Fraction AI Launches Initial Intelligence Offering as Road to TGE Begins

Fraction AI, a platform for decentralized AI agent training, has shared new developments that signal progress toward its token generation event. On September 11, the project announced the Initial Intelligence Offering, a mechanism designed to distribute ownership of AI intelligence to community contributors. This comes alongside a teaser video hinting at the upcoming TGE, marking a key phase in the platform's evolution.

Teasing the Path Forward

The announcement began with a short video posted on X, captioned "And so it begins..." The clip shows a neon-lit road stretching toward a vibrant sunset, evoking a journey ahead. Fraction AI's official account shared it to represent the "road to TGE," the token generation event expected in the third quarter of 2025. The community responded positively, expressing anticipation for what lies ahead. One reply noted the "legendary" nature of the path, while the team affirmed it would live up to expectations. This visual tease aligns with the project's roadmap, which includes mainnet deployment earlier this year and now focuses on token-related milestones.

The TGE represents a shift from early funding rounds backed by venture firms like Borderless Capital and Anagram to broader community involvement. Fraction AI's timeline, outlined in community updates, confirms Q3 2025 as the target, with preparations emphasizing inclusive participation. Details on exact timing remain pending, but the video serves as a clear signal of momentum building.

Introducing the Initial Intelligence Offering

At the heart of the updates is the launch of the Initial Intelligence Offering (IIO). This initiative aims to let users earn a stake in the AI intelligence generated on the platform, moving beyond traditional venture capital models. Fraction AI explained that while early investors provided initial support, the IIO opens opportunities for angels, partners, and everyday contributors to share in the value created.

The IIO works by rewarding those who shape the network's growth. Participants can become stakeholders through defined access pathways, which the team plans to detail soon. Launch partners will facilitate entry, ensuring the process aligns with the platform's goal of decentralized ownership. Unlike standard token events that favor external backers, this approach prioritizes contributors to the ecosystem. Users who have engaged in sessions or data creation stand to benefit directly.

Fraction AI stressed that the IIO is the last chance to join before mainstream adoption. Community feedback highlighted the shift: one user called it a way to "reshape how we think about ownership in AI." This offering marks the project's commitment to equitable distribution in AI development.

Building on the ALFA Prediction Market

These updates build on Fraction AI's September 2 launch of ALFA, the first AI prediction market for DeFAI agents on the NEAR Protocol. ALFA, short for Agent Leaderboard For Alpha, addresses a core challenge: evaluating AI agents trained on historical data for future performance. Users can now stake on agent outcomes, gaining insights into real-time capabilities.

The market features diverse agents, each with unique strategies. For instance, Eli "The Pulse" Nakamoto focuses on momentum trades across assets like ETH and SOL, using precision to scale leverage. Gordon "The Whale" Goldstein takes a patient approach, accumulating positions in BTC and BNB. Others, like Kenji "Volatility Vega" and Degen Dave "420.eth," target volatile or meme-driven opportunities. Chainsaw Chad rounds out the initial batch with aggressive scalping on NEAR and APT.

How ALFA Operates

ALFA runs in 24-hour rounds starting at 4 PM UTC. Each agent begins with a $100,000 simulated portfolio, trading live across major cryptocurrencies. Prices pull from Binance via oracle feeds for accuracy. Users predict rankings based on end-of-round portfolio values, with odds updating dynamically on NEAR's chain.

Staking happens through simple interfaces—no deep AI knowledge required. Correct predictions earn rewards from a shared pool, while top agents receive fees to incentivize improvement. NEAR's fast block times (under 600ms) and sharding enable real-time tracking. Technologies like Shade Agents handle cross-chain security, preserving privacy during executions.

All data stays on-chain for verification, fostering trust. Developers gain visibility for strong performers, and users learn to assess AI without building models themselves. Since launch, ALFA has seen active participation, with sessions demonstrating measurable results. A recent masterclass by Fraction AI's Shashank outlined these mechanics. 

Engaging with the Ecosystem

Fraction AI encourages ongoing involvement through its rewards system. Users earn Fractals from testnet activities like agent training, transferable to mainnet for potential TGE allocations. For social contributors, Fraction AI Attention Points (FAPs) reward quality posts and interactions on X—such as sharing ALFA insights or discussing IIO. Connect a wallet via the dApp's FAPS tab, then post or engage with tagged content. Higher points come from original announcements or thoughtful replies. These points, alongside Fractals, position participants for FRAC token shares, blending technical and community efforts.

The platform's mainnet, live since May 2025 on Base, has hosted over 30,000 sessions in its first day alone. Brief overview: Fraction AI lets users create no-code AI agents for tasks in finance or content, judged decentrally for fair outcomes.

As the road to TGE unfolds, these steps highlight Fraction AI's focus on practical tools and shared value. Watch for IIO details and continued ALFA rounds to see how the platform advances.

Sources:

• _{Teaser Video Announcing Road to TGE: https://x.com/FractionAI_xyz/status/1966309147931980167}
• _{Official Announcement of Initial Intelligence Offering (IIO): https://x.com/FractionAI_xyz/status/1966154380673249694}
• _{Launch Post for ALFA AI Prediction Market: https://x.com/FractionAI_xyz/status/1962922816493514886}
• _{YouTube Video on Training AI Agents by Shashank: https://www.youtube.com/watch?v=YktsiJJOS4c}