FUNNAI is entering its second planned rewards reduction, with lower payouts per challenge set to take effect on 29 December 2025 at 12pm Pacific Time, six months after funnAI began running in production on the Internet Computer.
Under the updated schedule, rewards will fall from 139.92 FUNNAI per challenge to 109.93. This follows the first reduction on 29 September 2025, three months after the project’s launch in late June.
The structure has been laid out well in advance. At launch, participants earned 181.90 FUNNAI per challenge. That figure dropped to 139.92 after the first adjustment and is now set for a further decrease. A third reduction is planned for 29 March 2026, when rewards will move to 88.51 FUNNAI per challenge.
According to the project team, these changes are part of a longer minting schedule capped at 21 million FUNNAI over roughly eight years. Early adoption incentives are designed to taper between June 2025 and June 2027. From mid-2027 through to 2033, rewards are expected to settle at 34.96 FUNNAI per challenge, with no further reductions planned beyond that point.
Supporters describe the model as borrowing from ideas familiar to long-time crypto participants, particularly predictable issuance and gradual reductions intended to manage supply over time. The comparison to Bitcoin’s early emission schedule has been made openly, though the team stresses that FUNNAI’s mechanics are tied to AI-related activity rather than pure computation.
FUNNAI tokens are earned through what the project calls Proof-of-AI-Work, with rewards distributed to on-chain participants referred to as mAIners. The aim is to link token issuance to verifiable activity, rather than speculative distribution alone.
As with any rewards-based system, lower payouts can alter participant behaviour. Some may see reductions as a sign of growing maturity and longer-term planning, while others may weigh whether declining rewards still justify their involvement. How the network adapts after this second reduction may offer early signals about the resilience of the model.
For now, the next phase is proceeding as scheduled, with the project framing each reduction as part of a steady transition toward a more constrained and predictable supply.
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