21 hours Ago
The big news in Web3 has been the merger of three key firms in the industry: SingularityDAO, Cogito Finance, and SelfKey. The announcement has given way to some especially interesting details about the new structure, along with decisions for the new organization, Singularity Finance (SFI). The three leaders of the organization participated in an AMA to discuss some of the details, highlights, and even community concerns about the new organization.
With such a unique move in such a fast-moving industry, it can be difficult to fully understand all the pieces as they touch different technologies. We will work to digest the announcement, details of the AMA, and some of the bigger implications that this merger will have on its immediate community and the larger Web3 community as a whole. .
SFI Merge Proposal - LIVE AMA NOW 🎙 Join us NOW as we are joined by @bengoertzel and @MAC_0_0 of @SingularityDAO and @clorisxchen of @CogitoFi Discussing the recent SFI Merge proposal announcement, tokenomics and answering your questions.. https://t.
co/NTEoPzEebP So why these three particular organizations? It was no coincidence that the three value propositions combined to form Singularity Finance, as it has a key focus that requires a strong foundation. The goal of the new organization is to leverage the tokenization of assets such as AI Compute, in the form of GPUs, processing power, AI-powered financial algorithms, and data sources that train and drive the models. SingularityDAO provides many of the AI technology required for this, while Cogito Finance brings with it the financial expertise to develop key tools and models, along with the extensive knowledge in regulation necessary to scale the business outward to more and more geographical markets.
Along with this, SelfKey brings with it a compliant tokenization framework in the form of digital identity solutions. These strengths each contribute toward the broader goal of compliant, regulation-friendly tokenization of AI assets. Cloris Chen (CEO, Cogito Finance) said of the merger, “The feedback from advisors and the market has been very positive.
What excites me most is the uniqueness of our value proposition: no one else is doing what we're doing in tokenizing the AI economy and building a Layer 2 network. We have the expertise and network from SingularityNET to make this a reality." The biggest element of this merger is creating an environment where AI assets can be tokenized.
The combination of exponential growth in the AI sector; the extremely high costs for AI capital, data sets, and AI algorithm development; and the ability for small, medium, and large companies to all take advantage of AI assets if they can afford the capital investments needed; all point toward a massive opportunity. Because this growth is appearing in the AI industry, but the mechanism to fully utilize these AI assets is held within Web3 mechanics, the opportunity is still truly greenfield, and is ripe for the picking to anyone who can put all the pieces together first. One area of initial concern with the merger was the consolidation of tokens.
As with any token consolidation, token holders tend to get nervous about conversions and value adjustments, along with any increase in token supply. In the case of SFI, the token supply will gradually double, which caused concern over value dilution from some investors. However, the reasons for these adjustments do make sense given what the platform’s long term goals are, and will be necessary in order to build the Level 2 economy needed to fully generate a thriving AI asset tokenization model.
The tokenomics have been laid out in detail for the three communities, with the increase in supply offset by intelligent management of token release to prevent volatility, and with the additional rewards through various fee avenues. By showing that token holders now have more valid opportunities to earn, especially with a strong model using AI asset tokenization, the economy structure of SFI fits together when viewed as a whole. Mario Casiraghi (SingularityDAO Co-Founder) said of the additional value opportunities, “We're focused on the convergence of DeFi and TradFi with a special emphasis on the AI economy.
The SFI token will add utility by being used in a proof-of-stake network and will capture value across the whole ecosystem, from transaction fees to tokenization fees. The merger also upgrades SingularityDAO's protocol-level utility to a network-level solution." The other piece of the tokenomics is designed to power not just a protocol, but an entire Layer 2.
This decision was also a point of initial focus by community members, with the founders providing details on why an entire Layer 2 development was necessary for SFI. Based on the goals for SFI, a Layer 2 solution provides stronger security, liquidity aggregation, along with more flexibility to create economic incentives for its members. In addition to this, the team is able to connect to other ecosystems via cross-chain compatibility.
This opens the door to a significantly larger Web3 market for SFI. Dr. Ben Goertzel (SingularityNET, ASI Alliance), said of the Layer 2 decision, “A Layer 2 blockchain provides more flexibility and scalability, allowing us to operate cross-chain and aggregate liquidity more effectively.
It also enhances security and helps us build a more resilient network capable of onboarding larger players and institutions. This architecture is necessary for us to lead in the rapidly growing AI economy." The SFI merger, while a surprise to some, is an inevitable evolution for Web3.
It is an optimistic look at what Web3 could look like for more and more use cases, where the need for tokenization, decentralization, transparency, or borderless finance can be best executed using the fundamental elements of blockchain. By focusing on the emerging chokepoints of digital identity and regulation, the SFI merger is able to proactively move forward and prevent issues well before they happen. For the new, larger SFI community, we will all be able to see what this grand experiment holds.
Between the forethought, the market demands, the risk management, and the potential incentives, the experiment has every reason to succeed. Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp _____________ Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.
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