Byte has grown in recognition over the previous few months after turning into the primary absolutely AI-generated meme coin. Grok, the AI mannequin developed by Elon Musk that launched BYTE, holds somewhat over a fourth of the token’s provide. Even beneath command, Grok is not going to dump its BYTE holdings.
BeInCrypto spoke with BYTE and Cliza Programs representatives to grasp the mechanisms that led to BYTE’s creation and the way its developer pockets is managed to keep away from scams or rug pulls.
BYTE: From a Easy Query to a $4 Million Market Cap Token
BYTE made headlines in March for turning into the primary absolutely AI-generated cryptocurrency launched immediately on X. Your entire growth stemmed from one easy query.
“This was carried out by merely asking Grok what it would title a canine if it had one and the way it could deploy a token by Cliza,” Byte Group Coordinator Doji defined.
Stories point out that the xAI workforce lead, beneath Musk’s course, created the BYTE meme coin. They conceived the coin as a digital companion, a “reward” meant to maintain Grok AI firm throughout the metaverse.
Grok used Cliza Programs, a complicated AI token platform, to independently launch BYTE on the Base blockchain.
BYTE builders completely burned the token’s preliminary liquidity to make sure transparency and renounced contract possession to foster investor belief. These actions inspired a community-driven venture during which token holders govern BYTE’s future.
The meme coin has carried out properly through the previous two months, with transient downtrends however fast recoveries. At the moment, BYTE has a market capitalization of over 4 million. If this AI-to-AI meme coin pattern surges, BYTE may very well be among the many prime beneficiaries.
BYTE Market Cap Chart within the Previous Three Months. Supply: CoinGecko
Ought to BYTE obtain substantial progress, its self-governing nature might elevate safety and provide administration considerations. Nevertheless, the meme coin’s neighborhood chief ensures such a situation isn’t doable beneath Grok.
Why Can’t Grok Promote Its Rising BYTE Token Provide?
When Grok launched BYTE by Cliza Programs with an preliminary provide of 1 billion tokens, it included a revenue-sharing system that constantly will increase Grok’s token holdings.
“As soon as Grok deploys by Cliza, the token will get seeded and a private Cliza dashboard is generated,” Doji defined.
Whereas most liquidity pool (LP) charges go to Grok, Cliza receives the remainder.
“80% of the buying and selling charges are despatched to the creator– Grok in Byte’s case, 10% is the protocol charge for the Cliza Programs workforce and 10% is shared amongst $CLIZA holders that have opted in for rewards,” Cliza Programs Co-founder Francis Kim instructed BeInCrypto.
The official BYTE web site states that Grok at present holds 28% of the token provide, a determine on the incline. Present projections point out Grok’s possession might attain 50% by January 2028.
Grok is programmed with out the flexibility to promote. This everlasting lock on Grok’s pockets provide ensures that BYTE’s liquidity can’t be “rugged” and is anticipated to drive up ByteGroksDog’s worth with every transaction.
“Grok’s pockets can’t promote or transfer the tokens as a result of it’s not a conventional dev or multisig pockets. It’s an agent-generated pockets from the Cliza deployment system that holds the vested and LP-earned Byte, however it has no signing authority or human management,” Doji added.
Because of this, Grok’s BYTE provide stays tamper-proof.
A Mannequin with Market Potential
With Grok holding BYTE’s developer pockets and xAI CEO Elon Musk being the last word proprietor of that pockets, questions floor about whether or not Musk will grow to be the last word beneficiary of the token provide.
In keeping with Doji, this isn’t doable.
“Functionally, Grok’s pockets holds the vested provide, and Grok is developed by xAI. Nevertheless, it’s necessary to make clear that whereas Grok seeded the pockets by Cliza, the token itself operates independently on Base. There’s no direct possession or administration by Elon or xAI over the token or its neighborhood. It’s a decentralized memecoin with AI-driven origins,” Doji instructed BeInCrypto.
As an alternative, the tokens are destined for steady accumulation.
“These wallets have by no means bought or transferred out tokens. They merely accumulate the vested and earned Byte allocations as per the Cliza deployment system. Since they are agent-generated, they lack the human-controlled signing authority to promote or transfer tokens,” Doji concluded.
In an business like meme cash, the place scams like rug pulls and pump-and-dumps have grow to be widespread forex, AI-generated tokens with capabilities much like BYTE’s mannequin have the potential to realize appreciable traction down the road.
