- PAAL has withdrawn its proposed membership of the Artificial Superintelligence Alliance following community backlash
- Token holders protested at the 180-day lockup and merger fee
- PAAL and ASI will instead focus on potential collaborations, aiming to advance AI and crypto technology together
AI project PAAL has decided to withdraw its proposal to join the Artificial Superintelligence Alliance (ASI) following community outrage. The project cited the importance of community opinion in its decision to backtrack, noting that “proceeding with a vote was unnecessary” after the barrage of negative feedback received. The merger would have seen token holders faced with a 180-day lockup as well as a 5% merger fee, with the news causing the token to plummet in price.
Community Reaction Leads to a Rethink
The initial announcement of a proposed ASI membership generated strong reactions from PAAL’s community, as well as dropping the token price by 65%, with concerns raised over the potential impact on PAAL’s core values and mission. Holders were outraged by the lockup and merger fee conditions, and made it clear they would vote against the proposal when it came up on November 18.
Responding to these sentiments, PAAL engaged in discussions with the community and ultimately decided to withdraw from the proposed merger:
🧵 – 1️⃣
🔔 Withdrawal of the PAAL and @ASI_Alliance Merger Proposal:
After careful consideration and discussions with both communities and the council, we’ve decided to withdraw the proposed merger.
We prioritize the community’s interests, which made it evident that…
— PAAL AI 🧠🤖 (@PaalMind) November 13, 2024
The decision went down well with supporters, who relieved that they would not be negatively impacted:
This is the most important message, the fact that you guys have acknowledged the mistake in communication. Thank you.
— 🔥 ØVɆⱤⱠØⱤĐ 🔥 (@_I_Am_Overlord_) November 13, 2024
Continued Synergies Without Membership
Despite this decision, PAAL emphasized that its goals still align closely with the ASI’s, particularly in areas like advancing AI technology and fostering wider crypto adoption. “Our aim is to build a future where both communities can thrive by integrating decentralized AI capabilities and leveraging shared resources and advanced technology,” PAAL stated. Both organizations will now explore ways to work together without formal membership, focusing instead on shared objectives that can benefit their respective communities.
Reflecting on the experience, PAAL expressed a commitment to more transparent communication and alignment with its community’s vision. The company acknowledged any “missteps in timing and communication” and reiterated its dedication to learning from the incident. “Our intentions have always been to act in the best interest of our communities, and we are committed to learning from this experience to better serve you in the future,” they stated, emphasizing a community-first approach.
The token has rallied 95% on the news, although it is still down 50% on the pre-announcement price.
