What's going on with Fetch.AI ?

First things first, what is Fetch.AI ?

Fetch.ai is creating a network where little AI programs, called “agents,” can work independently to complete tasks, like booking a hotel room or managing parts of a supply chain, all without human help. These agents are designed to talk to each other and work together to get things done.

The system is built on:

• Agents: the mini-programs that actually do things.

• Agentverse: a hub where these agents are registered and can be accessed.

• AI Engine: helps agents understand and act on human instructions.

• Fetch Network: keeps everything secure and transparent.

  
  

To power this system, Fetch.ai uses FET tokens. These tokens allow people to use the network and keep it running. In short, Fetch.ai aims to make AI-based services easier and more accessible by letting these agents work in a secure, decentralized network.

What happened so far with Fetch.AI ?

Fetch.ai teamed up with two other AI projects, SingularityNET and Ocean Protocol, to create a new group called the Artificial Superintelligence Alliance (ASI). They’re combining their three digital coins (AGIX, OCEAN, and FET) into one shared coin under the ASI name.

Phase 1 (started July 1, 2024):

• The three coins began merging, with AGIX and OCEAN coins switching to FET.

• The group rebranded to ASI, and anyone who held AGIX or OCEAN on major exchanges like Binance saw their coins change to FET automatically.

  
  

Phase 2 (mid-July 2024):

• The ASI coin was fully launched, and Fetch.ai’s network went through upgrades to support it.

• Those who store their coins privately got new tools to switch to ASI themselves.
  

If your coins were on an exchange, they’ve been taken care of automatically. For private wallets, you’ll use a simple online tool to make the switch when you’re ready. This merger is designed to create a stronger, smarter network for AI projects. So In short, FET became a bigger, more versatile coin by merging with other coins (AGIX and OCEAN) from similar AI projects. Now, it’s set up to support a unified AI network under the ASI name.

Earn & Burn

The ASI Alliance just confirmed their intention to work on an “Earn & Burn” mechanism for their FET Tokens.

What is “Earn and Burn”?

The earn and burn strategy has two parts:

1. Earn: As Fetch.ai and its partners generate revenue through various AI-based services, a portion of that revenue is set aside.

2. Burn: A percentage of the FET tokens tied to this revenue are then “burned” (permanently removed from circulation), effectively reducing the overall token supply.

   
   

How It Could Impact FET’s Price

Reducing the supply of FET tokens through burning can create deflationary pressure, which may increase the value of remaining tokens. Here’s why:

• Supply and Demand: As the token supply decreases, demand could exceed supply, potentially increasing FET’s price.

• Offsetting Perceived Dilution: With new alliances and token holders, some existing holders might worry about dilution (decreased value per token). The burn mechanism helps offset this by shrinking the total supply.
  

In short, “earn and burn” aims to strengthen FET’s tokenomics, make holding FET more appealing, and support a healthier market for long-term holders.