FET (FET) Tokenomics

The Artificial Superintelligence Alliance (ASI) is a unified project resulting from the merger of three decentralized AI projects: Fetch.ai, SingularityNET, and Ocean Protocol. This merger involves combining their respective tokens ($FET, $AGIX, and $OCEAN) into a single universal AI token, $ASI. The tokenomics of ASI are primarily defined by this merger and the subsequent conversion rates and initial allocations.

Issuance Mechanism and Total Supply

The ASI token is created through a token merger process, which consolidates the supplies of the three constituent tokens.

• Total Supply: The total supply of $ASI tokens is fixed at 2.63 billion.
• Conversion Rates: Holders of the original tokens can swap them for $ASI at fixed, predetermined rates:
  • FET to ASI: The conversion rate is 1:1, meaning 1 FET swaps for 1 ASI.
  • AGIX to ASI: The conversion rate is 1.00 AGIX to 0.433350 ASI.
  • OCEAN to ASI: The conversion rate is 1.00 OCEAN to 0.433350 ASI.
• Swap Mechanism: The token swap mechanism is designed to remain open indefinitely, meaning there is no deadline for holders to exchange their legacy tokens for ASI. Tokens held on exchanges are expected to be automatically relabeled as $ASI.

Allocation Mechanism

The initial allocation pools of the legacy tokens, such as staking and Deep Funding pools held in AGIX, are converted to ASI tokens at the specified conversion rate. Specifically, 866.70 million ASI (representing 33.00% of the total token supply) is allocated for the AGIX swaps.

While the exact breakdown of the 2.63 billion ASI total supply across all original token holders (FET, AGIX, OCEAN) and new ecosystem funds is not fully detailed, the conversion process ensures that the initial holdings are preserved and converted into the new unified token.

Usage and Incentive Mechanism

The ASI token is intended to serve as the universal currency for the combined AI ecosystem. The vision paper for the Artificial Superintelligence Alliance suggests that the ASI token will feature staking, although specific, detailed functionalities beyond this suggestion were not fully disclosed at the time of the merger announcement.

Based on the functionalities of the predecessor token, AGIX, the ASI token is expected to support core ecosystem activities:

• Medium of Payment: The token is used to facilitate trade transactions within the AI marketplace, similar to how AGIX was used on the SingularityNET marketplace. This includes settling user payments for AI services (e.g., API calls to AI agents).
• Staking and Rewards: The vision paper indicates that a staking mechanism for the ASI token is planned for release. Previously, the AGIX staking pool allowed users to stake tokens for 30-day periods, earning rewards proportional to their stake. Initial allocation pools for staking are being converted to ASI tokens.
• Governance: The Artificial Superintelligence Alliance is intended to be governed by an Artificial Superintelligence Council and ASI tokenholders. Tokenholders are expected to have governance rights, including the ability to vote on grant proposals for ecosystem funding (similar to the Deep Funding mechanism previously used by SingularityNET).

Locking Mechanism and Unlocking Time

The token merger process itself defines a key aspect of the token distribution timeline, but specific, detailed vesting schedules or locking mechanisms for the new ASI token beyond the initial swap were not fully disclosed.

• Token Swap Timeline: The token merger was scheduled for implementation starting in July 2024. During Phase I of the merger, AGIX and OCEAN tokens were temporarily consolidated into Fetch.ai's FET token before transitioning to the ASI ticker symbol at a later date.
• Indefinite Swap Window: The swap mechanism for converting FET, AGIX, and OCEAN to ASI remains open indefinitely, meaning there is no deadline for token holders to complete the migration.
• Initial Allocation Conversion: Initial allocation pools from the legacy projects, including staking and Deep Funding pools, are converted to ASI tokens at the predetermined rate.

Detailed token unlock schedules for specific allocations (e.g., team, investors, ecosystem funds) of the new ASI token were not available.