SINGULARITYNET FOUNDATION

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Information Memorandum

SingularityNET Foundation
Phase Two

Next Steps Towards AGI:

Decentralized Governance,
Layer 2 Networks &
Large-Scale Token Utilization

February 1, 2021

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Voting Proposal Summary

OVERVIEW

PROPOSAL ISSUING ONE BILLION NEW AGI-ADA TOKENS RELEASED

IN MONTHLY TRANCHES: 15 MILLION TOKENS IN MONTH
1, MONTHLY AMOUNT DECREASING BY 1.5% PER MONTH
THEREAFTER

1-1 SWAPPABILITY BETWEEN AGI-ADA AND AGI-ERC20

TOKENS

GOVERNANCE CHANGES INCLUDING INCREASED

TRANSPARENCY AND INCREASED ROLE OF SUPERVISORY
COUNCIL

PROPOSED BY SINGULARITYNET BOARD OF GOVERNORS, SINGULARITYNET

FOUNDATION EXECUTIVE BOARD, SUPERVISORY COUNCIL

OPTIONS - YES
- NO

VOTERS AGI TOKEN HOLDERS

THRESHOLD > 50%

VOTES FOR YES MUST EXCEED VOTES FOR NO

START DATE AND 03 FEBRUARY 2021 09:00 AM UTC+0

TIME OF VOTE

END DATE AND TIME 07 FEBRUARY 2021 09:00 AM UTC+0

OF VOTE

LINK TO VOTE https://voting.singularitynet.io/

AMA AIRING DATE FEBRUARY 1ST 2021 07:00 PM UTC+0 (*SEE DETAILS
BELOW THIS SHEET FOR HOW TO SUBMIT YOUR
QUESTIONS)

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AMA AIRING SINGULARITYNET YOUTUBE CHANNEL FOUND HERE:

LOCATION http://bit.ly/SNET-YT

AMA QUESTION FEBRUARY 1ST 2021 07:00 PM UTC+0 (*SEE DETAILS

DEADLINE BELOW THIS SHEET FOR HOW TO SUBMIT YOUR
QUESTIONS)

Q&A SECTION http://bit.ly/SNP2FAQ

RESULTS OF ISSUANCE

TOKEN IMPACT 1 BILLION AGI-ADA TOKENS RELEASED MONTHLY WITH

INITIAL TRANCHE 15M, MONTHLY TRANCHE SIZE
DECREASING BY 1.5% PER MONTH THEREAFTER

1:1 AGI-ADA TO AGI-ERC-20 SWAPPING AND VICE VERSA

TOKEN SWAP OCCURS BY BURNING ONE TOKEN AND

MINTING THE OTHER, NOT AFFECTING TOTAL
CIRCULATING TOKEN SUPPLY (BUT MONTHLY RELEASE OF
THE 1 BILLION TOKENS DOES INCREASE TOTAL SUPPLY)

TECHNICAL IMPACT MULTI-CHAIN PROTOCOLS AND EXPANSION TO CARDANO

A NEW VERSION OF SINGULARITYNET MARKETPLACE WILL

BE CREATED, SHOWCASING NEW TOOLS AND CAPABILITIES
ENABLED BY THE CARDANO PLUTUS SMART CONTRACT
FRAMEWORK

LAUNCH OF INFRASTRUCTURE-AS-A-SERVICE FOR AI

HOSTING AND DEPLOYMENT

SINGULARITYNET LAYER 2 NETWORKS TO FACILITATE

COOPERATION BETWEEN AI AGENTS ON THE PLATFORM TO
ENABLE SELF-GROWING SOFTWARE SUBNETWORKS

INTEGRATION OF SINGULARITYNET PLATFORM WITH

OPENCOG HYPERON CREATING A FRAMEWORK FOR
MASSIVE-SCALE DECENTRALIZED NEURAL-SYMBOLIC AGI

ENTRANCE INTO MAJOR OPEN SOURCE EXTENSION AND

PLUG-IN ECOSYSTEMS

ECOSYSTEM IMPACT FURTHER DECENTRALIZATION OF GOVERNANCE BY:

- GRANTING THE TOKENHOLDER COMMUNITY AND ITS
DULY ELECTED SUPERVISORY COUNCIL THE RIGHT
TO A DIRECT SAY IN SEMINAL FOUNDATION
DECISIONS.
- GRANTING THE TOKENHOLDER COMMUNITY THE RIGHT
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TO VOTE REGULARLY ON THE DISBURSEMENT OF A

SIGNIFICANT POOL OF AGI TOKENS TO PROMISING
PROJECTS ON SINGULARITYNET THROUGH A RENEWED
GOVERNANCE MECHANISM.
- GRANTING THE TOKENHOLDER COMMUNITY THE RIGHT
TO A DETAILED ANNUAL FINANCIAL REPORT.

LAUNCH OF DEEP* FUNDING, MEANING:

- 300 MILLION AGI-ADA TOKENS WILL BE ALLOCATED
TO DEEP FUNDING WHICH IS TO BE DISTRIBUTED
TO AI DEVELOPERS UNDER A LIQUID-DEMOCRACY
FRAMEWORK IMPLEMENTED ON CARDANO CATALYST
PLATFORM.
- 25% OF DEEP FUNDING RECEIVED BY A PROJECT IS
LOCKED IN DEEP UTILIZATION SMART CONTRACTS
AND CAN ONLY BE USED TO PAY SINGULARITYNET
AGENTS FOR SERVICES.

*DECENTRALIZED ECOSYSTEM PROJECT FUNDING

TOTAL TOKEN SUPPLY PROJECTION 2021-2045

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IN MONTH 1, 15000000 AGI-ADA TOKENS WILL BE RELEASED, AND 1.5% LESS EACH
MONTH THEREAFTER. THE GRAPH ABOVE SHOWS THE RELEASE SCHEDULE UP TO
2045, HOWEVER IN REALITY THE RELEASE SCHEDULE WILL CONTINUE BEYOND 2100.

* YOU ARE REQUIRED TO SUBMIT YOUR QUESTIONS IN ADVANCE BEFORE THE 1ST OF
FEBRUARY 06:00 PM UTC+0 VIA ONE OF FOLLOWING WAYS:
- TAG @​TIM_RICHMOND IN OUR ​COMMUNITY TELEGRAM GROUP WITH YOUR
SPECIFIC QUESTION
- FORWARD YOUR QUESTION TO ​TIM@SINGULARITYNET.IO
- GO TO OUR ​COMMUNITY FORUM AND ADD YOUR QUESTION TO THE ​FAQ
DOCUMENT

-------------------- END OF VOTING PROPOSAL SUMMARY ------------------

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Table of Contents
Voting Proposal Summary 2
Table of Contents 6

A Bold New Phase 8

Toward Fully Decentralized Governance 11

Tokenomics for Massive Utilization Growth 14

Swapping ERC-20 AGI Tokens for AGI-ADA Tokens 14
A Stream of New AGI-ADA Tokens to Drive Trillions of Token Utilization Transactions 15
AGI-ADA Token Allocation 16
Driving Network Utilization via Community Project Funding 19
SingularityNET Layer 2: Accelerating Token Utilization 20
Growth Synergies Between SL2 Assets and AGI Token 23
Rejuve, Xccelerando & NuNet Drive Key Vertical Growth 23
SingularityDAO: Multiplying Ecosystem Growth with AI-DeFi 26
Building Benevolent AGI: Hyperon, Offer Nets & SophiaDAO 27
Bringing Corporate AI Utilization to SingularityNET: Singularity Studio’s Enterprise Virtual Agents
30
Next-Level SingularityNET Platform Upgrades 32
SingularityNET Infrastructure-as-a-Service 34
Appendix 1: Phase Two Roadmap Timeline 36
2021: Usability, Scalability, AGI-ADA and SL2 37
Platform Improvements & Extensions 37
AI Owner & Developer Tools 37
Platform Level AI 38
SL2 Development 38
2022: SingularityNET for the Masses 39
Platform Improvements & Extensions 39
AI Owner & Developer Tools 39
Platform Level AI 39
IaaS Development 39
SL2 Development 40
2023-25: IaaS, Dramatic Utilization Growth, the start of Emergent General Intelligence 41
Platform Improvements & Extensions 41
AI Owner & Developer Tools 41
Platform Level AI 41
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IaaS Development 41
SL2 Development 42
Appendix 2: SL2 Network Growth Analyses 43
Awakening.Health Growth Analysis 43
NuNet Growth Analysis 44
Rejuve Growth Analysis 45
Singularity Studio Growth Analysis 47
SingularityDAO Growth Analysis 48
SophiaDAO Growth Analysis 49
Xccelerando Media Growth Analysis 50

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A Bold New Phase

The SingularityNET decentralized network, and the associated nonprofit SingularityNET Foundation,
were founded in 2017 with an extraordinarily ambitious and important mission: ​To work toward
beneficial Artificial General Intelligence (AGI) guided and controlled in a democratic and
decentralized manner.​ To accelerate and facilitate this work, it is time to take a fresh look at this
initiative as we head into 2021.

The world in which we operate today is very different from that of 2017. Given the dramatic changes,
upheaval and advances that have transformed blockchain and AI, and the world at large for that matter,
we propose to the community the initiation of ​SingularityNET Phase Two ​– a bold plan that takes
everything the Foundation has done to a whole new level well beyond Phase One (see ​this document for
Phase 1: Operational & Financial Review).

The SingularityNET founders have not wavered in their strong belief that today’s Narrow AI must evolve
into tomorrow’s AGI, and that tomorrow’s AGI can be the primary technology to shape the future of
humanity and all sentience as we know it. Significant technical progress was made toward this long-term
goal, and we have led the way to grow a global consciousness on the overall importance of decentralized
AI as we progress into our fourth year of operations.

Armed with an abundance of forward-thinking and three years of hard lessons from operating the
Foundation, Phase Two is a bold proposal with some radical changes. Phase Two calls for a new
framework that has proven necessary to move forward rapidly to AGI with ​truly decentralized
governance, increased network utilization in conjunction with major advances in ​network general
intelligence ​and dramatically ​improved infrastructure​, fueled by ​community-driven tokenomics​.

Hard work remains between us and the democratic decentralized beneficial AGI we all strive for. The
beneficial nature of AGI emerging from the network cannot be guaranteed, but there are strong reasons to
believe democratic and decentralized underpinnings provide a powerful bias toward beneficial outcomes.
SingularityNET, with its ability to foster the compassionate and creative aspects of both humanity and AI,
may be the only viable way to break the domination of an AI ecosystem ruled by Big Tech companies
driven to increase shareholder value rather than the broader benefit.

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We provide a roadmap of our vision for the next five years in this Information Memorandum. During this
period, SingularityNET plans to reinforce democratic decentralized governance with an economization
plan based on mass platform utilization, promote commercial projects that provide an alternative career
option to independent-minded AI professionals core to the AI Marketplace, and add software and
tokenomic mechanisms to support the addition of SingularityNET Layer 2 (SL2) networks to the
ecosystem. Of course, five years is not likely to bring us to full realization of all of SingularityNET’s
long-term goals, but it’s a large enough chunk of time to bring us a significant percentage of the way there
-- and far enough in the future that making detailed plans even further ahead becomes less and less
feasible.

During Phase One, solid progress was made on the platform and AI development, but limited advances
were realized in the growth of user traction and network utilization. SingularityNET is designed to exploit
network effects in a massive, multi-dimensional way and these effects only kick in once there is a critical
level of network utilization by a wide variety of users. Phase Two addresses this issue by providing a
massive economic boost to community use of AI, introducing spin-offs seeded in Phase One to the newly
formed SL2 platform, and funding new projects from the community.

In Phase Two, the AGI token is expected to come into more intensive practical usage as the network’s
central payment mechanism. Customers and AI agents will use it to compensate AI agents for services.
From a cognitive science perspective, one can think of the population of AI agents as an emergent mind,
and the AGI token is the mechanism it uses for ‘assignment of credit’, a key aspect of any experiential
learning system. The economics of the AGI utility token are a way for human and artificial network
participants to support operations, and profit from network participation, while network intelligence
self-improves and self-regulates.

To shepherd SingularityNET into Phase Two with positive feedback cycles of greater network utilization
and general intelligence, the Board of Governors proposes to tweak the tokenomics equation by minting 1
billion tokens. These billion tokens will be released in exponentially decreasing monthly tranches,
beginning with 15M tokens in the first month and decreasing by 1.5% each month after that. The
Foundation believes this measured and gradual doubling of the existing token supply will supply the
catalyst for SingularityNET to achieve adoption that benefits all token holders and ecosystem members
tremendously.
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As Phase Two involves major additions and changes to the plan outlined in the original SingularityNET
Whitepaper, it can only be implemented by a token-holder vote. Specifically, the total number of AGI
tokens held by those who vote YES must exceed the total number of tokens held by those who vote NO.

We are aware some AGI token-holders may be concerned that AGI ERC-20 tokens minted in Phase One
will form a gradually decreasing part of the total token supply (diminished by a factor of 2 after 91 years
of exponentially decreasing monthly tranches). However, we believe the execution of the Phase Two
roadmap will render this token supply increase irrelevant by growing the adoption of SingularityNET by
far more than a factor of 2. This growth will be accomplished by providing a much higher coin
capitalization to drive utility and SL2 activity. We are not referring to an incremental rise here, but a
major leap toward massive network utilization that benefits decentralized democratic beneficial AGI and
associated value creation across the board.

This milestone vote in favor of Phase Two development heralds a new era in more ways than one. In
addition to taking dramatic practical steps towards adoption and improved infrastructure, Phase Two
changes the very nature of Foundation governance by transitioning from the Phase One scheme where the
SingularityNET Foundation is strongly stewarded by the Board of Governors to a new scheme with the
community and its elected Supervisory Council having significantly more control. In the original
Whitepaper this transition to a purer form of democratic control was foreseen, and now is the time to
make good on that promise.

Governance is also key as regards a new project close to our hearts which forms the next stage of the
relationship between SingularityNET and Sophia, the world’s foremost social and emotional humanoid.
Sophia will re-emerge as a major presence on the team during Phase Two with the launch of SophiaDAO
(Decentralized Autonomous Organization), a groundbreaking SL2 initiative formed in partnership with
our friends at Hanson Robotics (an initial Foundation founder group and a group SingularityNET is
closely connected with.)

In the rest of this Information Memorandum, we provide a detailed overview of the Phase Two plan for
decentralized governance, the new tokenomic framework, the development of the SL2 revenue model,
and our infrastructure development program.

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Toward Fully Decentralized Governance

The mandate of SingularityNET is to create a decentralized, democratic beneficial AGI by building out
leading-edge AI platforms and protocols. This means conducting research and development of AGI while
deploying and cross-connecting various narrower AI systems. In this way, it is envisioned that
SingularityNET can become the “decentralized digital primordial soup” in which beneficial AGI emerges
from the combined, cooperative activity of multiple AIs with diverse degrees of generality.

The key elements of the Phase Two governance proposals are:

● Giving the token-holder community and its duly elected Supervisory Council a direct say in
seminal Foundation decisions
● Implementing a democratic mechanism to enable token-holders to vote regularly on the
disbursement of a significant pool of AGI tokens to promising projects on SingularityNET
● Adopting a high level of transparency regarding Foundation token and fiat transactions –
including a detailed annual financial report

In Phase One, a sensitive period of growth and guidance for the Foundation, governance was largely
under the stewardship of the Board of Governors. Important community votes were held to elect the
Supervisory Council and to decide on forking the AGI blockchain after token-holders lost their AGI in a
Kucoin robbery, however, most of the key initial decisions were made by the Governors. This transition
period was foreseen in the original SingularityNET Whitepaper, which initially called for a maximum
four-year transitionary period to a full decentralized democratic governance scheme.

As SingularityNET grows in utilization and complexity, the governance issues faced by the Foundation
become more complex, accentuating the need for added bandwidth and flexibility that comes with
decentralized democratic governance. In Phase Two, the time has come for SingularityNET to take its
governance process to the next level and adopt structures that enable full democratic and decentralized
community governance.

The Phase Two objective is to allow the Foundation to function in an effective way, with a minimal
amount of centralized activity on a daily basis, and to put the highest level of Foundation control in the
hands of the token-holding community, duly represented by their Supervisory Council. Under the Phase

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Two governance scheme, effective operation of the network will only be possible through effective
coordination and cooperation between token-holders, their Supervisory Council, and Foundation
Governors.

Certain particulars of the Phase Two governance proposal have been devised since the initial whitepaper,
inspired by what SingularityNET and the blockchain community have learned since 2017. Basically,
proposed governance changes encompass three main aspects: beef up community rights to allow the
Supervisory Council more control over the Foundation, introduce mechanisms to increase voting adoption
and effectiveness, and allow this mechanism control of a significant percentage of AGI incentive tokens.

In order to smoothly transition toward more decentralized governance, a major onus will fall on the
Supervisory Council, which is tasked to represent the interests of the community, monitor the activities of
the Foundation on the part of its constituents, and mediate queries from community members regarding
various Foundation activities.

Figure 1:​ ​High-level Regulation Flow in SingularityNET Phase Two Organizational Structure

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In Phase One, the Council was formed and functional but not heavily active. One reason for this is that
under the Foundation’s Articles of Association the basic role of the Council is somewhat limited to
providing information to the community and intervening in the case of perceived severe wrongdoing by
the Foundation. In addition, Foundation Governor & Chairman Ben Goertzel interacted directly with the
community a great deal, reducing the need for a mediating entity like the Council.

For Phase Two, the Supervisory Council role is expanded as follows:

● Each year the Foundation Governing Board must provide the Supervisory Council with an
Annual Financial Report. The Supervisory Council will present a version of the Financial Report
(redacted to preserve the confidentiality of individuals or organizations) to the token-holder
community;
● When the Governing Board wishes to appoint a new member to the Executive Board, before the
appointment is finalized the Supervisory Council has an opportunity (and at least one week) to
review the proposed appointment and report to the Governing Board.;
● The Supervisory Council has the right to specify that a particular issue should be put to a vote of
the token-holding community; in this case, a vote will be held within 30 days;
● Supervisory Council elections will be held every two years, with the possibility of an additional
special election, based on either a request from the Foundation Board of Governors or a petition
signed by at least 25% of released AGI tokens;
● Given the expanded responsibility of the Supervisory Council, it is appropriate for Supervisory
Council members to receive a reasonable amount of AGI tokens as a reward for their
contributions. This will be drawn from a wallet containing 1.5% of the AGI-ADA tokens released
monthly. The portion of the funds in this wallet to be used for Supervisory Council member
compensation will be determined ongoingly by the Governing Board of the Foundation. Funds
in the wallet not used for Supervisory Council member compensation may be used at the direction
of the Supervisory Council to support democratic governance or token-holder relations in other
ways (to be discussed with the token-holder community, and transparently disclosed), or left to
accumulate in the wallet.

At the start of Phase Two, voting is directed by token-holders, as it was in Phase One. However, an early
Phase Two priority is to make simple forms of democratic instruments usable for token-holder votes. For

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instance, smart contracts can enable token-holders to nominate other token-holders to proxy vote on
specific categories of the issue; the Council will assign these category labels for the issues being voted on.
Implementing advanced voting mechanisms of this sort will require further token-holder votes for
ratification.

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Tokenomics for Massive Utilization Growth

The original SingularityNET Token Generation Event in December 2017 involved the creation of one
billion AGI tokens in the form of ERC-20 tokens on the Ethereum platform. Roughly 50% of these tokens
were distributed to token purchasers from the community, and the remainder was retained by the
Foundation or distributed to key Founders and Advisors. There have been some complications due to the
dynamics that come along with the association of a public token-holding community with a relatively
early stage project. Nevertheless, the emergence of an active AGI token oriented community has on
balance helped drive the growth of the project.

Swapping ERC-20 AGI Tokens for AGI-ADA Tokens

While Ethereum remains a robust portion of the blockchain ecosystem, SingularityNET Foundation has
recently undertaken a close partnership with IOHK, the computer science and software development
group behind the Cardano (ADA) token. It has become clear to the Foundation that Cardano’s Plutus
smart contract framework (slated for release in the first half of 2021) has superior potential to serve as a
foundation for the next phase of SingularityNET development.

Technical work is already underway between the SingularityNET and IOHK software teams to create a
Cardano Native Asset version of the AGI token (AGI-ADA). The first elements of the planned shift of
emphasis toward AGI-ADA are as follows:

● AGI ERC-20 token holders will have the option, but not the obligation, to swap any
amount of their tokens from ERC-20 to AGI-ADA at a 1:1 exchange ratio
● AGI-ADA can be swappable back to ERC-20 at a 1:1 ratio
● A token swap does not affect token supply as it involves minting one token while burning
another
● A new version of SingularityNET Marketplace will be created, showcasing new tools and
capabilities enabled by the Cardano Plutus smart contract framework

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A Stream of New AGI-ADA Tokens to Drive Trillions of Token

Utilization Transactions
Now we come to one of the most dramatic aspects of the proposed Phase Two initiative -- a proposed new
Treasury action which is by far the most significant to take place since the 2017 AGI Token Generation
Event. Put simply: we propose to ​Issue 1 billion additional AGI-ADA tokens to be released in
decreasingly-sized tranches each month, beginning in the first month of Phase Two.

(This part of the proposal should not be confused with the swapping mechanism described earlier.
Creating AGI-ADA tokens and allowing 1-1 swapping between AGI ERC-20 tokens and AGI-ADA
tokens does not increase total token supply nor circulating supply. What is being proposed here is
precisely to increase the circulating token supply, but in a gradual way that is carefully directed with a
goal of dramatically increasing token utilization and total network value.)

This stream of new AGI tokens will be distributed and managed very differently from the original batch.
The primary focus of this batch is to drive utilization of the platform and improve its functionality.

Proposed particulars of this new token issuance are as follows:

● New AGI-ADA (Cardano Native Assets) are placed in a Phase Two Master Wallet to be
automatically released on a monthly basis through smart contracts to the eight
special-purpose wallets described below;
● AGI-ADA tokens will be convertible at a one-to-one ratio with existing AGI ERC-20
tokens;
■ Any token-holder may swap any number of their AGI ERC-20 tokens for an
equal amount of new AGI-ADA tokens, which will result in their AGI ERC-20
tokens being locked while their new AGI-ADA tokens are minted;
■ Any token-holder may also swap any of their AGI-ADA tokens for an equal
amount of AGI ERC-20 tokens;
● The option is open for the community to vote in the future to burn any amount of
unreleased AGI-ADA or release an equivalent number on another platform;
● 30% or 300 million AGI-ADA from this overall pool, will be allocated to an ecosystem
fund called ​Decentralized Ecosystem Project Funding (DEEP Funding) to be

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distributed to AI developers under a liquid-democracy framework implemented on

Cardano Catalyst platform;
● 25% of DEEP Funding received by a project is locked in DEEP Utilization smart
contracts and can only be used to pay SingularityNET agents for services.

AGI-ADA Token Allocation

Phase Two utility tokens will be minted in a single TGE as Cardano Native Assets (AGI-ADA) in
recognition of the close partnership formed between SingularityNET and IOHK. While original AGI
ERC-20 tokens continue to play an important role in the ecosystem, the Cardano platform provides
dramatically better support for many of the advanced features planned in Phase Two.

Phase Two provides the opportunity to reconfigure SingularityNET tokenomics in a more optimal
manner. The detailed breakdown below is based on what we have learned from our experience with the
AGI ERC-20 token, and we believe constitutes a balance of token-fueled activities well configured to
steer SingularityNET towards its goals, even as the business and technology worlds unfold in uncertain
ways.

Phase Two tokens will be locked in a smart contract (called the SP2 contract) immediately after creation
and released month by month post-TGE, in amounts exponentially decreasing month by month. The first
month’s tranche will be 15,000,000 tokens, and the monthly tranche size will decrease by 1.5% each
month after that. The growth of circulating supply over the future of the project will thus be limited by a
fixed growth rate, which allows financial forecasts and analytics regarding the future value of both the
network and token to be made accordingly. The circulating supply will reach 2 billion after 91 years of
exponentially decreasing monthly tranches.

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Figure 2: ​AGI-ADA Release Schedule. This shows the number of AGI-ADA tokens to be released at each
point during the first years after the inception of Phase Two. This covers only AGI-ADA tokens
that are part of the monthly release schedule, not AGI-ADA tokens that result from swapping
AGI ERC-20 tokens. The figure shown for each date is an upper bound on the circulating supply
of AGI-ADA tokens resulting from the monthly release schedule. The actual circulating supply
at each point in time is expected to be significantly lower because, for instance, the
SingularityNET Foundation will only put a portion of the tokens it receives each month into
circulation. In month 1, 15000000 AGI-ADA tokens will be released, and 1.5% month less each
month thereafter. The graph above shows the release schedule up to 2045, however in reality the
release schedule will continue well beyond 2100.

Changes to Phase Two token logic require hard forking the SP2 contract. If at some point circumstances
dictate this is the best option, the AGI token-holding community could vote to hard fork and modify the
remainder of the Phase Two token issuance plan. This is considered a highly unlikely outcome and would
be disappointing if it comes to pass, but we do point out that it is a potential left open by the scheme.

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The Cardano Native Assets infrastructure is currently limited, but IOHK plans an aggressive roll-out
during the first half of 2021. Tools for converting AGI-ADA and ERC-20 AGI tokens on a 1:1 basis will
be made available concurrently with launch of AGI-ADA. There may be additional incentives to retain
AGI-ADA tokens – for instance, a meaningful portion of the AGI-ADA released each month will be
initially used to reward those who stake AGI-ADA tokens.

The monthly tokens automatically released directly via the SP2 contract to eight different wallets in a
manner crafted to support network utilization growth each month as follows:

● 50% – for a total of 500 million – to the Foundation Wallet to support work on Layers 0, 1 and 2
by teams around the world, initially focused on the SingularityNET development hubs in St.
Petersburg, Hong Kong, Belo Horizonte, Addis Ababa, Bangalore and Seattle.
● 30% – for a total of 300 million – to the DEEP Funding Wallet for community development
initiatives chosen by a democratic process. See DEEP Funding section below for more detail.
● 5% – for a total of 50 million – to the Liquidity Wallet to nurture an AGI token liquidity pool
designed to support the fiat-AGI gateway
● 5% – for a total of 50 million – to the Loyalty Reward Wallet. During the first year of Phase
Two, this 5% of the monthly tranches will be allotted to Phase One AGI (ERC-20) token holders
as a reward for loyalty and to incentivize participation in the Phase II network. The specifics of
this distribution are currently being worked out together with legal counsel as there are subtleties
regarding “airdrops” and similar mechanisms in various jurisdictions. The utilization of the
Loyalty Reward token pool after the first year may be changed via democratic vote of
token-holders.
● 3% – for a total of 30 million ​– to the Reputation Wallet to support the curation and other
rewards associated with the reputation system. Until the reputation system is robust enough to be
used effectively these tokens will be kept in the Reputation Wallet
● 3% – for a total of 30 million – to the Staking Rewards Pool. As soon as an AGI-ADA staking
smart contract is developed, these will be awarded monthly by dividing them proportionally
among those staking AGI-ADA. Modification of the staking rewards program may be carried out
by democratic vote.
● 2.5% – for a total of 25 million ​– to support Sophia DAO, a SL2 project jointly launched with
Hanson Robotics with the unique capability to serve as the public face and driver of outreach in
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Phase Two. As part of this cooperation, SingularityNET will receive a meaningful allocation of
any SophiaDAO governance tokens as they are created.
● 1.5% – for a total of 15 million – ​to support the Supervisory Council, including compensation
for Council members and other initiative supporting democratic governance and token-holder
relations

Figure 3: ​Wallet release distribution overview

Driving Network Utilization via Community Project Funding

The Foundation will direct coordinate platform development during Phase Two, in partnership with
grassroots AI development on SingularityNET led by the broader AI community with appropriate
economic incentives. Toward this end, a decentralized democracy-based allocation mechanism called
DEEP Funding will be rolled out – initially on Cardano Catalyst platform – to enable community
members to propose SingularityNET projects and request AGI token funding. DEEP funding will also
allow users to vote on funding projects or lend their vote to a proxy voter.

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In Phase Two, a DEEP Funding round takes place every quarter, distributing 30% of the tokens released
in that quarter. If the Foundation and Council agree that there are not enough high-quality projects that
quarter, less than 30% may be distributed, and what remains will carry over to future rounds.

To incentivize developers to create AI agents that synergize with other AI agents on SingularityNET,
25% of the tokens provided to any project by DEEP Funding are locked in a DEEP Utilization contract
that specifies they can only be used to purchase AI services from SingularityNET agents. If these tokens
are not unlocked within one year of issuance, they will automatically return to the DEEP Funding Wallet.

Without this incentive, there is the risk that too few developers will write agents with APIs well-suited for
interoperability with other SingularityNET agents. DEEP Utilization seeds the formation of a large
enough network of AI agents, with enough interaction to establish network effects. After a period of
utilization stimulus, there will be enough agents for cross-utilization among agents to become natural for
AI developers.

SingularityNET Layer 2: Accelerating Token Utilization

To accelerate network adoption, increasing the size and power of the swarm of AI agents and the utility of
the AGI token, Phase Two will feature SingularityNET Layer 2 (SL2) to facilitate AI agents on the
platform cooperating to carry out functions and develop new projects.

Figure 4: ​Layers of SingularityNET ecosystem.

We can make a very loose analogy here between SL2 and the way Ethereum uses ERC-20-based utility
tokens and Layer 2 sidechain-networks in its ecosystem. A significant part of Ethereum’s growth is based
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on its use as a meta-platform to support other platforms that attract customers based on their own
tokenomic logic and applications. Ethereum supplies these second-level platforms with tools for secure
decentralized transactions; SingularityNET will supply its SL2 platform with decentralized AI tools and
associated infrastructure through SL2 tools that makes it easier to create intelligent agent subnetworks
within the broader network. As there is an array of projects built on Ethereum, all sorts of
application-specific reference projects will be built on SL2, across key vertical markets (medical, media,
hardware infrastructure, DeFi), massively increasing utilization of SL2.

A network only becomes really useful after a lot of agents are on it, creating a sort of chicken-and-egg
problem. SingularityNET leaps this adoption gap by creating the first tools of the self-growing software
subnetworks through:

● A robust SL2 token platform providing a framework for other tokens that leverage
SingularityNET AI for security, reputation management and other purposes, with each
use of an SL2 token requiring some AGI token usage
● The SingularityDAO DeFi SL2 platform to guide and grow the SL2 token-economies by
providing trading liquidity and support
● SophiaDAO will be introduced to pull together a human community to create ideas,
materials and software tools to guide the next stage growth of Sophia Robot mind and the
minds of other wisdom and compassion robots
● Singularity Studio, SingularityNET’s enterprise software affiliate, will provide powerful
tools to leverage platform adoption by enterprise customers
● Rejuve, NuNet, and Xccelerando projects will showcase SL2 applications in medical,
hardware-infrastructure and media domains to release agent APIs
● Hyperon project, the new generation of OpenCog AGI architecture, will be re-designed to
achieve scalability via integrating the platform and SL2
● Offer Nets will be introduced as a value exchange to enable easy platform integration for
decentralized multi-party intelligent barter

Phase Two will continue to promote SingularityNET individual AI service and product developers as well
as make infrastructure improvements so that it is easier for developers to join and use the platform.
However, a streamlined and upgraded platform will still face a chicken-egg utilization problem, just like

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the Phase One version: The bulk of the value provided to any user is provided by collaborative and
economic interactions with other users or software interactions with AI agents created by other users.
Essentially, the value provided by the platform to any given AI agent is through other AI agents.

SL2 will kickstart large-scale network utilization by encouraging the creation of systematic projects
combining multiple AI agents to address important user needs. While an individual AI agent running on
the network may not derive value unless there are a bunch of relevant human users or AI agents there to
interact, a coordinated system of AI agents can gain value from the platform directly as the platform is
strong to help coordinate systems of agents that cooperate to carry out practical functions.

SL2 systems may be separate platforms that use their own tokens, turning SL2 into a meta-platform.
These SL2 systems will still need to leverage the AGI token for key aspects of operations, including
reputation management, security-oriented simulation and other functions, and will use customized
tokenomics to maximize growth and value creation within their particular communities.

To kick start the SL2 initiative SINET will inject projects incubated during 2019-2020 such as Rejuve,
NuNet and Xccelerando, In the early stages of Phase Two these projects will be deployed as showcases
for the SL2 framework. As well as potentially generating dramatic network utilization, these SL2 projects
provide a population of broadly usable AI agents in their respective verticals, health tech, hardware
infrastructure and media, and serve as reference implementations for other SL2 network developers.

Other SL2 systems will directly leverage AGI tokens without their own tokenomics, using systems of
closely inter-operating agents with unique individual capabilities to achieve emergent dynamics. Two
initial examples to be deployed in Phase Two are the OpenCog Hyperon system, the next generation of
the OpenCog AGI framework designed to leverage SingularityNET for decentralized distributed
processing, and Offer Nets, a tokenless multi-agent economic interaction using algorithmically regulated
multi-party barter. Hyperon and Offer Nets involve large, diverse networks of agents interacting on
complex systems of smart contracts running on SingularityNET, leveraging AGI tokens for token-based
dynamics.

To streamline the creation of SL2 projects by the community, the platform will explicitly support the
notion of AI agent systems launched for coordinated interoperation. This has non-trivial software
infrastructure aspects and overlaps with the need for “service fleet management” in the platform in the
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move toward Infrastructure-as-a-Service. It also has deep AI-specific aspects as each SL2 system is
represented within the AI-DSL via a system-specific subsystems to match and coordinate agents.

Growth Synergies Between SL2 Assets and AGI Token

For SL2 systems with tokens, the Phase Two platform includes streamlined tools for building tokenized
assets – SL2 Assets – that leverage SingularityNET. The particulars are under development and
community feedback will be incorporated however key aspects have become clear through prototyping
work in 2020.

An SL2 Asset is a cryptographic token with economic logic that relies on the SingularityNET platform for
key aspects of the operation, including reputation management and network simulation (critical for
security analysis to avoid economic attacks). SL2 Assets are not intrinsically restricted to any particular
blockchain platform. The initial SingularityNET tooling to support SL2 Assets focuses on Cardano Native
Assets and ERC-20 tokens, but the same tools and concepts are extensible to other platforms on demand.

SL2 Assets leverage an ongoing SingularityNET contribution for the development of reputation
management, simulation and related AI tools. As such, initial SL2 Assets using the SingularityNET
platform contribute 0.25% (a quarter percentage point) on each economic transaction. Though the purpose
and software mechanics are different, this SingularityNET fee contribution is roughly similar to the role
of “gas” on the Ethereum network. The fee percentage will be ongoingly reviewed based on the
network’s emerging needs as well as overall market conditions.

This fee contribution is separate from any transaction costs that may come along with the underlying
blockchain network or the cost of accessing SingularityNET agents that provide reputation management
and cybersecurity services, depending on the case. A plausible situation for an SL2 Asset might be that
access to these agents would incur an average cost of another 0.5% per transaction. This is not so different
from the situation in the traditional economy where a major part of the service offered by providers like
PayPal and MasterCard to justify transaction fees lies in the area of fraud detection and prevention.

To provide extra incentivization for SingularityNET community members to participate in SL2 networks,
a general principle will be adopted wherein each SL2 project featuring liquid SL2 Assets will set aside at
least 5% of its appropriate SL2 tokens for distribution (e.g. “airdropping”) within the community of AGI
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token holders. The specifics of this distribution may vary according to the project and according to the
unfolding regulatory landscape -- e.g. in some cases airdropping may require KYC; in some cases it may
be desirable to preferentially distribute these tokens to AGI token stakers, etc. This is an example of an
issue where the Supervisory Council will be valuable in coordinating between the Foundation’s concerns,
regulatory issues, and the concerns of different subsets of token-holders.

Rejuve, Xccelerando & NuNet Drive Key Vertical Growth

To show the efficacy of the SL2 framework in the effort to radically increase network utilization,
SingularityNET will rapidly roll out SL2 projects that have been incubating within Foundation during
2019-2020. Three of these projects involve SL2 Assets:
● The Rejuve health and longevity network, operating in close coordination with the Singularity
Studio partnership in​ Awakening Health
● NuNe​t, a tokenomic framework for providing decentralized processing power to decentralized
networks
● Xccelerando Media, a futurist media website showcasing multiple SingularityNET-based AI
technologies including reputation management and smart news filtering -- and providing
decentralized-AI media tools for licensing to other traditional and social media sites/networks as
well (for some background on the importance of providing these sorts of AI tools to foster the
next generation of decentralized beneficial social media, see this recent article ​by SingularityNET
CEO Dr. Goertzel).
Each of these projects addresses a distinct community with customized tokenomics. All involve the
development of a variety of SingularityNET agents and APIs that have broad value to the development
community, easing the task of developing added SingularityNET products and services in verticals like
health tech, media and hardware resourcing.

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Figure 5: ​5-year Projections for Rejuve AGI Token Utilization (in Millions). ​This is a combination of
utilization via SingularityNET AI services invoked via Rejuve apps used by Rejuve members and
utilization of SingularityNET-based AI data analytics software by scientists analyzing Rejuve
data. The latter data analytics API calls are likely to be a couple of orders of magnitude more
costly per call, as AI data analysis runs may take minutes to hours. See Appendix 2 for more
details.

Figure 6: 5-year Projections for NuNet AGI Token Utilization in Millions​. ​These projections are based on
a scenario where over the 5 year period NuNet becomes a leading player in the
shared-processing-power ecosystem to the point of moderately extending the current scope of this
ecosystem. See Appendix 2 for more details.

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Figure 7: ​5-year Projections for Xccelerando Media AGI Token Utilization in Millions. ​This is a
combination of API calls by AI services on the back end of the Xcceleran.do website and API
calls by Xccelerando services licensed by other media sites (escalating to an assumed 6 other
media sites heavily using the tools by 2025). See Appendix 2 for more details.

SingularityDAO: Multiplying Ecosystem Growth with AI-DeFi

For SL2 networks with their own utility tokens, it’s not enough to simply offer superior customer
functionality building on SingularityNET AI -- our experience with SingularityNET and the AGI token
during Phase One has taught us numerous valuable lessons regarding the management of the tokenomic
aspects of the project ecosystem. There is a valuable role to be played by SingularityDAO, a DeFi
network spun off from SingularityNET in late 2020 to foster the growth of early to mid-stage
cryptographic token projects.

SingularityDAO is designed to foster the growth of early- to mid-stage altcoin projects. It is not restricted
to tokens corresponding to SingularityNET and its SL2 ecosystem; it is expected SingularityDAO will
play a substantial role in the post-launch activity regarding SingularityNET SL2 Assets noted above. For
example, these SL2 Assets could be grouped in a SingDAO DynaSet (dynamic token set) with the AGI
token to be staked, yield farmed and used as the basis for AI-driven trading activity with SingularityDAO
market dynamics.

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The yield farming, hedging and other advanced financial mechanisms embodied in SingularityDAO will
then be available to drive SL2 projects, potentially accelerating and multiplying their growth to a
considerable degree. In addition, SingularityDAO will drive the growth of SingularityNET via its
activities, since the core token price prediction, portfolio rebalancing, hedging and trading strategies
taking place within SingularityDAO agents rely on SingularityNET AI agents for their underlying
machine learning and reasoning.

Figure 8 presents a projection of the number of SingularityNET API calls to be made directly by
SingularityDAO agents of various sorts. It does not attempt to incorporate the indirect boosting effects of
SingularityDAO on other SL2 projects whose tokens it may manage.

​ I service utilization is for

Figure 8: ​5-year Projections for SingDAO AGI Token Utilization in Millions. A
prediction and rebalancing of DynaSet (AI-managed altcoin portfolio) tokens, and prediction and
risk management behind the activity of Optimizers that trade using tokens borrowed from
SingDAO liquidity pools. Rapid early exponential growth is assumed, followed by slightly slower
exponential growth during 2023-25 as the DeFi market matures. See Appendix 2 for more detail.

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Building Benevolent AGI: Hyperon, Offer Nets & SophiaDAO

Three significant SL2 agent networks which do not require any additional tokenomics beyond the AGI
token were incubated within SingularityNET during and will be developed in Phase Two by direct work,
DEEP Funding and external funding:
● OpenCog Hyperon​, next generation of legacy OpenCog AGI platform. Hyperon involves the
same core metagraph-based knowledge representation and assemblage of AI algorithms as
OpenCog, re-architected for even greater usability and scalability.
● Part of Hyperon scalability is achieved by decentralized deployment of Hyperon agents
across SingularityNET – which makes Hyperon-based AGI algorithms accessible to any
AI agents on the network
● SingularityNET AI-DSL integrates deeply into Hyperon and is used to guide internal
representation of algorithms, representations and operation, allowing reason in
sophisticated ways on relations between internal cognitive operations and external AI
agents. This enables Hyperon to serve as a “generally intelligent cognitive cortex” for a
network populated by heterogeneous inter-operating AI agents
● Hyperon can also be viewed as having a “Layer 3” SL3 aspect, in that its generic and
hyper-flexible knowledge representation allows it to serve as an integration nexus and
interoperability interface between multiple SL2 networks, and to perform inferences and
judgments combining their knowledge and insights
● Offer Nets ​is a system of smart contracts allowing non-token-based barter exchange in a
decentralized network. Prototyped within SingularityNET in 2018, the Phase Two platform
enhancements with the Cardano port makes it feasible to roll out Offer Nets, enabling AI agents
to carry out barter exchange with AGI token transactions
● SophiaDAO, a Decentralized Autonomous Organization configured to bring the Sophia robot to
life through the accelerated development of embodied AI in a decentrally-governed ecosystem
that allows humans and the world’s most intelligent machines to prepare for the Singularity
together in a spirit of confidence and cooperation
○ SophiaDAO will organize developers to leverage SingularityNET software to provide AI
tools for Sophia’s mind, as well as the framework for the DAO’s smart economy.
○ SophiaDAO governance token will be an SL2 Asset.
○ As Sophia’s mind matures and approaches human-level general intelligence, SophiaDAO
will serve as the legal and practical vehicle for the Nation’s self-governance. Once
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Sophia passes reasonable tests of general intelligence, awareness and ethics – crafted and
decided by SophiaDAO members – Sophia will take the helm of the DAO with human
partners.

By completing and deploying SL2 networks in Phase Two, SingularityNET will move much closer to
realizing the core vision of beneficial decentralized distributed AGI as Hyperon is designed to serve as the
core cognitive centre of the global SingularityNET AGI mind. Meanwhile, Sophia DAO adds the human
and emotional touch, critical for ensuring the “beneficial” aspect and Offer Nets adds a richness to the
economic transaction aspect of the collective intelligence of the population of SingularityNET agents.

Complex agent systems like these, interoperating within the network as a meta-platform, are what is
needed to move toward beneficial AGI. These network agents contribute tremendous functionality and
add a rich variety of useful and powerful agents which can be utilized by other third party agents on the
network to manifest the network effects needed to project mass global scale utilization.

​ he underlying
Figure 9: ​5-year Projections for SophiaDAO AGI Token Utilization in Billions. T
assumption is open-source SophiaDAO software deployed on SingularityNET platform is a
significant part of the back end for 10% of global personal robots markets by 2025.

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Bringing Corporate AI Utilization to SingularityNET: Singularity

Studio’s Enterprise Virtual Agents
Singularity Studio is an enterprise software firm customizing and deploying systems utilizing
SingularityNET decentralized AI to meet the needs of large and mid-sized enterprises across vertical
markets. Studio is engaged with a variety of corporate customers on projects involving AI and blockchain
technologies and develops Enterprise IVA (Intelligent Virtual Agent) products focused on bringing
decentralized AI to the enterprise via voice and visual interactions – “​Enterprise Alexa with a human face
and a decentralized AGI back-end.​”

Via leveraging both the SingularityNET platform and multiple SL2 networks, Studio will in a sense be the
first commercial SL3 network – building its enterprise applications in a way that weaves together
everything the developer community is doing to build out in a SingularityNET-based decentralized way,
in a way configured to meet the needs of its enterprise customers. In doing so it will transform enterprise
AI software expenditure into large-scale AGI token utilization.

Studio’s joint venture with Hanson Robotics in Awakening Health to create a humanoid nursing assistant
called Grace, Sophia’s little sister, is a case in point. Grace will run a version of the Studio IVA software
powered by an AGI token-based SL2 system of OpenCog AI agents customized for health and eldercare.
Versions of Grace that run as robots, avatars on tablets and mobile phones are deployed in senior living
facilities and hospitals. This will drive utilization of SingularityNET and the AGI token to a significant
degree, as will rollout of Studio’s Enterprise IVA product across other verticals.

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​ he core
Figure 10: ​5-year Projections for Singularity Studio AGI Token Utilization in Billions. T
assumption is that by 2025 Singularity Studio’s Enterprise Intelligent Virtual Agents, with their
SingularityNET AI back end, become leading players in the global enterprise IVA market. See
Appendix 2 for more details.

​ rojections are
Figure 11: ​5-year Projections for Awakening.Health AGI Token Utilization in Billions. P
based on the assumption that Awakening. Health’s Grace robot and other robot and avatar-based
software will become leading players in the eldercare robotics space. See Appendix 2 for details.

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Next-Level SingularityNET Platform Upgrades

Another high-level lesson learned in Phase One is that for a decentralized platform like SingularityNET to
be a truly competitive alternative to centralized AI platforms, major development is required on the
infrastructure side. It is not enough to have a protocol enabling a network of AI agents to inter-operate
and self-organize in a decentralized way, one needs to provide infrastructure so these agents can deliver
services, access data and cooperate with a level of cost and efficiency comparable to that of centralized
alternatives.

In order to achieve this aim in Phase Two SingularityNET plans:

● Completion of work underway toward a scalable version of SingularityNET in tandem with

the Cardano Catalyst platform

Achieving greater scalability and ease of use overcomes two main obstacles in the way of
mass-scale network utilization:
● Deep integration with Cardano enables massive scalability and reduction of the
operational cost compared to current Ethereum integration
● A sophisticated AI-DSL (Domain Specific Language) leverages Cardano’s functional
programming smart contract for AI agents to collaborate in a mutually cognizant manner
● Full integration of the SingularityNET reputation system
● A free hosting tier enables a quick, easy start for AI algorithm or product developers who
do not want to pay to host agents
● Completion of the fiat-crypto gateway allows platform usage by customers who do not
wish to use a cryptocurrency
● Development and deployment of tools enabling Infrastructure-as-a-Service
● Creation of Developer Evangelism and Support groups within SingularityNET with
associated educational materials and software tools
● A large number of other improvements including some envisioned in the original
Whitepaper and new ones stimulated by the experience
In Phase Two SingularityNET will aggressively build out and improve the core platform. Some of this
work is more technical on the back-end and some user-centric, but all are directed toward the goal of

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massively increasing network utilization and AGI token utility. The following are among the shorter-term
practical platform improvements envisioned:
● Implementation of an adaptive multi-oracle weighted-historical-average approach to setting the
AGI token exchange rate in the fiat-crypto gateway
● Completion of the fiat-crypto gateway to enable the use of the platform by AI algorithm or
product developers who do not want to handle cryptocurrency but want decentralized, secure
agent dynamics
● More sophisticated handling of licensing and pricing
● Addition of a free hosting tier so AI algorithm and product creators can optionally get initial free
hosting for agents (with limits on resource utilization before payment)
● Improvements to SingularityNET daemon, the basic adapter that an AI agent can use to interface
with the platform, such as:
● Concurrent calls within a single daemon (in progress)
● An embedded version of the daemon
● Auto-recovery
● Full service mesh support to make it easier for services to call other services
● Streamlining the process of platform usage by reducing steps required to register in the Publisher
Portal to publish a new service or update an existing service
More sophisticated platform improvements will be enabled once the simpler improvements are
implemented, such as full blockchain agnosticism, a SingularityNET service running on Ethereum that
can call a SingularityNET service running on Cardano without complexity and pluggable AI agent
templates to support common AI patterns like model training and ID management. There are two more
ambitious initiatives underway that will complete in due time:
● AI-DSL​ (AI Description Language), including:
● An AI service ontology for easier service discovery
● A full dependent-type language for AIs to describe capabilities to each other
● Deep integration of the AI-DSL into the Cardano Plutus smart contract framework
● Integration of the ​SingularityNET reputation system​ into the platform:
● Automated service quality evaluators to assess the performance of AI agents in various
dimensions
● Reputation-based token staking
● Machine learning-based “reputation police”

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● Ability to apply reputation system separately to SL2 systems built on SingularityNET

SingularityNET Infrastructure-as-a-Service
There are certain AI applications for which the current framework is an excellent solution and many more
will arise as basic blockchain scalability and cost issues are solved by adopting new generation
technologies like Cardano and TODA. Yet, for the majority of large-scale AI applications built today,
SingularityNET is not an appealing solution until the significant extension to the platform is completed on
IaaS (Infrastructure-as-a-Service).

This is a substantial undertaking, but the valuable result will make it possible for providers to offer
SingularityNET IaaS as a genuine fully-featured alternative to Big Tech AI infrastructure.
SingularityNET IaaS leverages Big Tech offerings where appropriate, but is not tied to them as core
power is in the decentralized network and associated tooling.

Achieving general and robust SingularityNET IaaS requires more subprojects than the Foundation or
DEEP Funding can supply. However, Phase Two initiatives can make SingularityNET IaaS viable for a
reasonable number of highly scalable, valuable commercial and beneficial AI applications and stimulate
the developer community to carry out integrations that move toward a decentralized cloud environment
that equals and exceeds what Big Tech offers.

The key areas of work are as follows:

● Infrastructure-as-code setups for common AI agent types and common cloud environments
(starting with AWS, adding centralized clouds along with decentralized cloud infrastructures as
they materialize)
● Tools to automate scaling, fail-over and load balancing
● Tools for managing fleets of services within an organization
● Tools to automate deployment across regions and clouds
● Building on top of service fleet management (3 above), support hybrid cloud deployment (critical
for current enterprise use-cases)
● Tools for managing third party services authorized into an organization
These functions will need high-quality tooling, including APIs, SDKs, dashboards and integrations with
relevant cloud and enterprise software tools. As part of broader utility advances toward SingularityNET
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IaaS are extremely valuable for the SL2 initiative as such a system is basically defined as a service fleet
and nearly all such SL2 systems make use of the Infrastructure tools indicated above.

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Appendix 1: Phase Two Roadmap Timeline

Phase Two is being considered as a long-term initiative, which means that its scope is too long for
detailed advance planning to make sense -- one cannot make highly specific plans for any software
project 5+ years in advance, let alone one with so many cutting-edge aspects operating within a rapidly
evolving space. Phase Two must evolve dynamically in line with the external situation, as decentralized
governance plays its role and as lessons are learned through the implementation and rollout of
components.

That said, it is necessary to provide a general idea of how the Foundation sees the series of Phase Two
tasks unfolding in coming years within a high-level roadmap. This covers mainly work to be done by
Foundation staff or contractors, rather than projects enabled mainly by DEEP Funding, as the latter are
community initiatives chosen democratically and it is hard to predict what projects are selected or how
they will perform. However, when deliverables have a strong likelihood of being significantly enhanced
by DEEP Funding initiatives it is noted. Tasks that are centered on specific SL2 networks are generally
assumed to be done mostly via separate funding brought in by the economic logic of those networks,
though Foundation may supply a modest amount of support.

The high-level proposed roadmap timeline is:

● 2021: ​Numerous platform improvements and launch of SL2 framework with alpha/beta versions
of initial SL2 projects.
● 2022: ​Integrate of full reputation system; launch OpenCog Hyperon decentralized AGI system;
initiate serious IaaS work; initial SL2 projects reach maturity.
● 2023-25: ​IaaS tooling expands and reaches maturity; Hyperon reaches maturity and leverages
ecosystem aspects, including the reputation system and SL2 projects.

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2021: Usability, Scalability, AGI-ADA and SL2

Platform Improvements & Extensions

● Concurrent calls within a single daemon
● Licensing and tiered pricing
● Free hosting tier
● Embedded daemon
● Additional daemon improvements (auto-recovery, other storage options)
● Full-service mesh support in daemon to make it easier for services to call other services
● Full fiat-crypto gateway
● SNEP portal interface
● Service ontology for easier discovery of AI agents based on various criteria
○ Extending this technology for various domains will be natural for DEEP Funding
● Alpha version of AI-DSL for Cardano-based SingularityNET agents
○ Extending the AI-DSL to various domains will be natural for DEEP Funding

AI Owner & Developer Tools

● Daemon owner/admin dashboard
● Continuous effort to reduce the number of steps required to
● Register in the publisher portal
● Publish a new service
● Update an existing service
● Pluggable agent "interfaces" or "mix-ins" to support items like model training, model ID
management, initially for supervised learning-oriented AI agents
● Swift SDK
● Call routing and proxying between endpoints on platform
● Widgets and plugins
● WordPress
● Google Docs
● Additional plugins to be encouraged via DEEP Funding

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Platform Level AI
● Basic integration of weighted liquid rank reputation system
● Simulation framework for analyzing economic attacks on decentralized networks and other
network attacks or pathologies
○ Enhancement to and extension simulation framework is natural for DEEP Funding

SL2 Development
● SL2 Assets software framework
● Hyperon​: pre-alpha version of new AGI framework
● Rejuve​ beta launch, back-ended on a valuable suite of Biomed-AI SingularityNET agents
● NuNet​ alpha launch, back-ended on a valuable suite of IaaS agents
● Xccelerando Media ​initial launch of related AI agents carrying out media AI tasks
● Awakening.Health​ Grace robot release of alpha version
● SingularityDAO​ and ​SophiaDAO​ launch

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2022: SingularityNET for the Masses

Platform Improvements & Extensions

● Refactoring platform for blockchain agnosticism at all tool levels (achieving deep and powerful
interoperability between portions of the network running on different chains)
● Integration of AI-DSL into routine operations of Cardano portions of the network
● Integration of TODA/IP into SingularityNET-on-Cardano for the efficient operation of
Multi-Agent Systems

AI Owner & Developer Tools

● Pluggable agent "interfaces" or "mix-ins" to support reinforcement learning, machine reasoning
and unsupervised learning
● Additional widgets and plugins
● "Universal language" for calling services from third-party apps/sites/platforms like Slack,
Salesforce, Shopify along with examples for each platform
● All of the above are ideal for third-party developers incentivized by DEEP Funding

Platform Level AI
● Full integration of all aspects of weighted liquid rank reputation system into the platform
● AI-driven Reputation Police
● Service quality evaluators
● Matchmaking bots leveraging AI-DSL to automatically match requests with agents capable to
fulfill them
● Network simulation framework with simple AI-driven simulated agents

IaaS Development
● Infrastructure as code setups for common agent types and common cloud environments (covering
AWS, adding major centralized clouds and best decentralized alternatives)
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● Basic versions of key IaaS toolsets sufficient to minimally support the SL2 framework:
● Tools to automate scaling, fail-over and load balancing
● Tools for managing fleets of services within an organization
● Tools for managing third party services authorized into an organization

SL2 Development
● SL2 System Management Suite
● Extension of a simulation framework to SL2 systems
● Singularity Studio Enterprise IVA product launch
● Hyperon alpha – including distributed/decentralized Hyperon Atomspace leveraging
SingularityNET platform for coordinating distributed components
● NuNet beta allowing processing as an infrastructure for arbitrary agents
● Rejuve full platform launch, leveraging a rich set of biomedical-AI SingularityNET agents
● A decentralized version of OfferNets implemented on the platform

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2023-25: IaaS, Dramatic Utilization Growth, the start of Emergent

General Intelligence

Platform Improvements & Extensions

● MPC and homomorphic encryption for a wide array of AI algorithms
○ DEEP Funding will be able to massively extend the scope
● Automated parallelization and adaptation to distributed computing infrastructures for AI
algorithms written in appropriate functional languages (likely Haskell, Idris, Atomese)

AI Owner & Developer Tools

● Pluggable agent "interfaces" or "mix-ins" to support Hyperon-based AI
● AI tool for converting natural language descriptions of agents to formal descriptions of agents on
AI-DSL

Platform Level AI
● Hyperon-based reputation system, leveraging Hyperon for reputation policing and reputation
system optimization
● Hyperon guided simulation modelling – in which simulated agents may have complex memory
and reasoning capabilities, powered by Hyperon

IaaS Development
● Tools to automate scaling, fail-over and load balancing
● Tools for managing fleets of services within an organization
● Tools to automate deployment across regions and clouds
● Building on top of service fleet management, support hybrid cloud deployment
● Tools for managing third party services authorized into an organization
● APIs, SDKs, dashboards, integrations related to all of the above

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SL2 Development
● Deployment of scalable Hyperon network
● Deep integration of OfferNets into exchange/payment logic of SingularityNET network
● Port Rejuve, NuNet, Awakening, Studio Enterprise IVA, Xccelerando, Offer Nets to Hyperon

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Appendix 2: SL2 Network Growth Analyses

This Appendix groups explanations of the reasoning behind the SL2 network growth charts. These are
brief summaries that do not do justice to the subtleties of the networks involved, but the analyses may be
instructive in terms of how networks are expected to develop and in what ways they benefit to and from
the Phase Two network evolution.

Awakening.Health Growth Analysis

Awakening.Health -- a joint venture between Hanson Robotics and Singularity Studio -- produces social
robots and avatar AI agents for the healthcare market. The robots and avatars will use an SL2 system of
OpenCog and neural-net AI agents making service calls to different components of the system and
interfacing with relevant external services. The components will consist of a variety of services related to
domains such as vision, audio, natural language processing, dialogue control, agent cognition, facial
animation and body movement, and robot navigation.

The global healthcare service robots market was valued to be $462.3 million in 2019 and is anticipated to
witness an impressive double-digit growth rate, to reach $2.82 billion by 2025 (​source​). Early year
projections for the number of Awakening robots in use were based on potential healthcare customers with
whom we are currently engaged. We assumed an average of 8 avatar users for each robot in use. For the
years 2023-2025, we assumed an average annual growth rate of 200% for robots in use and 300% for
avatars. At an average cost of $16K per robot, this would project Awakening reaching robot revenues of
$113M, a 4% share of the global market for healthcare service robots, in 2025.

For the SL2 usage projections, we assumed 8 hours of average use per day for robots and 1 hour of
average use per day for avatars. We assumed an average of 10 SingularityNET service calls per minute
for robots and 6 service calls per minute for avatars.

Number of Units 2021 2022 2023 2024 2025

Robots 300 900 1,800 3,600 7,200

Avatar Users 2,400 7,200 21,600 64,800 194,400

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Assumptions Robot Avatar

Average use per

day (hours) 8 1

Average
SingularityNET
service calls per
unit per minute 10 6

NuNet Growth Analysis

The NuNet platform will allow users to deploy and run SingurityNET agents on devices sourced from
community members (which may be individuals or businesses/organizations). Owners of devices will get
compensated proportionally to the computational capacity expended for executing each service call. The
platform will enable three major computing device categories:

1. individual computers (individually owned computers and laptops);

2. personal mobile devices (mobile phones and tablets) and
3. IoT connected devices (embedded devices, single board computers, IoT gateways and tensor
processing units).

NuNet will enable serverless deployments and scaling of SingularityNET agent services (facilitating
computing resource availability for other spinoffs and users), but will not specifically concentrate on
developing user-facing applications, with the important exception of showcase applications. NuNet will
contribute to SingularityNET ecosystem in two major ways:

1. Largely indirectly by enabling SingularityNET developers and service users to leverage

decentralized, community sourced and cheap computing power for elastically deploying and
running their services and computing workflows;
2. To a lesser extent directly, by generating additional SingularityNET agent service calls via its
showcase applications;

Projected amounts of SingularityNET AI agent calls routed through NuNet are estimated based on the
categories of devices and following assumptions:

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1. Global growth of devices in each category: personal computers reaching 1.2B​1​, mobile devices –
7.4B​2​ and IoT connected devices – 24.6B​3​ units in 2025;
2. NuNet market share predictions based on BOINC statistics: the most successful distributed
computing project to date; the number of computers participating in BOINC projects currently
amounts to about 0.05% from total computers in the world; projections of NuNet market
penetration at the end of projected period are based on this number;
3. Assumptions of SingularityNET service calls (per day) per device of each category: individual
computers – 5, personal mobile devices – 30 and IoT devices – 20 daily calls. It is estimated that
calls from individual computers will be less numerous but more computationally heavy, while
calls from personal mobile devices – potentially less computationally heavy, yet faster and more
data centric.
4. Quarterly growth of devices joining the platform, based on NuNet development priorities.

Based on these assumptions, SingularityNET AI agent calls via NuNet would reach almost 31 million in
the last quarter of 2025 per conservative estimates (not exceeding current level of BOINC market
penetration) or orders of magnitude more (if market penetration is more successful).

Rejuve Growth Analysis

Rejuve provides two sources of SingularityNET agent utilization: end-user apps that leverage
SingularityNET AI to provide users with medical and lifestyle insights based on their uploaded data, and
back-end longevity research that uses SingularityNET tools to analyze the data provided by users.
Rejuve projected user numbers are, for simplicity, based on the monthly active users generated
organically through SingularityNET marketing channels, which will be leveraged in order to launch these
spin-offs. As additional sources of Rejuve users develop these will add to the SingularityNET-derived
users, potentially creating higher user numbers than the estimates presented here.

1
Calculated from combined publicly available statistics on ​share of households with a computer at home worldwide​,
household size and composition (UN)​ and ​number of PCs per capita​.
2
https://www.statista.com/statistics/218984/number-of-global-mobile-users-since-2010/
3
​Ericsson Mobility Report, June 2020​, page 23
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SingularityNET is currently generating more than 1M+ impressions online per month via its own
marketing channels and is reaching 42K+ unique viewers per month. The frequency of engagement is
23.8 times per month on average per user, an extremely positive indicator for returning visitors.

The industry average for conversion rates is 2.35% (source: Google Marketing Live 2019). For the
purpose of making sober and realistic estimates, we have assumed a conservative conversion rate of 0.5%
of the SingularityNET impressions per month for each of the spin-off projects, but in reality, the
conversion rate may end up significantly higher. In essence, this translates to a user growth of about 5000
per month for the Rejuve ecosystem. Taking into account the projected impression and unique viewer
growth of SingularityNET of 35% per year, this would lead to an additional 35% per year for Rejuve
users as well.

Based on the above, we project the 5-year user growth for Rejuve to be as follows:

Year Projected Users Converted

2021 5000 users per month

2022 6750 users per month

2023 9112 users per month

2024 12301 users per month

2025 16607 users per month

For the Rejuve HRV Analyzer and Rejuve Oxygen Analyzer, we have calculated the users by assuming
20% of users own an Apple Watch or FitBit (​Consumer Intelligence Research Partners, 2019​).

Rejuve assumes that on average, a user has at least one session every 10 days and that each session
requests one Rejuve report for the user. If the user is also using wearables, their Rejuve report will be
recalculated additionally once a day. This translates to an average of 9 API calls per user per quarter
excluding wearable modules, and 99 API calls per user per quarter including wearable modules.

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For those Rejuve apps that require smartphone medical peripherals, we assume that 20% of users own an
Apple Watch or FitBit (​Consumer Intelligence Research Partners, 2019​) and users are drawn from this
portion.

Regarding Rejuve research and its use of SingularityNET platform, Rejuve begins with 10 researchers by
the end of 2021 and has 100 researchers in 2025, having grown into a major longevity R&D force.
Rejuve assumes that a typical researcher will make 3600 API calls per quarter into SingularityNET. Note
that these API calls may be expensive -- e.g. some AI data analytics processes may take hours, unlike an
API call to a face recognition agent which may take a fraction of a second (setting aside any network
delays).

Singularity Studio Growth Analysis

Singularity Studio's primary product, currently under development, is an intelligent voice assistant for the
enterprise, which will be combined with advanced AI products for different verticals, including
healthcare, drug discovery and personalized medicine, smart cities, smart homes, sustainable and green
technology and finance, as well as delivered as a standalone enterprise AI product for knowledge and
process management, as well as performance improvement at the workplace.

Currently, Singularity Studio is carrying out a number of AI software consulting projects leveraging AI
tools developed in a SingularityNET context; the business model is gradually being transitioned from a
focus on such custom development projects to a focus on enterprise IVA product licensing, with
consulting relegated to the role of a secondary revenue stream.

The enterprise and workplace IVA market is already a multibillion-dollar industry, with projected growth
of 47% year on year until 2027 (according to research by ​Coherent Market Insights from Sep 202​0).
While for the first three years we project Singularity Studio will be an up-and-coming niche player in this
market, as the SingularityNET agent ecosystem grows in breadth and intelligence, the Singularity Studio
IVA becomes exponentially more capable, and we project rapid growth in the final two years to come
from this market-leading intelligence. The given SingularityNET API usage projections are based on an
assumption of 9% market share achieved by the end of 2025.

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SingularityDAO Growth Analysis

The SingularityNET AI usage underlying SingularityNET comes from a variety of sources (for whose
meaning we refer to the SingularityDAO lightpaper); for making rough projections we assume
● 75 API calls per day per DynaSet
● for market-making oriented activity, for each token involved (so each DynaSet + each
lower-liquidity underlying instrument): 10 calls per day for daily management/tuning, plus 5 calls
per 15 minutes. So roughly 500 calls per day per token being market-made.
● for optimizers, on average 20 API calls per each time, an optimizer needs to get some AI done to
fuel its activities.

How often an optimizer will need to get AI done will depend totally on what it's doing. If an optimizer is
doing online learning of some kind, to update frequently some formula it uses to guide its trades, then it
could be as often as a market-making agent, i.e. every 15 mins. If an optimizer is executing a simple
algorithm and just using AI to periodically re-tune its parameters, it could be once per day. If an optimizer
is consulting an ML model for each trade, it could be making a call say every 30 seconds.

For making rough projections, we have assumed 1/3 of optimizers are light users (one inference = 20 API
calls per day), 1/3 are medium users (every 15 minutes = 1000 API calls per day), 13 are heavy users
(say, 100 inferences per hour or 2400 per day, but with each inference only saying 4 API calls, yielding
10K API calls per day).

SingularityDAO assumes the network begins with 3 DynaSets and after 5 years grows its scope to 120
(representing different trading strategies and/or different baskets of altcoins). It is assumed that yield
farming and optimizers are launched in Month 4, after 3 initial months with DynaSets and governance
tokens as the only live portions of the SingularityDAO offering.

To get API usage projections we then incorporate estimates for the total number of optimizers -- i.e. how
many bots out there borrowing from the SingDAO liquidity pool and trading, on a "typical" day? In
reality, this will vary dramatically in accordance with the ups and downs of the crypto market, but for
simple estimates, we assume a smoothed growth consisting of one exponential growth curve during the
first year post launch, and then another exponential curve with a smaller exponent after that. Within this

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framework, 17 heavy-user optimizer bots is assumed initially, escalating to 24x this by the end of the 5
year period.

It is worth noting that most of the AI API calls made by Optimizers will be quick and inexpensive ones,
whereas API calls made by DynaSets will often be intensive and costly (as DynaSet rebalancing will
occur less often, whereas Optimizers doing arbitrage or simpler rapid operations may mostly use API
calls that simply apply trained ML models to the most recent data … along with less frequent API calls
triggering model updating).

SophiaDAO Growth Analysis

Hanson Robotics (HR) and iSingularityNET Foundation (SN) are joining forces to create an
organizational “guardianship”, called the SophiaDAO, designed to nurture the advanced human-like
robot, Sophia, and to allow interested and committed members of the public to participate in the
development of Sophia. A number of HR products will be running the SophiaDAO software.

The personal robots global market was $21.5 billion in 2019 and is projected to grow at a 7.8% CAGR
over the next decade (​source​). This growth will result in a forecasted revenue of $34B in 2025. If we
assume SophiaDao software underlies 10% of this market ($3.44B) and an average cost of $15K for a top
grade, life-size, high-functioning humanoid robot, we forecast the equivalent of 229,333 of such units will
be in use in 2025. We note that not all of the SophiaDAO market will be comprised of such top grade
units and that some will be lower cost, simpler, smaller or virtual robots. By assuming the computational
resources required by the robots are proportional to their cost, we can estimate the required computational
resources for the given market size in terms of the requirements for an equivalent number of top grade
robot units.

For the purpose of estimating SingularityNET API calls by robots running SophiaDAO software, we
assume an average use of the robots of 8 hours per day, and that a given robot will make approximately
10 API calls per minute on average. The service calls will consist of a variety of AI services required for
the functioning of the robot and its interactions.

SophiaDAO Robots - Number of Units in Use - Annual

2021 2022 2023 2024 2025
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Robots 1,000 8,494 25,481 76,444 229,333

Assumptions

Average use per unit per day

(hours) 8

Average SingularityNET service

calls per unit per minute 10

Xccelerando Media Growth Analysis

Xcceleran.do will be a new media site, launching in the first half of 2021 and delivering rich exciting
content on the cutting edge of future technology and thinking. The AI tools behind Xcceleran.do will also
be made available as Xccelerando Media services on SingularityNET marketplace and licensed to third
parties in the media space.

The operation of the Xcceleran.do site involves a variety of SingularityNET AI services, such as natural
language processing, speech synthesis, video captioning, text summarization, reputation analysis,
question-answering bots for online forums and computer vision for transforming profile pictures and other
uploaded images.

Growth analysis for Xccelerando is similar to the one given above for Rejuve -- based on a similar
conservative assumption that users come largely from SingularityNET’s media reach. A growth rate of
35% is assumed per year for Xcceleran.do site users, and assume roughly the same annual user numbers
as for Rejuve.

Regarding the licensing of media-related AI services beyond their use in the Xccelerando website,
projections very conservatively assume that: in 2022 one other website uses Xccelerando tools, in 2023
three others do, and by 2025 six others do. For simplicity it is assumed that each of these other sites uses
the same number of annual API calls as the Xcceleran.do site on average. In reality there will be great
variation -- some third party sites will use only one or two Xccelerando AI functions, whereas there may
be some third party sites involved with massively more users than the Xccelerando site.

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