FET (FET) tokenomics

The Artificial Superintelligence Alliance represents a major strategic merger between Fetch.ai (FET), SingularityNET (AGIX), and Ocean Protocol (OCEAN). The alliance aims to create a decentralized infrastructure for Artificial General Intelligence (AGI) and Superintelligence. The tokenomics of the unified ASI token are designed to consolidate the value of these three ecosystems into a single, liquid asset.

Issuance Mechanism

The ASI token issuance is primarily driven by a multi-phase merger process that converts existing tokens from the three founding projects into a new unified supply.

• Initial Supply: The total supply of ASI tokens was established at approximately 2.63 billion.
• Minting for Merger: To facilitate the merger, an additional 1.48 billion tokens were minted to cover the allocations for AGIX and OCEAN holders.
• Benchmark Currency: The FET token serves as the reserve and benchmark currency for the alliance. In the first phase of the merger, AGIX and OCEAN were temporarily merged into FET before the final transition to the ASI ticker.
• Deflationary Measures: The alliance has introduced an "Earn and Burn" initiative. This mechanism is designed to reduce the total supply by burning a portion of the fees generated from ASI-powered services (such as API usage and model inference). The alliance set a target to burn 35 million tokens within the first year of this initiative.

Allocation Mechanism

The allocation of the ASI token is determined by fixed swap ratios based on the relative valuations of the merging projects at the time of the agreement.

Note: In late 2025, Ocean Protocol announced a withdrawal from the alliance to regain independent control over its tokenomics, though the conversion bridge remains open for holders who still wish to migrate to FET/ASI.

Usage and Incentive Mechanism

The ASI token is designed to be the central utility asset for a decentralized AI economy, facilitating both technical operations and governance.

• Medium of Exchange: ASI is used to pay for AI services, such as API calls to AI agents on the SingularityNET marketplace and licensing for foundational models.
• Staking: Tokenholders can stake ASI to secure the network and facilitate crypto-fiat gateways. Staking rewards are typically distributed in 30-day windows.
• Governance: ASI holders participate in the Artificial Superintelligence Council. They have the right to vote on protocol upgrades, grant proposals (such as the Deep Funding program), and the addition of new members to the alliance (e.g., the proposed integration of Paal AI).
• Incentive Tiers: Users who stake tokens may qualify for premium services, ecosystem airdrops, and higher governance influence.

Locking and Unlocking Mechanisms

The locking and unlocking of tokens vary depending on the source of the tokens and the specific phase of the merger.

• Swap Deadlines: For the primary merger of FET, AGIX, and OCEAN, there is no deadline for the token swap. The migration contracts are intended to remain open indefinitely (or for several years) to allow holders in self-custody to migrate at their own pace.
• Staking Locks: Standard staking on the platform often involves a 30-day locking period. During this window, withdrawals are disabled, and rewards are accrued. If not withdrawn at the end of the period, the protocol may automatically re-stake the tokens for the next window.
• New Member Vesting: For newer integrations into the alliance, such as the proposed CUDOS or Paal AI mergers, stricter locking terms apply. For example, converted CUDOS tokens were subject to a 3-month linear vesting period, while the Paal AI proposal included a 180-day vesting period for converted tokens.
• Institutional/Team Locks: While specific historical lockups for the original founding teams existed, the alliance has focused on ensuring stakeholder alignment through extended schedules where necessary to prevent market volatility during the transition phases.