Aethir, a leading Decentralized Public Infrastructure Network (DePIN) firm, is making a bold move in the AI and gaming sectors with the launch of its $100 million Aethir Ecosystem Fund. The initiative, backed by the Aethir Foundation, is set to provide crucial financial support to artificial intelligence (AI) and gaming projects, offering developers the resources they need to scale and innovate.
The fund comes with a grant program called Aethir Catalyst, aimed at accelerating the adoption of Aethir’s decentralized compute platform. A total of 336,000,000 ATH tokens will be distributed over the next year, split equally between AI and gaming initiatives. With this massive funding effort, Aethir seeks to empower startups and established enterprises alike to grow without the limitations imposed by compute-intensive tasks.
Aethir Catalyst – $20M Grant Program for AI and Gaming
At the core of Aethir’s new ecosystem fund is the Aethir Catalyst, a $20 million grant program that will form the backbone of Aethir’s mission to democratize access to compute power. The program will support over 100 AI and gaming projects, providing financial aid through grants or subsidies for companies that rely heavily on GPU compute power.
Mark Rydon, Aethir’s co-founder, emphasized the significance of the Catalyst program, stating, “Aethir Catalyst represents a significant commitment to democratizing access to GPU compute for AI and gaming innovators. By allocating $20 million to this fund, we are ensuring that the most promising companies have the resources they need to thrive, reducing the barriers to compute power for all.”
Accelerating Growth for AI and Gaming Industries
The launch of the Aethir Ecosystem Fund comes at a pivotal moment for the AI and gaming industries. Both sectors are rapidly becoming more compute-intensive, with the demand for high-performance infrastructure continuing to grow. Aethir’s decentralized cloud computing platform offers a unique solution, allowing data centers, cloud providers, and crypto mining firms to contribute idle GPU resources to its network.
This innovative approach is positioning Aethir as a crucial infrastructure provider, enabling developers to focus on creativity and innovation without being hampered by the limitations of traditional cloud services. Aethir’s platform, launched on the Ethereum mainnet in June, leverages blockchain-based protocols to decentralize and optimize the operation of physical hardware infrastructure.
Partnerships and Strategic Grants
In addition to the Aethir Catalyst, the ecosystem fund includes two other $10 million grant programs in collaboration with XAI and XPLA, which are designed to further accelerate advancements in AI and gaming. These strategic partnerships reflect Aethir’s ambition to support a broad range of projects, from early-stage startups to large-scale enterprises.
By nurturing these industries, Aethir aims to foster long-term innovation and growth, establishing itself as a key player in both the AI and gaming spaces.
Aethir’s $100 million ecosystem fund underscores its commitment to powering the next generation of AI and gaming technologies. As these industries continue to evolve and expand, Aethir’s decentralized compute platform offers a scalable, cost-effective solution for developers in need of robust infrastructure.
The firm’s grant programs, including the Aethir Catalyst, represent a significant investment in the future of AI and gaming, democratizing access to compute power and supporting the innovators who will shape the future of these sectors.
Worldcoin is redefining how digital identity is developed by centering on the human iris as its primary biometric. However, in doing so, Sam Altman’s company, which now goes by simply as World, has drawn scrutiny from individuals and governments alike.
According to Shady El Damaty, CEO of Holonym and expert in zero-knowledge cryptography, the World Network’s centralized infrastructure makes it particularly vulnerable to data leaks and exploitation. Given the project’s global reach, the consequences of such breaches can prove catastrophic.
A Universal Digital Identity
With artificial intelligence continually blurring the lines between humanity and technology, Altman’s most recent project has taken the concept to the next level.
World, an initiative the OpenAI CEO launched in July 2023, has a bold objective: to scan every eye on Earth and forge a universal digital identity for humanity.
At its heart lies the World ID, a privacy-preserving digital identity generated through a unique biometric scan of a user’s iris, referred to as “the Orb.”
“Worldcoin is the very first example of a company… that has the explicit mission of documenting every single person in the world with a cryptographically immutable link between a cryptographic hash of your eye and… your biometrics,” El Damaty told BeInCrypto.
In exchange for this biometric verification, users receive WLD tokens, World’s native cryptocurrency. These tokens serve as both an incentive and a fundamental component of participating in this global network.
The initiative is undoubtedly innovative. However, it’s also tremendously risky.
Why the Iris? Unpacking World Network’s Biometric Choice
Unsurprisingly, World’s launch has been received with skepticism.
While users have generally grown comfortable with biometric authentication, such as fingerprints for passport scans or Face ID to unlock smartphones, the prospect of having one’s eyeballs scanned to create a digital identity has elevated the feeling of living in a simulated reality.
“[World] settled on… the iris, which has enough entropy within it that it’s really difficult to brute force. They could have gone with fingerprints, but they didn’t because these can be very easily modified; they can be burnt off, or you could use different fingerprints. Whereas for eyes, they are very difficult to change,” El Damaty explained.
The reason behind World’s decision to use such a specific biometric is in line with its stated purpose.
As artificial intelligence continues to develop at a rapid pace, this initiative is a way to provide a trust layer for the world post-AI.
Orbs are available in 46 countries. Find one near you, and join the real human network today. pic.twitter.com/5K4aSbvDwT
This mission is often framed as creating “proof of personhood” in an era when distinguishing real humans from AI bots will become increasingly complicated.
“In the future, it might be really difficult to know who you’re interacting with, maybe both in the digital world as well as the physical world as robotics and automation continues to improve,” El Damaty added, noting, “With OpenAI, I think they really quickly realized that the most valuable commodity in the world isn’t going to be a currency or some hard asset, but it’s going to be authenticity.”
Though the cause may seem noble enough, the way World Network has decided to go about it has drawn scrutiny. Part of it stems from a fundamental disagreement on what digital identity should entail, leading to a philosophical divide.
Monolithic vs. Pluralistic Identity Systems
Worldcoin’s “one iris scan belongs to one identity” system embodies a monolithic identity. Experts often criticize such an approach for heightened security risks.
In a recent blog post, Ethereum co-founder Vitalik Buterin warned that such a singular, universally linked identity risks online privacy and individual freedom. He expressed concern that even with advanced privacy tools, a one-identity-per-person property brings several security risks.
“That’s the real risk. If someone takes a picture of your eyes, can they use all publicly available information, or maybe even dark web information, to identify who you are and what you’ve done on-chain,” El Damaty told BeInCrypto.
This approach also contrasts with the cypherpunk ethos that birthed Bitcoin, which emphasizes anonymity. Critics argue that World represents a significant philosophical shift away from this privacy-first tradition by permanently labeling individuals.
A specific point of concern for Buterin and others is World’s nullifier. This cryptographic mechanism ensures that each person signs up only once. However, its very function also presents a significant vulnerability.
“As soon as your nullifier is given up… all of the accounts that you have linked to that nullifier are also given up… it could be the foundation of a really massive data leak,” El Damaty warned.
In response to these risks, El Damaty advocates for pluralistic identity systems with multiple online identities for different purposes. This protects sensitive real-world information from being inextricably linked to a single, globally unique ID.
“Those iris codes shouldn’t be linked to the same amount of information that can be used to access your voting record or your social security benefits or other really critical information that, if ever given up, would undermine your status as a person in the real world,” he added.
This tension also forms the backdrop for World’s direct conflict with national governments.
Could Worldcoin Data Become a Government Honeypot?
World Network’s global scope directly challenges national sovereignty, especially a state’s right to define its citizens’ identity. This raises a critical question: What if foreign governments demand access to their citizens’ biometric data collected by this company?
Tools for Humanity, World’s parent company, might use its distributed infrastructure as a defense, claiming data resides in various nations. However, El Damaty believes this defense is precarious.
“[World] also ha[s] infrastructure in the United States that’s going to be beholden to the US government’s authority. The US can come in and say, ‘hey, we’re going to pull the plug and put your executives in jail if you don’t hand over all of the logs that are coming from this central server that’s responsible for coordinating the entire network.’”
This vulnerability transforms World’s vast biometric database into a potential honeypot for governments. El Damaty pointed to precedents like the 2018 CLOUD Act, which allows US law enforcement to compel US-based tech companies to provide data, even if stored overseas.
Many nations have not waited for such hypothetical scenarios to play out, leading to immediate and forceful regulatory action.
Countries like Spain, Portugal, Kenya, and Indonesia have either imposed bans or initiated investigations into World’s operations, citing concerns over data handling, transparency, and age verification.
El Damaty highlighted a crucial transparency issue. As a private company, World’s financial and operational details aren’t fully open for public scrutiny. This, he suggested, enables them to strategically control how they present their activities to the world.
This opaqueness contributes to existing global skepticism.
“I don’t think governments are going to suddenly turn overnight and say, ‘okay, well, we’re going to let this American company [from] Silicon Valley run by one of the world’s most powerful people to track all of our citizens and give them their crypto tokens,’” El Damaty said.
Without detailed clarity, many nations remain wary of entrusting such fundamental identity information to a private entity perceived to be operating outside established legal and ethical norms.
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This week, the US Senate failed to move forward on a major stablecoin regulation bill called the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act).
On May 8, Democrat lawmakers united to block the bill, as 49 of them voted against advancing the legislation, while 48 Republican senators supported it.
Bipartisan Support Fractures as Key Democrats Reject Stablecoin Legislation
Notably, several Democrats who had previously backed or co-sponsored the GENIUS Act—including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, and Angela Alsobrooks —voted against it.
This marks a surprise, considering the bill had previously garnered bipartisan legislative support.
Gallego and several colleagues defended their move in a joint statement, saying the proposal lacked critical safeguards.
According to them, the bill needed to include stronger language on anti-money laundering, more robust oversight of foreign stablecoin issuers, and clearer enforcement tools to ensure compliance.
They also cited national security concerns and the stability of the broader financial system among their unresolved issues.
“We recognize that the absence of regulation leaves consumers unprotected and vulnerable to predatory practices. We have approached this process constructively and with an open mind, with the understanding that additional improvements to the bill would be made,” the lawmakers stated.
However, Republican lawmakers like Pete Ricketts criticized the vote outcome, accusing Democrats of prioritizing political interests over policy progress.
Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, argued that Senate Democrats missed a chance to enact sensible reforms to boost innovation and secure the US as a leader in financial technology.
“This bill wasn’t about politics—it was about building the future. It was about modernizing our outdated payment systems, and securing our position as the global standard-setter in financial technology. Instead, Democrats caved to fringe ideological factions, abandoning the opportunity to bring clarity to the market and foster American innovation,” Hines wrote on X.
Meanwhile, Matt Hougan, Chief Investment Officer at Bitwise, called the outcome “deeply unfortunate.” He warned that the absence of clear regulations could stall stablecoin adoption and suppress market growth, especially for altcoins.
Hougan also noted that a regulatory stalemate could lead to increased volatility across non-Bitcoin assets this summer.
“If stablecoin and market structure legislation grind to a halt in DC, it’s going to be a long summer for non-bitcoin crypto assets,” he noted.
Tether Welcomes Updated Stablecoin Bill
Following the failed vote, a newly updated draft of the GENIUS Act has surfaced with notable changes.
The new draft narrows its list of sponsors to Republican Senators Bill Hagerty, Cynthia Lummis, Tim Scott, and Dan Sullivan. Democrats Kristen Gillibrand and Angela Alsobrooks, who had previously backed the bill, were removed from the updated version.
The latest draft expands US jurisdiction to cover foreign stablecoin issuers like Tether that serve American users. It also refines the legal definition of digital asset service providers and updates the types of assets that can back stablecoins.
These changes suggest a push for broader oversight and greater flexibility in reserve management.
Meanwhile, Tether CEO Paolo Ardoino responded positively to the bill’s revisions. He said the company supports constructive regulation and looks forward to further engagement with US policymakers.
According to Ardoino, establishing a solid regulatory framework could help secure the US dollar’s dominance in global markets.
“We acknowledge and appreciate the hard work that the administration has done to support the legislative process regarding this transformative technology…We look forward to the government’s continued efforts to legislate in a way that promotes global dollar hegemony,” he said.
