The decentralized and artificial intelligence-powered portfolio management protocol SingularityDAO has said it’s planning a major transformation in order to accelerate its plans to bring AI on-chain.
As part of its evolving mission to merge AI with the decentralized finance ecosystem, it’s merging with Cogito Finance, a specialist in real-world asset tokenization, and SelfKey, a key player in decentralized identities, to create a new entity called Singularity Finance.
The vision for Singularity Finance is a Layer-2 blockchain network that’s tailor made for the tokenization of the AI economy as RWAs, and it plans to achieve this by leveraging all three of its founders’ technologies. It’s an ambitious goal, but Singularity Finance can provide both the infrastructure and funding needed to bring innovative new AI applications on-chain.
SingularityDAO is a key player in the SingularityNET ecosystem, which offers a decentralized, blockchain-based marketplace for AI systems. It’s primarily focused on bringing AI to DeFi, with its main innovation being a decentralized protocol that relies on AI algorithms to optimize asset management on behalf of users, so they can better balance their crypto portfolios. Using its platform, investors gain automated, advanced risk management capabilities, which can be tailored to the level of risk they’re willing to tolerate.
As for Cogito Finance, it’s another member of the SingularityNET ecosystem that’s focused on the tokenization of traditional assets. It has built a suite of AI-powered investment products for users, including the GFUND, TFUND and XFUND smart contract vaults, which tokenize fixed-income assets and equities so they can be traded on the blockchain. Cogito was built to overcome some of the key challenges in DeFi, including unsustainable yield farming and regulatory uncertainty.
Finally, SelfKey is the creator of a decentralized identity network, enabling blockchain users to create and manage self-sovereign identities that prove their credentials while ensuring full privacy on-chain.
The merger has been in the works for some time, and there are some precedents in terms of their cooperation. Most recently, SingularityDAO integrated with Cogito, allowing its users to invest in that company’s TFUND, GFUND and XFUND vaults and use its AI algorithms to manage risk.
A Platform For AI-FI
Singularity Finance says each of its founding companies has developed complementary technology that will enable it to do a number of novel things at the intersection of AI and DeFi. The planned Layer-2 platform will provide a foundation for a new concept called “AI-Fi” that involves tokenizing AI assets such as models and datasets and integrating them within existing DeFi applications. By doing this, it believes it can pave the way for new on-chain primitives to power more advanced, automated DeFi applications and provide more efficient funding for AI asset creators.
The new entity will be led by a “leadership council” that consists of SingularityNET’s chief executive Dr. Ben Goertzel and SingularityDAO co-founder Mario Casiraghi, plus Cogito Finance’s CEO Cloris Chen.
Singularity Finance said it will utilize Cogito’s tokenization framework to bring those AI asset on-chain, with SelfKey providing the decentralized ID system for people to participate in a compliant yet anonymous way.
Once everything is ready to go, Singularity Finance plans to create a range of robust and transparent, AI-powered financial services and DynaVaults that will enable it to further its goal of automating investment, risk management and wealth distribution.
Another major benefit of tokenizing AI-related assets is that it will help to boost accessibility to the emerging AI industry, which is currently dominated by centralized companies like OpenAI, Anthropic, Google, Microsoft, Stability AI and Cohere, to name just a few. Those who are familiar with the concept of RWAs will know that by tokenizing AI assets, Singularity Finance can pave the way for fractional ownership of AI models and training datasets, which can be part-owned by thousands of different investors. This will inject more liquidity into the AI ecosystem and enable more individuals to get involved and benefit from its growth.
AI asset owners will also benefit from greater protection, which is a key consideration given the moral questions around AI companies that scrape the web and other public data sources for data used to train their models. By bringing data assets on-chain, it’s easier to establish ownership and develop ways to monetize them.
Casiraghi said the intersection of AI and DeFi will drive the next wave of innovation in the Web3 industry.AI-Fi harnesses the immense potential of the AI economy by tokenizing the AI value chain,” he said. “It creates unprecedented opportunities to access, exchange and monetise these assets.”Boosting The Artificial Superintelligence Alliance
In addition to building an ecosystem around AI-FI, Singularity Finance will also help the Artificial Superintelligence Alliance in its efforts to create a decentralized and ethical AI development ecosystem to rival the likes of OpenAI and Google.
SingularityNET was a founding member of the ASI when it launched earlier this year, alongside Fetch.ai and Ocean Protocol, with Cudos joining the initiative more recently.
The ASI’s members intend to pool their resources to provide AI developers with everything they need to build decentralized AI applications, including the underlying network, compute resources, datasets, intellectual property and funding sources.
Singularity Finance said it will act as the underlying “finance chain” for the ASI, providing it with a ready-made, liquid and compliant infrastructure of blockchain-based AI.
$SDAO, $CGV And $KEY To Become $SFI
Anyone who has invested in the native tokens of SingularityDAO, Cogito and SelfKey will be impacted by the merger, as the companies are planning to merge them into a single digital asset that will serve as Singularity Finance’s primary token for payments and governance. The new token, $SFI, will initially launch on both Ethereum and BNB Chain.
The merger is still not confirmed, as SingularityDAO’s community must first approve the initiative via a community vote that runs from October 11-20, though it’s hoped that process is a mere formality.
There is no set timeline for the merger, but the conversion ratios have already been established, with users receiving 80.353 $SFI for every $SDAO token they hold. Cogito’s $CGV tokens will be swapped at a rate of 10.89 $SFI per token, while SelfKey’s $KEY will be exchanged at a ratio of 1 $SFI per token.
SingularityDAO, Cogito and SelfKey will provide more information about the token merger to their communities in the coming days.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
