Antony Parsons
The Artificial Superintelligence Alliance (ASI) has proposed integrating Paal, an AI chatbot company, but the token conversion terms have raised significant concerns among PAAL token holders. The proposed merger would convert Paal tokens to ASI tokens at a controversial 6.24:1 ratio, with an additional 5% fee deducted for the merger. Furthermore, PAAL token holders face a lengthy 180-day vesting period for converted tokens, sparking concerns about limited access to funds and potential devaluation.
Conversion Terms Under Fire
The core frustration among PAAL token holders is the 6.24:1 token conversion ratio, which many believe undervalues PAAL in comparison to ASI’s FET tokens. The 5% fee imposed on converted tokens compounds these concerns, reducing the overall value that PAAL investors would receive. Critics argue that this structure disproportionately benefits the ASI Alliance by adding to its ecosystem at a minimal cost while giving PAAL holders reduced value for their investments.
Adding to Token Holders’ Grievances
A mandatory 180-day vesting period on converted tokens adds to the frustrations. This means PAAL investors would have to wait half a year before gaining full access to their assets. During this period, they risk losing value if FET token prices fluctuate, an outcome that some fear could leave them with diminished assets.
Limited Benefits for PAAL Community
While ASI Alliance executives, such as Dr. Ben Goertzel, have touted the merger as an opportunity to broaden PAAL’s reach in AI and blockchain communities, many PAAL holders remain unconvinced. They feel that the proposed terms fail to adequately reward PAAL’s existing community or compensate for the unique position PAAL has built within the AI space.
Community Reaction and Market Impact
The PAAL community has reacted with anger at its proposed membership of the ASI Alliance. The PAAL token dropped by 65% following the announcement, with the value of each PAAL token pegged at $0.22, 25% less than its value at the time of the announcement.
PAAL AI Withdraws Merger Proposal
In response to the community feedback, PAAL AI has decided to withdraw its merger proposal with the ASI Alliance. From the ASI Twitter page:
We want to address the recent decision to retract the PAAL token merger into the ASI Alliance. We have heard the community’s feedback and appreciate your input. Our immediate focus is on strengthening our core community, enhancing the existing alliance, and advancing the technology central to our shared vision. We are dedicated to building trust, supporting the utility of the FET token, and fostering meaningful progress for our stakeholders.
Moving forward, we are committed to a more inclusive process, ensuring the community is involved in discussions around any future mergers—though none are currently on the horizon. We value the community’s input deeply, and our efforts remain centred on reinforcing our core community and advancing our technology together. We look forward to moving ahead together with a clear focus on creating meaningful progress within our ecosystem.
The withdrawal of the merger proposal reflects the ASI Alliance’s commitment to addressing community concerns and ensuring that future initiatives are more inclusive and fair. The focus now shifts to strengthening the existing ecosystem and fostering trust among stakeholders.
