In a recent statement, Ocean Protocol Foundation (OPF) has addressed allegations made by Sheikh, Goertzel, and Burke regarding the management of the $OCEAN token. The foundation aims to clarify the events surrounding the minting and conversion of the Ocean community’s token supply.

Prior to March 2021, OPF held the minting rights to the $OCEAN token contract, with five signers assigned by the foundation. The Ocean community allocation, which was to comprise 51% of the eventual $OCEAN supply, had not been minted but was outlined in the Ocean whitepaper. In June 2022, the rights to mint these tokens were irrevocably transferred to oceanDAO, a decentralized autonomous organization, with seven community members acting as trustees.

By May 2023, oceanDAO minted the 51% token supply, relinquishing control over the $OCEAN token contract. The tokens were held in a Gnosis Safe vault, requiring four of seven signers to activate their keys for any release. The signers acted in the interest of the Ocean community, not OPF or its founders.

OceanDAO’s Strategic Decisions Amid Market Challenges

During discussions in 2024, Fetch.ai proposed converting the entire 51% token supply to $FET. OPF resisted, emphasizing that the tokens were not under its control. Despite the formation of the ASI Alliance and Fetch.ai minting 611 million $FET tokens for a potential swap, oceanDAO did not convert its holdings immediately.

By April 2025, with the $FET price declining, oceanDAO decided to diversify its holdings to protect the community’s assets. Ocean Expeditions, a Cayman trust, was established, and signing rights were transferred to it. The trust initiated a conversion of $OCEAN to $FET, using tokens earmarked by Fetch.ai for this purpose.

Rebuttal of Theft Allegations

Sheikh’s claims of theft were refuted by Ocean Expeditions, which stated that the conversion was a rightful allocation. The trust emphasized that no assets were taken by OPF or its founders. Ocean Expeditions maintains that all actions were in the community’s best interest, preserving the value of its assets.

Ocean Protocol Foundation has demanded retractions and apologies from Fetch.ai, Sheikh, and other ASI Alliance representatives for their statements. The foundation asserts that the allegations are unfounded and misrepresent the situation.

For more details, the full statement can be read here.

Why This Matters: Impact, Industry Trends & Expert Insights

Ocean Protocol Foundation has addressed allegations regarding the management of its $OCEAN token, emphasizing the transition of minting rights to oceanDAO and subsequent strategic decisions to protect community assets.

Recent industry reports indicate that DAOs are increasingly leveraging dynamic and algorithmic approaches to token supply management. This aligns with Ocean Protocol’s strategic token conversion and diversification decisions, which reflect broader trends in DAO governance and financial sustainability.

As per insights from AInvest, Ocean Protocol’s recent token strategies highlight a strategic realignment towards independent governance and data-economy infrastructure. This supports the foundation’s efforts to maintain its project identity and enhance long-term value amidst evolving market conditions.

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