Merger of SelfKey into Singularity Finance

Proposal Overview

• Proposal Title: Merger of SelfKey into Singularity Finance
• Proposer(s): SelfKey
• Category: Company Merger
• Utility: AI Economy, Real-World Assets (RWAs), Decentralized Finance

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Introduction

This proposal seeks approval from the SelfKey community to merge SelfKey, SingularityDAO, and Cogito Finance to form a new project 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 tokenization use cases 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 Layer 2 solutions, including AI-driven financial services, Real-World Asset (RWA) tokenization, and on-chain identity management.

This strategic move enhances the combined product offerings of the three projects, enabling them to address evolving market needs with a focus on AI-powered innovations.

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Project Background

The proposed merger brings together three key players—SelfKey, SingularityDAO, and Cogito Finance—each contributing unique strengths to form the new entity, Singularity Finance.

Below are the roles and expertise of the merging entities:

1. SelfKey

SelfKey is building a blockchain-based identity system that allows identity owners to truly own, control, and manage their digital identity.

Its self-sovereign identity system enables individuals and organizations to find more freedom and privacy.

SelfKey empowers individuals and corporations to take back ownership of their identity data, ensuring secure and compliant participation in digital markets.

2. SingularityDAO

SingularityDAO is a decentralized portfolio management protocol designed to democratize 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 decentralized finance (DeFi).

3. Cogito Finance

Cogito Finance’s mission is to bring tokenized 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.

Together, these projects will form Singularity Finance, a new platform that integrates their technologies to provide tokenization solutions for both AI economy assets and Real-World Assets (RWAs).

The merger will enable innovative financial services to meet the growing demands of global markets.

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Strategic Justification

The merger of SelfKey, SingularityDAO, and Cogito Finance offers several key strategic advantages:

1. Support AI-Fi

By tokenizing AI assets and integrating them into existing DeFi applications, Singularity Finance will create powerful new on-chain primitives. This enables more efficient funding sources for AI-driven innovations, fostering growth in the AI economy.

2. Tokenize Real-World Assets (RWAs)

The Layer 2 chain will bring RWAs on-chain using Cogito's tokenization framework. This creates decentralized markets where users worldwide can easily participate in a compliant manner, supported by SelfKey's identity verification solutions.

3. AI-Driven Financial Services

The platform will offer robust, transparent AI-powered financial services that automate asset management, risk management, and wealth distribution.

This leverages SingularityDAO's AI-driven DynaVaults to provide advanced financial tools to a broader audience.

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Benefits of the Merger for SelfKey

The merger brings together the unique strengths and technologies of SelfKey, SingularityDAO, and Cogito Finance to form a formidable entity within the AI-powered finance sector. Below are the key benefits:

1. Combining Complementary Technologies

• SingularityDAO contributes its decentralized portfolio management and AI-driven financial tools.
• Cogito Finance brings expertise in tokenizing traditional assets, with regulatory and technological frameworks already in place.
• SelfKey provides a blockchain-based identity platform, enabling secure and compliant participation through self-sovereign identity solutions.

2. Launching an EVM Layer-2 Chain

The new entity aims to launch an interoperable blockchain network with speed, safety, and sustainable economics embedded in its foundation.

This Layer-2 chain is designed to tokenize and integrate critical segments of the AI economy, fostering a positive ecosystem for growth.

3. Democratizing Access to the AI Economy (AI-Fi)

By tokenizing AI assets, Singularity Finance will allow a broader range of users to participate in the opportunities that the AI value chain offers.

This democratization supports the inclusiveness of the global AI economy, making advanced financial opportunities accessible to all.

4. Tokenizing Real-World Assets (RWAs)

Bringing RWAs on-chain creates decentralized markets where users can earn high-quality, compliant yields.

Cogito Finance's framework ensures increased liquidity, security, and transparency for these assets.

5. Empowering Users with Self-Sovereign Identity

SelfKey's digital identity tools enhance privacy, compliance, and security through blockchain technology.

This advancement streamlines compliance with regulatory requirements and fosters trust among participants in the decentralized ecosystem.

6. Offering Advanced AI-Driven Financial Tools

The platform will provide robust and sophisticated AI-driven financial services that automate asset allocation, risk management, and analytics.

SingularityDAO's upcoming AI-driven DynaVaults will revolutionize finance through decentralization and AI.

7. Synergy and Shared Vision

All three organizations jointly envision a future where blockchain and decentralized AI work together on secure, compliant, and transparent financial opportunities to the masses.

The merger aligns their missions and leverages their collective expertise to accelerate innovation in AI-Fi.

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Merge Plan

1. Proposed Conversion Ratios and Tokenomics

As part of the merger, the three existing tokens—KEY, SDAO, and CGV—will be converted into SFI tokens, creating a single decentralized governance token used across the platform.

The token merge consolidates the utility of the three protocols into a single token. Initially, the SFI token will be available on Ethereum and BNB Chain.

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

• KEY will convert to SFI at a ratio of 1 KEY = 0.1 SFI
• SDAO will convert to SFI at a ratio of 1 SDAO = 8.0353 SFI
• CGV will convert to SFI at a ratio of 1 CGV = 1.0890 SFI

2. Merge Process

The token migration will occur through a dedicated migration portal, where users can exchange their existing tokens (KEY, SDAO, CGV) for the unified SFI token.

The process will be as follows:

Token Migration Portal

A migration dApp will be launched, allowing token holders to swap their tokens for SFI at the predetermined conversion ratios.

Distribution of SFI Tokens

After migration, the new SFI tokens will be distributed directly to the wallets of participating users.

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Vote Timeline

• Proposal Submission: 1st November 2024
• SelfKey Governance Vote: 1st November 2024 (12:00 PM UTC) – 7th November 2024 (12:00 PM UTC)
• Audit of Vote: 8th November 2024

Following the vote audit on 8th November 2024, the results will be reviewed and validated. This allows time to finalize 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.

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Voting Process

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

Voting Options:

• Accept the proposal
• Reject the proposal
• Abstain

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Closing

This merger represents a significant step toward creating a unified platform that harnesses the power of AI, blockchain, and decentralized finance.

By combining the strengths of SelfKey, SingularityDAO, and Cogito Finance, Singularity Finance aims to democratize access to the AI economy, tokenize real-world assets, and provide advanced AI-driven financial services—all while ensuring compliance and security through self-sovereign identity solutions.

Your vote is crucial in making this vision a reality. We look forward to your participation and feedback.

We encourage all community members to participate in this pivotal decision that will shape the future of SelfKey and its role in the evolving AI and blockchain landscape.

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Please see more details regarding the proposed merger in the Singularity Finance Litepaper:

https://docs.singularityfinance.ai/