Token Merge & Allocations

As part of the merger, the three existing tokens SDAO, CGV, and KEY would be converted into SFI tokens, thereby creating a single decentralised governance token used across the platform. The token merge will bring the utility of the three protocols within a single token.

In the initial phase the SFI token would be available on Ethereum and BNB Chain.

The token conversion rates for the migration to SFI are as follows:

• SDAO will convert to SFI at a ratio of 1:8.0353 (1 SDAO = 8.0353 SFI)

• CGV will convert to SFI at a ratio of 1:1.0890 (1 CGV = 1.0890 SFI)

• KEY will convert to SFI at a ratio of 1:0.1 (1 KEY = 0.1 SFI)

This process will result in an initial supply of 2,492,523,711.7 SFI tokens.

Conversion Methodology

In the interest of transparency, the process leading to the determination of the above-mentioned conversion ratios is outlined below:

• The 200 DMA (daily moving average) of token prices was used to define the conversion ratios. This was done in order to remove any short term price volatility impacting the final ratios of conversion.

• The max supply of each token was used to set the final weights of each token in the merger.

• The ratios and the final set prices are disclosed with the merger announcement in order to avoid market manipulation.

Note: This merger is still pending the vote of approval of SingularityDAO community. A blog post in relation to that with further details around the proposal and voting dates would be announced with release of the merger announcement or soon thereafter. Cogito and Selfkey do not require a community vote for the proposed merger. On successful passing of the vote, the merger portal for migrating SDAO, CGV, and KEY would be open to the community. Details related to the aforementioned process will be provided in due course.

Additional Token Mint

In order to fund further development and provide incentives to early developers and users there will be an additional token supply of 2,507,476,288.3 (100.60% of initial supply) minted. These tokens would be minted as per the vesting schedule defined later in the litepaper. A few of the areas where the newly minted tokens would be used for incentivisation are:

Ecosystem incentives will be used to support the growth of the network and facilitate collaboration between various network participants.

a. Community Incentives

A part of the incentives would be used to support developers, who build dApps, contracts, AI services/agents on the Layer2. Some of the initiatives would be to organise bounty programs, gas sponsorship/refund for dApps etc. to attract users and drive adoption. Furthermore, community outreach initiatives such as referral programs, ambassador programs would be set up to create a loyal and active base of community members.

b. Network Incentives

Token holders who participate in securing the network either via running Singularity Finance nodes or delegating to other node runners would be rewarded with SFI tokens. These incentives will allow the stakers to keep their tokens staked, enhancing the network security.

c. Liquidity incentives

SFI tokens will also be used as incentives to attract liquidy to Layer-2. A part of the additional token supply would be used to jumpstart the DeFi activity on the chain. For example: SFI tokens would be rewarded as incentives to users who supply assets to the liquidity pools. This enhanced liquidity would lead to better pricing as well as attract better market participants, supporting the network growth.

This will result in a total SFI supply of 5,000,000,000 tokens after additional mint.