- The ASI Alliance has proposed integrating Paal, an AI chatbot company, but the token conversion terms have raised 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 merger 5% fee deducted
- Paal token holders face a lengthy 180-day vesting period for converted tokens, sparking concerns about limited access to funds and potential devaluation
The PAAL community has reacted with anger at its proposed membership of the Artificial Superintelligence Alliance (ASI), a move that saw the PAAL token drop 65%. The ASI tweeted about the proposed addition of PAAl to the ASI, a development that pegged the value of each PAAL token at $0.22, 25% less than its value at the time of the announcement. The proposed addition of PAAL is subject to a community vote, with signs that the vote will be massively voted down.
Conversion Terms Under Fire
The core frustration among PAAL token holders was the 6.24:1 token conversion ratio, claiming it 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 is a mandatory 180-day vesting period on converted tokens, meaning 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.
The reaction on X was swift and brutal:
Higher price than the current price of FET.. lower price than the current price of PAAL(Well, not any more)
Horrible deal. Hard no. Really just deciding whether or not to cut losses and talk shit about PAAL as the biggest random mistake of the bull run.
— Ryan (@ryantcwynar) November 12, 2024
180 day vesting on a forced conversion
I doubt the proposal goes through – doesn’t make much sense
— Johnny (@CryptoGodJohn) November 12, 2024
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.
The community will have the chance to vote on the proposal on 18 November, although no mechanism has yet been revealed; however, it appears that it will be massively voted down.
