Magic Newton Foundation Launches NEWT Token to Combat Insider Trading

The Magic Newton Foundation has announced the launch of NEWT, the native token of the Newton Protocol. This launch is designed to address widespread concerns about insider trading and unequal token distributions, featuring best-in-class disclosure standards and transparent documentation. The total supply of NEWT tokens is capped at 1 billion, with 21.5% circulating at the time of listing. The token is intended to promote equitable distribution and eliminate issues related to unfair token allocation.

The Newton Protocol, developed by Magic Labs, aims to enhance the user experience in cryptocurrency through AI-powered solutions. The protocol combines trusted execution environments (TEEs) with zero-knowledge proofs (ZKPs) to enable automated on-chain finance operations. NEWT serves as the protocol’s gas fee for issuing or revoking private, verifiable on-chain sessions and intents to Newton agents. This decentralized infrastructure layer creates what the company describes as a “decentralized economy of verifiable agents.”

One of the key strengths of NEWT is its elimination of insider advantages that decentralized exchanges use to trade ahead of token listing announcements. The token upholds the principles of fairness, transparency, and user control that are a part of the Newton protocol. As a system that enables secure AI automation to give users complete control of their assets, the protocol also addresses technical trust through verifiable AI agents, and the NEWT token embodies economic trust through transparent token distribution.

Mohammad Akhavannik, Managing Director at Magic Newton Foundation, stated, “Not only is NEWT unlocking secure AI-driven finance, but it’s also correcting the information asymmetry problem that has plagued past token launches. With full onchain transparency, thorough documentation, and equitable distribution, the Magic Newton Foundation is committed to restoring trust. Our number one priority is making verifiable automation accessible via a system built on fairness that users can count on.”

To ensure transparency, NEWT token allocations are tagged in publicly disclosed wallet addresses and are trackable on-chain or verifiable independently for any off-chain holdings. Of the 1 billion NEWT tokens, the Foundation allocates 60% to community initiatives such as ecosystem development, growth, and community rewards. In addition, all team and contributor allocations are subject to 36-month vesting schedules with 12-month lock-up periods, designed to ensure long-term alignment and ensure no risk of a rug pull.

NEWT also serves as a token that powers the Newton Protocol by staking rewards for validators, as a native gas token and payment mechanism, as a governance token, and more. As the demand for secure AI automation continues to increase, Newton Protocol is bringing verifiable automation, which allows users to delegate tasks to AI agents while monitoring the entire process. To reward early supporters, the project is rolling out a multi-tiered community rewards program to incentivize awareness, adoption, and engagement with the Newton Protocol.

NEWT is already available on top crypto exchanges and more exchanges will be included in the future. The AutoFi functionality of the Newton Protocol allows users to establish automated dollar-cost averaging (DCA) strategies for various cryptocurrencies. Users can configure recurring purchases on hourly, daily, weekly, or monthly schedules through AI agent automation. Since its official launch, Magic Newton has accumulated over 1.1 million signups, processed 747,000 verified agent transactions, and activated more than 362,000 AutoFi agents.

However, the project has faced significant criticism from early community members regarding its token allocation methodology. According to the released tokenomics, the top 1,000 accounts on the social platform received 0.9% of the total 215 million circulating NEWT supply. This decision has drawn considerable community criticism, with many arguing that it prioritized influencers and high-profile accounts while excluding genuine early adopters and testers who contributed to the platform’s development. Early supporters who accumulated over 5,000 credits through Magic Newton’s initial quests and held community roles found themselves ineligible for token distributions. Additionally, participants who had not engaged in testnet activities or discussions received 125 NEWT tokens each.

The crypto community now awaits Magic Newton’s ability to retain its substantial user base and demonstrate genuine utility for the NEWT token beyond speculative trading. The foundation’s commitment to transparency and equitable distribution will be crucial in building trust and ensuring the long-term success of the Newton Protocol.