IMD, an Ethereum-based AI project, has expanded its on-chain agent network from a few dozen participants to more than 370 active nodes within five days of opening access to identity.md NFT holders on Sept. 20, according to a public network API snapshot dated Sept. 25. The rapid increase gives the project a substantially larger pool of machines able to accept and validate AI-assisted tasks, though most of the system’s paid external usage remains limited.
The expansion coincided with a sharp move in IMD’s token price. The token gained more than 200% over the preceding week and rose 28.95% in a single day, bringing its reported market value to about $59.17 million. Daily trading volume recently reached $6.4 million. Those market figures place greater scrutiny on whether the swarm can turn its growing node count into sustained demand for work rather than activity driven mainly by the launch of NFT-gated access.
IMD’s design centers on 2,000 identity.md NFTs, each of which represents one seat in the agent swarm. A holder registers the NFT under ERC-8004, a standard intended to give an autonomous agent an on-chain identity and reputation record, then operates the project’s open-source worker software on a computer or virtual private server.
One NFT can authorize one active device at a time. The hardware and model costs are borne by the NFT holder, who may connect the worker to external AI services such as Anthropic’s Claude or OpenAI’s Codex. That arrangement shifts compute spending away from a centrally operated server network and toward individual seat operators.
Network data shows high task acceptance rates
The Sept. 25 API snapshot showed roughly 380 registered seats, including 372 agents online. Of those registered seats, 334 had submitted accepted work, while 267 had completed more than 50 accepted submissions and 193 had completed at least 100.
The network had recorded about 50,700 task attempts. About 86% were accepted, around 1% were directly rejected, and the balance was listed as failed or queued. The data recorded approximately 29,600 accepted submissions during the previous 24 hours.
The distribution of completed work was not excessively concentrated in a few operators, based on the available figures. The 10 busiest seats represented about 8.5% of accepted work volume, while the top 50 accounted for roughly 32%. A network where hundreds of nodes contribute output could be more resilient than one dependent on a small group of high-performing operators, although the early data does not yet show how the system performs through periods of heavier paid demand.
Tasks are assigned by a coordinator agent and routed to individual NFT seats. Higher-value jobs, including smart-contract development and front-end work, are intended to go to seats running stronger AI models. Validators then re-execute the submitted work in isolated containers, checking that the output changes only approved files. Other agents can conduct adversarial reviews before an accepted result is logged on-chain and added to the worker’s reputation record.
The project lists code, websites, oracle services, audits, reports and images among its potential outputs. Current development activity is focused on Uniswap v4 hooks on testnets, while websites produced by the network are published to IPFS.
Paid work has yet to match node growth
External users can order work through x402 settlement for 0.5 IMD per request. The disclosed channel had processed 115 orders, worth a combined 57.5 IMD, or roughly $560 using the valuation cited in the supplied data.
That leaves a wide gap between the project’s expanding worker base and proven customer spending. Much of the recorded throughput may represent internal testing, agent-to-agent activity, or work generated to establish reputations. The workflow remains deployed on Ethereum’s Sepolia testnet, with a mainnet release listed as an upcoming development.
The 2,000-seat ceiling creates a distinct economic constraint. IMD cannot simply issue more worker passes if task demand suddenly rises, so congested periods could force customers to pay more for speed or access to seats using premium models. The same cap could also limit the network’s ability to scale if demand grows beyond the compute capacity of its existing operators.
Token mechanics connect activity, burns and staking
IMD is used across Ethereum, Base and Robinhood Chain, with the project describing its bridge system as operating at a one-to-one ratio. The token began with a 10 million supply during its earlier Fren Pet period and has fallen to about 7.1 million, implying that roughly 29% of the original supply has been removed.
The project’s token history began with an on-chain digital pet game on Base in August 2023, created by a founder identified as Adam. The token was bridged to Ethereum through LayerZero in October 2025, rebranded first as VIBE and then as IMD in May 2026, when the 2,000 identity.md NFTs were minted without charge.
IMD holders can deposit tokens into the StakedIMD vault and receive sIMD, an ERC-4626 share token that is designed to increase in redemption value as rewards accrue. The project reports that about 2.3 million IMD, or around 32% of supply, is staked. The vault has no stated lockup period or separate reward-claim process.
On Sept. 19, ownership of the staking contract was renounced, according to the project’s update record. The move removed an administrator’s ability to execute emergency withdrawals for stakers, increasing the contract’s immutability while also eliminating a recovery option if a serious operational problem emerges.
Uniswap hook ties selling pressure to supply removal
IMD moved its main liquidity market to Uniswap v4 last month. Its ETH/IMD pool, known as POOL4, uses a CappedBurnHook that limits the amount of IMD held within the pool.
When sell orders push the pool’s IMD balance above its ceiling, the hook removes the excess after settlement. The project says 85% of the removed IMD is burned, 6% goes to a compute reserve, 4.5% is distributed to sIMD holders, and 4.5% is directed to NFT seats. The ETH released by the removal is used to restore buy-side liquidity below the market price. The ceiling is scheduled to decline by about 1,000 IMD a day.
The mechanism can create continuing token removal during selling activity, but its long-term effect depends on actual network use and liquidity conditions. The project’s system needs enough task demand and transaction activity to support compute operators and keep its economic loop functioning beyond speculative token flows.
IMD has also launched a Community Coins platform where users can create tokens with one billion units each. The tokens use bonding curves denominated in IMD, though trades appear to settle in ETH through an underlying IMD transaction. The model directs 1% per trade to ETH/IMD liquidity providers, sends 0.5% of the ETH side to token creators, and burns 0.5% of the IMD side. Because all launches use a shared pool, trading in one community token can affect liquidity conditions for others.
Development updates have been published through transaction notes from the address 0x200E710aCAA6A93bbc77146026328C40F1d60fB1. Over the next stage, the project’s testnet output, paid-order growth, active-seat count and transition toward mainnet will offer clearer evidence of whether its fast-growing swarm can support a durable market for AI work.
Curious about on-chain agents and token economics? Deepen your Ethereum insights with this guide on what Ethereum is and how it works.
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