Ocean Protocol Exits ASI Alliance to Secure Independent Tokenomics

Ocean Protocol Foundation has abruptly withdrawn from the Artificial Superintelligence (ASI) Alliance, a collaborative effort formed in March 2024 with Fetch.ai and SingularityNET to consolidate their AI-focused ecosystems under a unified token. The foundation cited the need to secure independent tokenomics and funding as the primary reason for its exit [1]. This decision marks a significant shift in the decentralized AI landscape, as the alliance had previously aimed to unify the OCEAN, AGIX, and FET tokens under a shared framework. Ocean Protocol's withdrawal, effective immediately, includes the resignation of its designated directors from the alliance [9].

The ASI Alliance was initially structured to merge the AGIX, OCEAN, and FET tokens into a single ecosystem, with FET serving as the base token. Holders of AGIX and OCEAN could voluntarily convert their tokens to FET at fixed rates, while unconverted tokens remained valid on their original contracts [3]. By July 2024, approximately 81% of the OCEAN supply had been converted to FET, leaving around 270 million OCEAN tokens in 37,334 addresses [9]. The de-pegging of OCEAN from FET allows the token to be re-listed separately on exchanges such as Coinbase, Kraken, and Binance US, offering holders renewed flexibility [1].

Ocean Protocol's departure has sparked mixed reactions. The ASI Alliance acknowledged the transition as "natural" and emphasized that its core technology stack and development momentum remain unaffected [1]. Fetch.ai echoed this sentiment, stating that the alliance's mission to advance decentralized AI infrastructure remains "unchanged" [1]. Despite the split, the alliance's token, FET, saw a 3.8% decline following the announcement, reflecting market uncertainty [1]. Meanwhile, Ocean Protocol outlined plans to fund future development through profits from spin-off technologies, including a buyback and burn mechanism to reduce OCEAN supply [9].

The alliance's original vision included pooling resources to build a shared infrastructure for decentralized AI, with optional participation from member projects [3]. However, the fracturing of the collaboration underscores the challenges of aligning diverse token economies. Ocean Protocol's decision to prioritize independent funding and tokenomics highlights the tension between centralized coordination and decentralized governance in blockchain ecosystems. The project's blog post emphasized that future development efforts are "fully secured," with supply reduction mechanisms in place to enhance OCEAN's value proposition [9].

For the ASI Alliance, the loss of Ocean Protocol may necessitate recalibrating its tokenomics strategy. The alliance had previously expanded its ecosystem by integrating CUDOS in September 2024, absorbing its network and token supply to bolster decentralized compute infrastructure [3]. While the alliance maintains that its foundational purpose remains intact, the departure of a key member raises questions about the sustainability of cross-project collaborations in the AI space. Analysts note that the alliance's success will depend on its ability to maintain developer and investor confidence amid structural changes [1].

Ocean Protocol's exit also has implications for token holders. The remaining OCEAN supply can be converted to FET via a Fetch.ai-managed bridge at a rate of 0.433226 FET per OCEAN [9]. However, the de-pegging allows holders to retain OCEAN on exchanges such as SushiSwap and Upbit, providing liquidity options previously unavailable. This move could attract traders seeking exposure to OCEAN's independent trajectory, though it also introduces volatility risks as the token navigates a post-alliance market [1].

The broader AI token market has faced volatility in recent months. A delayed ASI token merger in July 2024, initially postponed due to technical complexities, contributed to an 8% drop in FET, AGIX, and OCEAN prices [4]. While these tokens have since recovered, the withdrawal of Ocean Protocol adds to a narrative of instability in the AI sector. Investors are now monitoring whether the ASI Alliance can stabilize its tokenomics and whether Ocean Protocol's independent strategy will enhance OCEAN's long-term appeal [1].

---

Source: [1] The Block (https://www.theblock.co/post/373977/ocean-protocol-withdraws-from-artificial-superintelligence-alliance) [2] article.wn.com (https://article.wn.com/view/2025/10/09/Ocean_Protocol_Withdraws_from_ASI_Alliance_OCEAN_Token_DePeg/) [3] Ocean Protocol Blog (https://blog.oceanprotocol.com/navigating-the-asi-token-merger-329becf78cfe) [9] Ocean Protocol Blog (https://blog.oceanprotocol.com/ocean-protocol-foundation-withdraws-from-the-artificial-superintelligence-alliance-4619c4604ea3)