FET (FET) Tokenomics

The Artificial Superintelligence Alliance (ASI) represents a major strategic merger between three prominent decentralized AI projects: Fetch.ai, SingularityNET, and Ocean Protocol. This convergence has resulted in the creation of a unified token, $ASI, designed to serve as the economic backbone for a decentralized AI ecosystem.

Issuance Mechanism

The issuance of the ASI token is primarily driven by a multi-phase token merger and migration process. The total supply of ASI tokens is set at 2.63 billion.

The initial issuance was facilitated through a fixed-rate swap of the legacy tokens from the three founding projects:

• Fetch.ai (FET): Swapped at a 1:1 ratio. FET served as the base token for the initial phase of the merger.
• SingularityNET (AGIX): Swapped at a fixed rate of 1.00 AGIX to 0.433350 ASI.
• Ocean Protocol (OCEAN): Swapped at a fixed rate of 1.00 OCEAN to 0.433226 ASI.

The migration mechanism is designed to be open indefinitely for those holding tokens in hard wallets or offline, ensuring that all legacy holders can eventually transition to the new unified asset.

Allocation Mechanism

The allocation of the ASI token supply is determined by the relative market caps and token supplies of the three merging entities at the time of the alliance's formation. A significant portion of the supply is dedicated to the conversion of existing pools from the legacy networks.

Usage and Incentive Mechanism

The ASI token is designed to be the universal utility token for the combined ecosystem, facilitating transactions and incentivizing participation across various AI services.

• Medium of Exchange: ASI is used to facilitate trade transactions on the AI marketplace. It settles service usage, such as API calls to AI agents.
• Staking: The protocol features a staking mechanism where users can lock their tokens to earn rewards. For example, in the SingularityNET component, rewards are typically paid out at the end of a 30-day period proportional to the user's stake.
• Governance: ASI tokenholders possess governance rights, allowing them to vote on key protocol decisions. The alliance is governed by the Artificial Superintelligence Council, but tokenholders play a critical role in approving or rejecting grant proposals (such as those in the Deep Funding initiative).
• Ecosystem Access: Holding or staking tokens can qualify users for ecosystem airdrops and access to specialized AI tools and "Superservices."

Locking and Unlocking Mechanisms

The locking mechanisms for ASI are largely inherited from the staking and governance structures of the founding protocols:

• Staking Windows: Staking typically operates in 30-day windows. During this period, withdrawals are disabled. If a user does not withdraw their stake and rewards at the end of the window, the protocol automatically rolls them over into the next 30-day period.
• Governance Locking: While specific long-term lockups for the unified ASI token are still being integrated, legacy systems like SingularityNET's marketplace on Cardano required staking to facilitate fiat-crypto conversions.
• Unlocking Time: For standard staking, the unlocking time is at the conclusion of the 30-day staking cycle. For the broader token merger, there is no deadline for legacy holders to swap their AGIX or OCEAN for ASI, providing a flexible "unlock" for those migrating their value to the new alliance.

Governance and Oversight

The Artificial Superintelligence Alliance is governed by a collective of visionaries from the three founding projects, including Humayun Sheikh (Chairman and CEO of Fetch.ai), Ben Goertzel (CEO of SingularityNET), and Bruce Pon and Trent McConaghy (Ocean Protocol). This council oversees the strategic direction of the ASI token and the integration of autonomous agent technology, data exchange frameworks, and decentralized AI services.