the hype around AI has turned into a crypto narrative with dozens of existing AI cryptos rallying and dozens of new ones launching at enormous valuations and one of these is bensa a relatively new crypto that's become the largest in the AI Niche despite nobody really understanding what it is or how it works and that's why today we're going to do a deep dive into bensa and reveal just how much potential its tcoin could have this is a video you can't miss I'll start by saying that nothing in this video is financial advice it's purely educational content intended to inform you about poens and I'll also note that some members of the coin Bureau team do hold tow as part of their personal crypto portfolios but this won't affect our objectivity in any way it should go without saying if you want to see the cryptos we hold and which ones we're considering accumulating then join the coin Bureau Club our members not only get access to our portfolios and watch lists but also weekly reviews of small cap cryptos which they vote for daily market analysis and realtime altcoin Alpha in our members Discord you can learn more about the coin Bureau Club using the link in the description with all that said the history of bensa begins with Jacob Robert Steves in a September 2022 interview Jacob revealed that prior to bensa he he worked for Dara and then Google uh for context Dara stands for defense Advanced research projects agency a research arm of the US Military and this is where things get interesting because Jacob noted in an October 2023 interview that quote we had been working on bensa since 2015 for reference bensa has two co-founders the first being Jacob and the second being Allah Shabana an AI researcher who didn't join B until 2019 this suggests the Wii Jacob was referring to is Dara specifically no m in or gnome Inc the advanced Computing company he was working for in 2015 that was contracted by Dara in other words bensa was originally created with the help of the US military or at least with financing from the US Military and that's not the only interesting thing either in one of the only two videos on beta's YouTube channel Jacob revealed that they had quote raised some cash and hired some devs to build the project uh for reference Pensa claims to have had a fair launch of its to coin meaning no early investors or VCS to be fair there is a bit of nuance here in the only other video on beta's YouTube channel Jacob revealed that the open tensa foundation which is a Canadian organization apparently founded in 2021 was funded by to coins sold OTC by early miners namely Jacob and Allah and this suggests that while there was technically no pre-sale of tow coins poens Founders committed to selling some of their coins to investors prior to launching to put things into perspective Jacob made these comments in January 2023 and bent's Main net and to coin didn't launch until March 2023 but wait it gets even more interesting in April this year Fortune Magazine published an article revealing the details of who had been investing in tow the largest investors were poly chain Capital digital currency group and DOW 5 a VC worth ties to polychain all invested an unknown amount in tow prior to launch notably polychain invested in bensa as early as 2019 which suggests that this is actually when the crypto project began and as a reward for being early polychain was allocated 200 $ Million worth of tow at its April prices a dcg and dow5 got $100 million 50 million worth of tow respectively as it so happens to's price in April was roughly what it is now around $600 with $300 million allocated to VCS this works out to just under 600,000 tow coins that's roughly 7% of to's circulating supply of around 7. 4 million and almost 3% of it its total supply of 21 million even more notably it's unclear what the vesting schedule for too is what is clear is that this vesting if it exists may not be enforcable as Pensa doesn't have Smart contracts at least not yet the upcoming introduction of evm style smart contracts seems to have been the Catalyst behind T's recent rally and by the way if you enjoying this video so far be sure to smash that like button to let us know and subscribe to the channel and ping the notification Bell as well so you don't miss our next altcoin update but back to the Dara Connection in that October 2023 interview Jacob explained that they presumably gnome Inc were looking to see how they could bring more computing power to artificial intelligence and after looking at how Bitcoin leveraged computing power they came up with poens uh for those unaware many Bitcoin miners have started providing AI computation for addition Revenue to be clear the application specific integrated circuits or asex used to mine BTC cannot be used to power AI as AI uses its own as6 but Bitcoin miners have the infrastructure to support AI as6 so this begs the question of what exactly Pensa is and how it works the short answer is that it provides decentralized Computing for AI use cases each AI use case has its own Network called a subnet miners provide the computation and validators ensure that each subnet has sufficient minor computation the long answer is where things get interesting again uh for starters the bensa blockchain was built using substrat the same developer framework used to build poka Dot and its parach chains in fact penser was originally going to become a parach chain but seems to have abandoned those plans back in 2023 in any case if you've watched any of our videos about polad do you'll know that most of its parach chains appear to have been built by teams based in China and BET's use of substrate and its original intention to become a parach chain therefore suggests that it may have a strong Community offshore what makes Pensa different from other substrate based blockchains is that it uses a novel consensus mechanism called Yuma consensus it's named after Yuma raal the pseudonymous author of The bensa white paper whose actual authors were probably affiliated with Dara in some way regardless hum consensus is used by validators to determine the tower rewards that each subnet gets based on minor performance there are currently 52 active subnets on bensa the most important one is the root subnet and this actually decides how much of tiles emissions the other subnets get now here's where things get a bit confusing there doesn't seem to be a limit on the number of subnets potena can support however there does seem to be a limit on the number of validators and miners each subnet can have the confusing thing is that the limit seems to vary depending on the subnet whatever the case the cost of registering a subnet is currently just over a th000 to which is roughly $600,000 BET's documentation notes that there's a limit of 64 validators and all per subnet and validators need to stake enough tow to be in the top 64 but again limits here seem to vary it's also possible to delegate or rather nominate with as little as 0. 1 Tower to earn a yield as high as 18% per year there doesn't seem to be any lock up or unlock for State Tow and there doesn't seem to be any validator slashin either interestingly the only slashin involves lowering the subnets reward Wards naturally the most important subnets earn the highest portion of tower missions with validators and miners on the root Network earning the highest share of around 11.
6% and that's not yield but the new tole minted in each block a subnet use cases vary from text prompts to image generation the standard stuff according to the bensa wiki there are currently just five apps leveraging benser technology and only three of them seem to work as you might expect two of these involve text prompts like chat gbt what you might not expect is that they free to use so where's the revenue what's funny is that Jacob was asked about Pen's demand metrics in June 2023 he couldn't provide any data and even pointed to the coin's price as a proxy to be fair this was a year and a half ago but even detailed bensa explorers like t stats still don't show things like apps and active users well the bensa browser extension only has 30,000 downloads and the only thing you can currently do is delegate to earn rewards which are being derived from bent's elusive subnets hopefully the introduction of evm style smart contracts will increase the utility of the subnets but back to the tow coin by now you'll know that to is the native crypto coin of potens as blockchain besides stake in it's used to pay for fees and will be used for governance perb tenser's documentation the blockchain is currently governed by the open tenser foundation and of course the biggest T stakers T's allocation is where things get interesting yet again officially T was fairly launched but even the official story seems to have a bit of nuance according to Tat's tokenomics page prenses mayet first launched in January 2021 but it experienced a technical issue in May 2021 that shut it down in this first period around 550,000 tow were mined and these coins were migrated to the second launch of the blockchain in November 2021 the final main net launch happened in March 2023 and this 550k figure is consistent with the roughly 600k tow that was sold to early investors but it could be a coincidence anyways even though it will take something like over 100 years for all 21 million to coins to be mined to's effective inflation rate is aggressive in its early years uh per a 2023 blog post 7,200 Tower will be mined every day until the first Haring which occurs in November 2025 that's 2. 6 million tow per year but never mind the year if you run the maths that works out to over $4. 3 million of tow being mined every day given this enormous supply side pressure you'd think that to's price would be in the toilet especially when you remember that Pensa doesn't seem to have any obvious demand drivers so in addition to the possibility that AI developers and researchers are leveraging bensa subnets for whatever AI stuff they're doing the reason why to's price has been so resilient seems to be because of speculation and the shock in low level of social metrics like followers suggests it's not retail speculation either and that leaves institutional speculation and our research suggests that this could in fact be the primary driver behind to's price action we came across multiple interviews of crypto VCS explaining why they were going all in on tow their reasoning wasn't very convincing but they seemed to be buying regardless we suspect this institution fomo is a combination of three factors the first is the fact that bensa seems to have been originally developed by entities funded by the US military so the tech it must be very good the second is the fact that AI is going to be big and it's hard to find good AI deals in trafi as a result the third reason could be the biggest Factor though and that's the fact that Pensa is eily similar to Bitcoin in its origin ethos and Mining Focus oddly enough Jacob claimed in an October 2023 interview that he's a Bitcoin maximalist and this is where things get truly interesting but also somewhat speculative basically it's possible that potential exists in part to support the Bitcoin mining industry consider that minor profits have been falling since the harving although there will be big profits to be made during the bull market the next bare Market will be absolutely brutal for Miners And of course there will be another harving what this means is that Bitcoin miners are going to need additional Revenue sources to keep them afloat we've already seen some large publicly traded Bitcoin miners like Marathon digital mining smaller proof of work cryptos to that end and I'll remind you that some Bitcoin miners are getting into ai6 to when you step back it really does start to look like pensal partial or even primary purpose is to support the Bitcoin mining industry regardless of broader crypto market conditions during the bull market they'll make huge gains from mining tow $4.
