cycle could misprice compute or distort token supply. Even with safeguards like TWAP and medianization, oracle risk never fully disappears.

There is also a timing risk. The system depends on price differences between burn and mint phases. If volatility moves in the wrong direction, expected deflation may not materialize.

Another concern is complexity. Compared to simple payment models, this system introduces multiple steps involving ACT credits, vault tracking, and collateral ratios. More moving parts mean more potential failure points.

Finally, adoption risk remains. If network usage does not scale meaningfully, the deflationary narrative becomes irrelevant.

What happens next

The immediate phase is monitoring. The team will track burn rates, vault balances, and collateral health through on-chain dashboards.

Testnet data suggests the system handled stress scenarios well, but mainnet conditions will provide the real test.

Key things to watch:

Net token burn over time
Oracle stability under volatility
Actual growth in compute demand

If these align, the model could strengthen $AKT’s long-term position. If not, adjustments will likely follow.