# Akash Records Top On-Chain Fees, Sees Rapid Growth
Akash’s on-chain data analysis reveals a significant increase in GPU supply, accompanied by a steady rise in user fees, serving as a vital indicator of the network’s scalability and profitability. With an eye towards the future, Akash’s primary challenge will be to expand GPU supply while maintaining high utilization rates and improving per-GPU fees.
Presently, Akash’s GPU utilization rate stands at 70%, solidifying its attractiveness to suppliers. Over the past year, both per-GPU fees and utilization rates have seen consistent growth, driven by product usability improvements and incentive offerings. To maintain momentum, Akash is introducing efficient incentive structures to sustain network growth while promoting sustainability.
# Incentive Structure for Optimal GPU Utilization
For network growth, well-designed incentives are crucial. Effective incentives provoke rapid expansion, but poorly designed ones may undermine network stability. To tackle this, Akash operates various incentive pilot programs (PIPs) to identify the optimal models.
One such program is the Utilization Guarantee Incentives, ensuring suppliers maintain stable utilization rates. Unlike typical decentralized physical infrastructure networks (DePIN), which simply pay for provided computing resources often leading to waste due to low utilization, Akash guarantees utilization through initial tenant discounts. Suppliers can maintain over 80% utilization rates, generating competitive income at approximately $2.30 per hour per H200 GPU.
Another model is Smart Financing, allowing AI companies to own their hardware. Despite wanting to establish private data centers for performance, privacy, and availability, many AI companies face substantial initial capital burdens. Akash mitigates this by offering clusters of 40 H200 GPUs for free, encouraging AI firms to become suppliers within the Akash network. Overclock Labs is currently collaborating with centralized and decentralized financial institutions to develop supportive financial products.
# Enhancing Supplier Experience and Transitioning to Service Economy
Akash is actively working on improving the user experience (UX) for GPU suppliers. Initially focusing on demand, the predictable and stable growth now allows Akash to invest in enhancing supplier experiences. The upcoming release of ‘Provider Console 1.0’ next week aims to make it easier for suppliers to lease and manage resources on Akash.
Further, Akash is pursuing an aggressive strategy to secure 11,000 large data centers (over 1MW) and 7 million edge data centers globally. Although many edge data centers are semi-professional operations, they hold potential as suitable suppliers for Akash’s network. Akash is employing an omni-channel approach to integrate these data centers into its network.
Efforts to increase per-GPU fees run parallel to these initiatives. While Akash currently focuses on leasing GPU resources, it plans to launch a ‘Services Economy’ platform by 2025. The average daily fee per GPU on Akash is about $20, a notable figure for resource leasing alone. Adding value-added services for AI developers, such as AI agent launchpads, inference services, and vector database hosting, could significantly boost per-GPU fees.
Akash made significant waves in the cloud computing market with its GPU marketplace launch in 2023. The planned introduction of the Services Economy platform in 2025 promises another wave of innovation. Unlike traditional centralized cloud service models, Akash connects AI developers and suppliers through decentralized infrastructure, building a new business model offering higher profitability.
As the AI and cloud computing markets rapidly grow, Akash positions itself as a leading platform by expanding GPU supply, optimizing incentives, improving supplier experiences, and transitioning to a service economy. The year 2025 is set to be a pivotal year for Akash’s expansion and innovation.
