Effect Network (EFX) was a decentralized platform designed to provide services in the artificial intelligence (AI) market. It aimed to create an open, democratic, and decentralized network for AI, enabling data scientists and developers to access a global workforce for data labeling, model training, and other AI-related tasks.

The EFX token functioned as the native utility token within the Effect Network ecosystem and facilitated several key functions:

• Access to Services: EFX tokens were used to access AI services on the platform, such as data labeling, validation, and model refinement.

• Incentives for Participation: Contributors, such as data labelers, developers, and validators, were rewarded in EFX tokens for their work within the network.

• Governance: EFX holders could participate in decision-making processes through the EffectDAO, influencing platform upgrades and governance parameters.

Effect Network structured its ecosystem into distinct layers:

• Effect Force – This was the first layer of the platform, designed to provide a global, decentralized workforce for data labeling and annotation tasks.

• Effect Smart Market – This layer facilitated the creation and monetization of AI models, enabling developers to offer AI services to the community.

• Effect Power – This was designed to manage and distribute computational power for AI-related tasks within the network.

On January 1, 2025, Effect Network consolidated its EFX and NFX tokens into a new unified token known as EFFECT. This migration aimed to simplify the ecosystem's token structure and improve functionality.

• Eligibility: Holders of more than five tokens (either EFX or NFX) as of January 1, 2025, at 12 PM UTC were eligible to claim EFFECT tokens.

• Blockchain Transition: The new EFFECT token was launched on the Solana blockchain.

• Claim Process: Token holders could claim their EFFECT tokens through an official claim portal, ensuring a smooth transition.