SFI merge proposal

1. Proposal Overview

• Proposal Title: Merger of SingularityDAO Resubmission: Community Feedback Implementation
• Proposer(s): SingularityDAO
• Category: Company Merger
• Utility: AI Economy, Real-World Assets (RWAs), Decentralised Finance

2. Introduction This proposal seeks approval from the SingularityDAO community to merge SingularityDAO, Cogito Finance, and SelfKey to form a new entity called Singularity Finance. The merger will combine complementary technologies to develop and deliver solutions across all stages of the Artificial Intelligence (AI) value chain, tapping into both the tokenisation use case and the broader AI economy. If approved, this merger comes at a critical time, as AI adoption among institutions has surged significantly. Singularity Finance will be well-positioned to support and strengthen the growing demand by offering innovative Layer2 solutions, including AI-driven financial services, RWA tokenisation, and on-chain identity management. This strategic move enhances the combined product offerings of the three entities, enabling them to address evolving market needs with a focus on AI-powered innovations.

3. Project Background The proposed merger brings together three key players—SingularityDAO, Cogito Finance, and SelfKey—each contributing unique strengths to form the new entity, Singularity Finance. Below are the roles and expertise of the merging entities:

SingularityDAO: SingularityDAO is a decentralised portfolio management protocol designed to democratise access to sophisticated crypto asset management tools. The upcoming DynaVaults, multi-asset, multi-strategy vaults leveraging AI-enhanced analytics and risk management tools, provide much-needed infrastructure in the volatile world of DeFi.

Cogito Finance: Cogito Finance’s mission is to bring tokenised traditional assets on-chain for increased liquidity, security, and transparency. It offers a suite of carefully engineered, fully transparent, and institutional-grade products. Led by a team of finance and technology experts, Cogito is pioneering the future of on-chain finance.

SelfKey: SelfKey is building a blockchain-based identity system that allows identity owners to truly own, control, and manage their digital identity. Its blockchain-based self-sovereign identity system enables individuals and organisations to find more freedom and privacy. SelfKey empowers individuals and corporations to take back ownership of their identity data. Together, these companies will form Singularity Finance, a new platform that integrates their technologies to provide tokenisation solutions for both AI economy assets and Real-World Assets (RWAs). The merger will enable secure, compliant, and innovative financial services to meet the growing demands of global markets.

4. Merge Plan

4.1 Proposal Updates

• Change Denomination: Total Supply decreased from 50b to 5b
• Conversion Ratios: Updated to reflect new supply
• Utility: Added 40% Burn to Network Transaction Fees
• Updated Vesting Schedules
• Team Allocation: 3-month cliff added, vesting extended to 36 months
• Ecosystem Incentives: Vesting extended to 24 months
• Ecosystem Fund: Vesting extended to 24 months
• Token Distribution
• Team: Supply decreased to 10%
• Ecosystem Incentives: Supply increased to 24%
• Voting Options: ‘Rework the proposal’ changed to ‘Reject the proposal’
• Voting Start: Delayed 12 hours to allow time for feedback on the new proposal

4.2 Proposed Conversion Ratios and Tokenomics As part of the merger, the three existing tokens SDAO, CGV, and KEY will be converted into SFI tokens, thereby creating a single decentralised governance token used across the platform. The token merge brings the utility of the three protocols within a single token. In the initial phase, the SFI token will 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)

4.2 Merge Process The token migration takes place within a dedicated migration portal, where users can exchange their existing tokens (SDAO, CGV, KEY) for the unified SFI token. The process will be as follows:

1. Token Migration Portal: A migration dApp will be launched, allowing token holders to swap their tokens for SFI at the pre-determined conversion ratios.

2. Distribution of SFI Tokens: After migration, the new SFI tokens will be distributed to the wallets of participating users.

Current SDAO staking within SREP pools will have early withdrawal fees set to 0, in order to support the migration to SFI.

4.3 Merge Timeline

• Proposal Submission: 15th October 2024 - Updated proposal submitted 18th October 2024
• SingularityDAO Governance Vote: 21st October 2024 (12:00 PM UTC) – 31st October 2024 (12:00 PM UTC)
• Audit of Vote: 1st November 2024

Following the vote audit on 1st November 2024, the results will be reviewed and validated by SingularityDAO governance. This allows time to finalise the next stages of the merger process, including token migration and integration timelines. Further details will be communicated to the community after the audit is complete and results are confirmed.

5. Strategic Justification The merger of SingularityDAO, Cogito Finance, and SelfKey offers several key strategic advantages:

• Support AI-Fi: By tokenising AI assets and integrating them into existing DeFi applications, this new chain will create powerful new on-chain primitives, enabling more efficient funding sources for AI-driven innovations.

• Tokenise RWAs: The Layer 2 chain will bring RWAs on-chain using Cogito's tokenisation framework, creating decentralised markets where users worldwide can easily participate in a compliant manner, with the support of SelfKey's ID solution.

• AI-Driven Financial Services: The platform will offer robust, transparent AI-powered financial services that automate asset management, risk management, and wealth distribution, leveraging SingularityDAO's AI-driven DynaVaults.

6. Voting Process Voting will take place via the Snapshot platform, and all SDAO token holders are eligible to participate.

6.1 Voting Options:

• Accept the proposal
• Reject the proposal
• Abstain

https://docs.singularityfinance.ai/