Infinite Galaxy Protocol Launches Testnet, Deflationary Economic Model Drives Governance Token Market Cap Above $1 Million on First Day

Date:

The decentralized finance protocol Infinite Galaxy Protocol officially deployed and opened its testnet to the public at 20:00 (SGT) on January 25, 2026. Built around the core design concept of “AI Prediction Engine × On-chain Liquidity Mechanism,” the protocol explores a new financial infrastructure paradigm that integrates predictive intelligence into pricing and value distribution systems.

Infinite Galaxy Protocol Launches Testnet, Deflationary Economic Model Drives Governance Token Market Cap Above  Million on First Day

According to publicly available information, Infinite Galaxy Protocol is a decentralized protocol combining AI-enhanced predictive models, prediction markets, and hybrid liquidity mechanisms, aiming to address the long-standing fragmentation between prediction markets and liquidity finance. Within existing DeFi systems, liquidity is primarily provided through passive market-making, while prediction markets remain largely confined to event-based speculation, resulting in limited structural synergy between the two.

Through protocol-level architecture, Infinite Galaxy couples prediction markets, liquidity pools, and AI-driven decision models, enabling predictive outcomes to directly influence market-making parameters and odds pricing. This mechanism enhances capital responsiveness to uncertain events and seeks to transform prediction behavior from short-term speculation into a persistent system variable that impacts yield distribution.

From a technical standpoint, the protocol adopts a four-layer architecture comprising a Data and Signal Layer, an AI Prediction and Decision Layer, a Predictive Liquidity Coupling Layer, and an Economic Settlement and Governance Layer. Its AI module leverages time-series analysis, natural language processing, and probabilistic modeling to synthesize on-chain transaction data, prediction behavior data, and external event information, dynamically adjusting liquidity weighting and risk pricing parameters.

The testnet phase will focus on validating three core areas:

The stability of AI-based probabilistic modeling for uncertain events in an on-chain environment;

The impact of shared capital mechanisms between prediction markets and liquidity pools on capital efficiency;

The sustainability of the dual-token economic system in terms of incentive distribution and settlement logic.

In terms of economic design, Infinite Galaxy Protocol adopts a dual-token structure. AOT (Astro Token) functions as the protocol’s governance token, granting rights related to DAO governance, node participation, and protocol revenue distribution. TRT (Terra Reserve Token) is primarily used for prediction incentives and settlement at the application-layer liquidity level. Through buyback, burn, and liquidity pool injection mechanisms, the model seeks to establish a positive feedback loop of “increased activity → higher protocol revenue → enhanced token scarcity → stronger liquidity attraction,” thereby reducing reliance on high-inflation subsidy models.

On-chain data indicates that following the launch of the testnet, the market capitalization of the governance token AOT surpassed USD 1 million. The project team stated that this performance is mainly attributed to the continuous operation of its deflationary economic model, as well as sustained liquidity contributions from the community via LP donations, which have helped maintain steady growth in the protocol’s underlying capital base.

Unlike traditional prediction markets, where value terminates upon event settlement, Infinite Galaxy Protocol aims to convert prediction behavior into long-term data assets and model parameters, forming cumulative system-level advantages. This means prediction is no longer merely a result-driven action but becomes an integral component of the protocol’s long-term operation and revenue structure.

At the application level, the protocol is expected to support use cases including on-chain prediction markets, prediction-driven liquidity market making, risk hedging and event insurance, as well as institutional-grade prediction and data services, providing infrastructure for predictive financial products.

The team noted that the testnet phase will primarily serve developers, node participants, and early community users to collect real operational data and continuously optimize model parameters and protocol rules. Future plans include advancing the genesis node framework, cross-chain deployment, and DAO governance system enhancements in preparation for the mainnet launch.

Industry observers believe that as AI continues to penetrate financial decision-making, the integration of prediction markets, liquidity mechanisms, and algorithmic models is becoming a key direction for next-generation DeFi protocols. The launch of Infinite Galaxy Protocol’s testnet provides a practical case study for “embedding predictive capability at the protocol layer,” with its real-world performance to be further validated through market data.

Official Channels

Twitter (X): https://x.com/Galaxy_Protoco

Telegram: https://t.me/Galaxy_Protoco

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