Fetch.ai Network (FET)
Most recent update: [June 26, 2023]
What is Fetch.ai Network?
While data can take on many forms, it is generally understood to be a useful piece of information. However, data does not act on its own – it requires some form of third-party intervention to use it. This is where the Fetch.ai Network comes in. It purports to be a decentralized blockchain that delivers an autonomous way for data to market itself to any Internet-of-things (IOT) devices that support the Fetch.ai Network.
In essence, the Fetch.ai Network strives to enable a fully autonomous digital economy using principles of artificial intelligence technology. Wherever and whenever a piece of data can have utility, the network’s autonomous agents will market it to the relevant parties, thus promoting a synergy between hardware and data without requiring the involvement of any intermediary.
Who is behind Fetch.ai Network?
Developed in 2017 as a UK-based project, Fetch.ai is a company that was cofounded by Toby Simpson, Humayun Sheikh, and Thomas Hain. Currently, Sheik occupies the position of CEO and board member, while Simpson and Ward hold the titles of COO and CTO respectively. The company went on to launch the Fetch.ai Network mainnet 1.0 in 2019 and the mainnet 2.0 in 2021.
If his vision for Fetch.ai Network materializes, Humayun Sheikh believes that Fetch.ai could unleash a new era in data aggregation models equivalent to the disruption brought by the likes of Google, AirBnB, and Uber.
How does it work?
The Fetch.ai Network is built on the Ethereum network, which implies that in its native form FET is an ERC20 token (but it also exists as a BEP-20 token on the Binance Smart Chain Network). The network uses a combination of Proof-of-Work (PoW) and Proof-of-Stake (PoS) mechanisms to reach consensus, otherwise known as an interchain protocol. In this case, the interchain protocol is based on the Cosmos-SDK.
The machine learning aspect of the Fetch.ai Network is brought forward by Cosmwasm, a WASM-based smart contract language. It uses an AI principle known as Multi-Agent Systems (MAS), which is comprised of Autonomous Economic Agents (AEAs), Open Economic Framework (OEF), and the Fetch Smart Ledger itself. In addition to aiding with consensus, governance, and identity services, MAS allows the network’s agents of all types to operate both independently and in harmony with one another.
The Fetch.ai Network Token and Tokenomics
FET tokens were launched through the Binance Launchpad, and are currently available for sale on multiple exchanges. The maximum supply is capped at 1,152,997,575 tokens, and as of March 9th 2023, the market cap for FET amounted to US$263 million. There are currently 818,912,300 FET tokens in circulation.
The token distribution for FET is allocated as follows:
- Foundation: 20.0%
- Founders 20.0%
- Token Sale (Seed, Private, and Public Sale): 17.6%
- Future Releases: 17.4%
- Mining: 15.0%
- Advisors: 10.0%
The FET token is purported to serve as a utility token for activities such as network fee payments, governance, identity services, and more. It also helps to secure the network by attaching a fee for transactions on the network, thus preventing spamming attacks.
Since the Fetch.ai Network contains elements of Proof-of-Stake mechanisms, its security and system are maintained by the validators that operate it. Based on individual preferences, users on the network can choose to delegate FET tokens to the validators of their choice, which increases the latter’s ability to shape the direction of the network.
Drawbacks and risks
By relying on Proof-of-Stake as its security mechanism, it indirectly implies that the richer the validator, the greater influence it will have over the network. This may run counter to the idea of utmost decentralization.
In terms of token distribution, the fact that 40% of tokens were retained by the Foundation and its founders could imply that the economics surrounding the Fetch.ai Network are to a large extent beyond the control of the public at large.
Finally, as a network that focuses on artificial intelligence and data aggregation models, it may face an uphill battle with larger incumbents that are already in possession of large troves of data while also working on similar technologies.
Before listing FET on the VirgoCX Platform, VirgoCX performed due diligence on FET and determined that FET is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following:
- The creation, governance, and location of FET and/or its primary development team;
- The supply, demand, maturity and liquidity of FET; and
- Legal and regulatory risks associated with FET.
Statutory Rights under Securities Legislation
VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30th 2022 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
To learn more about the technology behind Fetch.ai Network, check out these in-depth resources here:
- The official site of Fetch.ai Network
- Coinmarketcap’s overview of Fetch.ai Network
- Coingecko’s tokenomics overview of Fetch.ai Network
- Coinbase’s overview of Fetch.ai Network, along with the relevant news and blogs related to FET.