FET (FET) tokenomika

The Artificial Superintelligence Alliance (ASI) is a unified project resulting from the merger of three decentralized AI projects: Fetch.ai, SingularityNET, and Ocean Protocol. The ASI token is the new universal token representing the convergence of these ecosystems. The token economics are primarily defined by the migration process from the legacy tokens ($FET, $AGIX, $OCEAN) to the new $ASI token.

Issuance and Total Supply Mechanism

The ASI token is created through a token merger and migration process, which establishes its initial supply.

• Total Supply: The total supply of the $ASI token is fixed at 2.63 billion tokens.
• Migration Process: The ASI token is issued by swapping the legacy tokens ($FET, $AGIX, and $OCEAN) at fixed conversion rates. The swap mechanism is designed to remain open indefinitely, meaning there is no deadline for token holders to migrate their assets.
  • FET Conversion: The conversion rate for Fetch.ai's $FET token to $ASI is 1:1.
  • AGIX Conversion: SingularityNET's $AGIX tokenholders can swap their holdings at a fixed rate of 1.00 AGIX to 0.433350 ASI.
  • OCEAN Conversion: The conversion rate for Ocean Protocol's $OCEAN token to $ASI is also 1:1.
• Implementation Timeline: The token merger was scheduled for implementation starting in July 2024. This process temporarily consolidated $AGIX and $OCEAN tokens into $FET before transitioning to the final $ASI ticker symbol.

Allocation Mechanism

The initial allocation of the ASI token is determined by the conversion of the existing token supplies and allocation pools of the merging projects.

• AGIX Allocation Pool: A specific allocation of 866.70 million ASI tokens, representing 33.00% of the total ASI supply, is reserved for the $AGIX token swap.
• Conversion of Legacy Pools: Initial allocation pools held in the legacy tokens, such as the staking allocation pool and the Deep Funding allocation pool from SingularityNET, are converted to $ASI tokens at the predetermined conversion rates.

The table below summarizes the conversion rates for the legacy tokens to the new ASI token:

Usage and Incentive Mechanism

The primary utility of the ASI token is to serve as the universal AI token for the combined ecosystem, representing the convergence of the three projects.

• Governance: The Artificial Superintelligence Alliance is designed to be governed by an Artificial Superintelligence Council and ASI tokenholders.
• Staking and Rewards: The vision paper for the Alliance suggests that the ASI token will feature a staking mechanism.
  • A staking mechanism for the ASI token was planned for release in May 2024.
  • In the legacy SingularityNET ecosystem, staking rewards were paid out at the end of a 30-day period, proportional to a user's stake. Users could withdraw their stake and accrued rewards at the end of the window, or the protocol would automatically restake them for the next 30-day period.
• Medium of Payment (Inherited Functionality): Based on the functionality of the deprecated $AGIX token, the ASI token is expected to facilitate trade transactions within the AI marketplace. In the previous model, $AGIX was used to settle AI service usage (e.g., API calls to AI agents).
• Funding and Grants: Initial allocation pools, such as the Deep Funding allocation pool from SingularityNET, are converted to ASI tokens, suggesting the token will continue to be used for funding projects and grant disbursements, subject to tokenholder approval via voting.

Locking Mechanism and Unlocking Time

Information regarding the specific locking mechanism and detailed unlocking schedule for the new ASI token was not available.

However, the token migration process itself includes key details related to the availability of the new token:

• Token Swap Availability: The swap mechanism for holders of $FET, $AGIX, and $OCEAN tokens is designed to remain open indefinitely, meaning there is no deadline for migration.
• Exchange Handling: Tokens held on exchanges are expected to be automatically relabeled as $ASI tokens.
• Hard Wallet Swap: A token swap mechanism is made available for those holding $AGIX and $OCEAN tokens in hard wallets or offline.

While the vision paper suggests that the ASI token will feature staking, specific disclosures from the project teams regarding the contemplated functionalities, including detailed locking periods or vesting schedules for team and investor allocations, were not available.