Controversy Over Permanent Exclusive License Requirements for AI Training Data

While Poseidon AI, which positions itself as a decentralized AI data infrastructure, collects user voice data by offering points and potential future airdrops, serious rights waiver clauses discovered in its Terms of Service require participants' careful attention.

Project Overview and Attractive Incentives

Poseidon AI gained attention by securing $15 million in seed funding led by a16z Crypto in July 2024. This project, incubated by Story Protocol, offers points to users who record and submit their voices in 16 languages, suggesting the possibility of future PSDN token airdrops.

Currently, users can earn points through 5-20 daily voice submissions, receiving 10 points per submission and an additional 50-250 points upon passing AI review. With only about 24,000 participants so far, the project emphasizes this as an 'early participation opportunity' to attract community interest.

Hidden Toxic Clauses in the Terms

However, a thorough review of the Terms of Service revised on August 18, 2025, reveals serious clauses that participants must be aware of.

1. Permanent Exclusive License for AI Model Training (Section 1.1(b))

The most problematic clause grants Poseidon an exclusive license for "all use or modification related to the development, training, testing, improvement, and deployment of AI and machine learning models" for all content submitted by users.

This means:

• Users cannot provide their voice data to other AI projects

• The license is perpetual and irrevocable

• Royalty-free and applies worldwide

• Fully sub-licensable through multiple tiers

2. Absence of Legal Status for Points and Tokens (Section 1.1(d), (e))

The terms explicitly state:

• Points "do not constitute any currency or property"

• Points are non-refundable and non-transferable

• The company can forfeit or adjust points "at its sole discretion"

• "No promises or guarantees" regarding token distribution

3. Broad Disclaimers (Section 7)

• Service provided "AS IS"

• Company's maximum liability limited to $100

• Users bear all risks including cryptocurrency value decline, hacking, regulatory intervention

4. Mandatory Arbitration Clause (Section 8)

• All disputes resolved only through individual arbitration (no class actions)

• Conducted in San Francisco under JAMS rules

• Includes class action waiver provision

Particularly Concerning Areas

Permanent Loss of Exclusive Rights to Voice Data

The most serious issue is the exclusive license clause for AI training purposes. This means users permanently lose practical control over their voice data. Even if personal voice data becomes commercially valuable in the future, users cannot utilize it elsewhere.

Risks Related to Story Protocol Integration

While the project claims to register all data on Story Protocol's blockchain, the terms state that "the protocol is not part of the service and its use is entirely at the user's risk."

Comparison with Other DePIN Projects

Unlike Grass Network and other DePIN projects, Poseidon's terms contain particularly unfavorable conditions for users:

• Most projects only require non-exclusive licenses

• Some projects recognize partial data deletion rights

• Some explicitly promise point-to-token conversion

Expert Opinions and Recommendations

Blockchain legal experts point out that these terms create "a structure that essentially makes data providers unpaid workers." The permanent exclusive license clause, in particular, prevents users from asserting their rights even if personal data rights are strengthened in the future.

Essential Considerations Before Participation

1. Permanent waiver of voice data rights: Once submitted, voice data becomes Poseidon's exclusive property forever

2. Uncertain rewards: No legal guarantees regarding token issuance and value

3. Unilateral term changes possible: Company can change terms at any time

4. No collective response possible: Can only respond individually to problems

Conclusion

While Poseidon AI appears to be a credible project with a16z investment and Story Protocol support, a detailed examination of the terms reveals clauses that severely restrict participants' rights. The permanent exclusive license clause for AI training data, in particular, creates a structure where participants could suffer significant losses when personal data value increases in the future.

Before being enticed by the allure of "free airdrops," one must carefully consider whether permanently giving up biometric data is a reasonable trade-off. We strongly recommend understanding the key terms, especially checking Section 1.1(b)'s exclusive license clause, before deciding whether to participate.

Airdrop Trend Editorial Principles

Airdrop Trend, as an information platform that prioritizes community trust, maintains a principle of only featuring directly verified and participated projects on its homepage. This is not simply listing information but thoroughly reviewing each project's terms and conditions to prevent participants from suffering unexpected disadvantages.

In the case of Poseidon AI, while it appears to be a promising project backed by famous VCs on the surface, analysis of its terms revealed clauses that seriously infringe on participants' data rights. Particularly, demanding permanent exclusive rights to voice, a unique biometric data, represents excessively imbalanced trading conditions compared to short-term points or uncertain token rewards.

Of course, project participation is an individual choice, and each person must weigh the risks and rewards to make their decision. However, Airdrop Trend has decided not to include projects with such unfair conditions in its recommendation list. This is not simply a conservative approach but a responsible choice to protect community members' long-term interests and data sovereignty. We aim for a healthy airdrop ecosystem where fair value exchange occurs between participants and projects.