Disclaimer

I am a token holder of AGIX and SNETs spinoffs. I do not work for SNET or any of their spin offs

Context

In mid March 2024, there was an announcement on the Singularity Net forums which was stating a merger between some of the largest market cap decentralised AI companies, $AGIX, $FETCH and $OCEAN. The merger of these companies aim to accelerate AGI and bring it on a decentralised platform. Regarding the timing this was a great time for all three of the companies with their token value consistently pumping up to 4X over that time period. It seemed logical that a merger of these organisation will definitely get a lot of publicity especially before any hype trains began or ended.

Each company tackled a different vertical which enabled privacy preserving, decentralised agents. So logically it made sense this merger will be great. The teams of all three organisation pushed for this to take place very quickly with only SNET doing a vote. The other organisation stated that this is an executive decision (so much for decentralisation).

The issues

With a merger like this there are a lot of factors to to be taken into consideration which we covered with a lot more detail in the report attached at the end. However a rough overview is as follows.

• SNET team being able to vote
• Votes not being on chain
• Erosion of AGIX holders voting power
• SNET’s spinoffs and how will they be weighed
• Absensce of the voted parties contributions
• Concerns regarding FETCH
• Tax concerns
• Token allocation

and more

As you can see mentioned above, there is a lot of concern regarding centralisation of the merger.

Voting Concerns

One of the most critical points of contention is the ability of the SNET team to vote. This situation creates a potential conflict of interest and raises questions about the fairness and transparency of the process. In a truly decentralized system, every stakeholder should have an equal say, and the centralization of voting power undermines this principle. Not to take into consideration that the SNET team has a the majority of the tokens. Thus ensuring that they can outvote whatever the community proposes.

On-Chain Voting

The lack of on-chain voting is another major issue. On-chain voting ensures transparency, immutability, and trust in the voting process. The voting mechanism instead was a signature stored with a wallet that has an allocation. These signatures was stored on their platform. Whilst making voting free it is strange that a decentralised crypto first platform refrained from on chain voting to provide the immutability of the votes.

Erosion of AGIX Holders' Voting Power

The merger dilutes the voting power of existing AGIX holders. If the new entity does not adequately account for the contributions and stakes of current AGIX holders. With the dilution of voting it is fair depending on how the tokenomics is agreed upon. However the other parties did not even take their community into consideration regarding the merger. This dilutes SNETs values since they’re merging with a company that doesn’t appreciate their token holders, which is a strong consideration members taken when supporting a token.

SNET’s Spin-offs

Another complex issue is how SNET’s spin-offs will be weighed in the new entity. The contributions and stakes of these spin-offs must be fairly assessed to ensure that their interests are adequately represented in the merged organisation.

Token Allocation

Finally, the allocation of tokens in the new entity are not respective of the performance of the token value nor the value that the companies merge bring. The ratio is as follows. 1:1 $FETCH to $ASI, 1:0.433350 $AGIX to $ASI, 1:0.433226 $OCEAN to $ASI. These token allocation was decided regarding a snapshot where FETCH was performing better than its counterparts in the market, which is not respective of the true value of the asset. This also does not taken into consideration the other values presented in a merger. Such as the team, the products, the philopsophy and the focus to decentralisation and more.

For a more detailed analysis regarding the token allocation view my notebook which does EDA (Exploratory data analysis) regarding the token performance of the tokens.

Conclusion

While the merger of $AGIX, $FETCH, and $OCEAN has the potential to significantly advance AGI on a decentralized platform, it also raises numerous concerns regarding centralization, transparency, and fairness. It is crucial for the involved organizations to address these issues comprehensively and ensure that the merger process is inclusive, transparent, and fair to all stakeholders. Detailed insights and recommendations on these matters are provided in the attached report.

Attachments