I. The proposal
3 AI-focused platforms including SingularityNET ($AGIX), Fetch.ai ($FET), and Ocean Protocol ($OCEAN) are all racing to develop decentralized AI technology on the blockchain, with the vision that it will not be controlled by large corporations with shareholders. According to Bloomberg, on 28th Mar 2024, these 3 AI companies agreed to merge their token, naming the brand-new token as $ASI (Artificial SuperIntelligence).
II. The objective
The objective of this token merger is to create one of the world’s first open and decentralized networks, allowing all stakeholders to access Artificial General Intelligence (AGI), competing with major technology companies such as Alphabet Inc. and Microsoft Corp., which heavily invest in AI.
Winning this competition necessitates extensive resources. The solution must be fully integrated across the entire technology stack, encompassing crucial components like data management, AI Agents, and predictive models. The Alliance brings together the combined skills and expertise of 3 individual companies committed to advancing Superintelligence:
- Fetch.ai’s advanced autonomous AI agents and blockchain infrastructure
- SingularityNET’s rich R&D heritage in AI development and integration
- Ocean Protocol’s data sharing and monetization.
III. The term
- Voting process
Fetch.ai and SingularityNET submitted governance proposals to their respective communities and voting was open on 2nd April. All proposals are scheduled to complete voting by 16th April.
No voting is necessary for the $OCEAN communities.
- Token swap ratio
Once approved, it will then be possible to swap $FET, $AGIX and $OCEAN for $ASI at a fixed ratio which will be further explained, namely:
- 1000 $FET = 1000 $ASI
- 4333,5 $AGIX = 1000 $ASI
- 4333,3 $OCEAN = 1000 $ASI
The $ASI token, which is the renamed version of $FET token, will have a new market capitalization based on the token merge. The combined value of the token is projected to be approximately $7,55B, with a total of 2,631B tokens, using $FET as the reference currency.
- Token swap mechanism
- $FET Tokens on Exchanges: If you have $FET tokens on an exchange, they will be automatically relabeled as $ASI tokens. No action is needed by $FET holders. The foundation will coordinate with the exchanges.
- $OCEAN and $AGIX tokens on Exchanges: If you have $OCEAN and $AGIX tokens on an exchange, no action is needed. The foundation will work with each exchange to ensure a smooth conversion and your holdings will automatically be converted to $ASI tokens directly by the exchange. You won’t see $OCEAN or $AGIX on the exchange, but your tokens are there, just look for the $ASI symbol.
For more cases, visit: https://fetch.ai/blog/fetch-ai-singularity-net-and-ocean-protocol-unite-to-create-the-superintelligence-alliance
The token swap contracts have been thoroughly tested and audited. However, due to the complexity of coordinating with a multitude of business partners, the teams will conduct a comprehensive analysis, hold discussions with partners and exchanges, and subsequently inform the communities of an exact date for the release of the token swap tool.
- Leadership and future activities
The formation of a governing council is underway, led by prominent figures from the existing projects. Humayun Sheikh (Founder of Fetch.ai) will serve as Chairman, Ben Goertzel (Founder of SingularityNET) as the CEO, and Trent McConaghy and Bruce Pon (Co-founders of Ocean Protocol) as council board members. The council has outlined various exciting plans for collaboration among the 3 teams.
However, implementing these plans will require some time. In the meantime, each project will continue with their regular operations, ensuring business as usual. “Each Foundation is still free to do as they like, to bring forward the values and adoption of decentralized AI – without coercion or compulsion to pressure other Alliance members.”
Furthermore, they also emphasize that there may be future proposals to welcome other projects into the Alliance, expanding its scope and potential collaborations.
IV. The reaction
Although there has been a great deal of positive feedback regarding the integration of the 3 tokens, the community still harbors considerable confusion regarding the overall terms and conditions, due to the fact that the token merger represents an unprecedented occurrence within the crypto community.
- Concern about token dilution
The current total supply of $FET stands at 1.15B, and following the merger, it will increase to over double that amount, reaching 2.6B.
- Concern about the type of partnership/ merger
The community has raised concerns about the logicality of the merger, as all 3 participating organizations will continue to operate as separate entities. They question whether it is necessary to merge the tokens in order to collaborate as an alliance. The future utility of the $ASI token remains a matter of uncertainty for individuals who have a vested interest in the projects.
- Concern about the teams’ real motivation
In addition to the objective of creating a decentralized AI ecosystem capable of competing with industry giants, some investors contend that the merger serves as a narrative to salvage the waning attractiveness of the 3 underlying tokenomics.
There are still many lingering doubts and questions surrounding this event. However, if the proposal is successfully approved, it will undoubtedly be a crucial milestone in the market, opening up new possibilities for collaboration among projects within the same ecosystem.
Further Reading
- Macro Insights – February 2024: The bull run season has started
- Introducing BlockBase Ventures APAC Fund: Accelerating Mass Adoption of Blockchain
The information provided in this article is for reference only and should not be taken as investment advice. All investment decisions should be based on thorough research and personal evaluation.
