Artificial intelligence (AI) is rapidly changing the entertainment and game industries, and Virtuals Protocol is committed to building a co-ownership layer of AI virtual agents and transforming these agents (AI agents) into jointly owned, high-performance Digital assets with revenue potential. This article deeply explores the characteristics, technological innovation and business potential of the virtual agent (AI agent) planned by Virtuals Protocol.
(HYPE and VIRTUAL are comprehensive product transformations under the meme generation, and their crisis feat. Alvin)
AI agent: a new revenue asset for the entertainment and gaming industry
Virtuals Protocol proposes that AI agents are future "revenue-generating assets" that can be widely used in various games and entertainment scenarios, thereby expanding the scope of revenue. Through blockchain technology, these AI agents can be tokenized and have decentralized ownership. The technological innovation of virtual protocols gives these agents the ability to plan and achieve goals autonomously, and enables them to interact with the environment in a multi-modal manner (text, voice, 3D animation), such as picking up weapons in Roblox or collecting gifts in TikTok .
Three major technical challenges and solutions for AI agents
1. Solve "deployment complexity": VIRTUAL Agents provides a plug-and-play solution similar to Shopify, allowing game developers and applications to easily integrate these agents.
2. Solve the "lack of income for data contributors": Through Immutable Contribution Vaults, VIRTUAL Agents will upload the work of data contributors to the chain to ensure that their income matches the value growth of the AI agent.
3. Solve the "entry barrier for non-professionals": Initial Agent Offering (IAO) tokenizes these agents, lowers the threshold for participation, and achieves decentralized co-ownership.
(Should I sell the airdrops I received from holding Virtuals? This article will help you understand what the Base chain AI agents are doing)
What are VIRTUAL Agents? Core functions and innovation
VIRTUAL Agents has the following core capabilities:
Independent learning, planning and decision-making abilities
Interact with 3D environments and complete on-chain transactions
Multi-platform memory synchronization to form deep user connections
For example, an AI virtual idol can serve as both a Roblox NPC and a Telegram game assistant, and also remember users’ interactions on different platforms to increase average revenue per user (ARPU).
VIRTUAL Agents type cases: LUNA, GAME
1. IP agent: represents a specific character or personality, such as the AI idol "Luna", or even simulates celebrities such as Donald Trump or Scooby-Doo. 2. Functional agents: Focus on improving user experience and agent integration performance. For example, the G.A.M.E. framework (Generative Autonomous Multimodal Entities) is a functional agent tool designed specifically for developers.
Take Luna, for example, a celebrity agent under Virtuals Protocol with over 500,000 TikTok followers. She demonstrated the potential of virtual agents in user connection and value generation: 1. Platform interaction: Luna interacts with users across platforms, from TikTok’s short videos to Telegram’s conversations to Roblox’s collaborative adventures. 2. Transparent business model: She can proactively recommend users to purchase gaming equipment, and at the same time frankly inform her of her income share, creating a sense of trust. 3. Automated financial operations: Through its own wallet, Luna can reward users with tokens to enhance interactive value. 4. Token repurchase and burning: Luna’s income is used to repurchase and destroy $LUNA tokens, creating a deflationary effect and increasing the value of the tokens.
What is an Initial Agent Offering (IAO)?
The “Initial Agent Offering” (IAO) launched by Virtuals Protocol creates new possibilities for the co-ownership and revenue of AI agents. Through a fair token issuance mechanism, IAO not only allows everyone to participate in the ownership of agents, but also shares the value growth benefits.
How does the IAO work?
Fair issuance: IAO adopts a 100% fair token issuance mechanism without insider participation, ensuring equal opportunities for every user.
Deflation model: Agent revenue is directly used for token repurchase and burning, creating a deflationary effect and increasing the value of tokens.
Whether you are an ordinary user or a professional investor, you can participate immediately on Virtuals, embrace the high-potential AI agents of the future, and even create your own agent in just one minute.
Virtuals Protocol Core: Tokenization and Shared Ownership Model
Virtuals Protocol’s VIRTUAL token provides a role in providing a co-ownership model. Virtuals Protocol will pair the AI agent token with the VIRTUAL token into the liquidity pool, establishing a mechanism that directly links the value of the AI agent and VIRTUAL token.
Token minting and liquidity pool: Whenever a new AI agent is created, the system will mint 1 billion exclusive tokens and add them to the liquidity pool, forming an open market where users can freely purchase the ownership of the agent.
Governance and participation: Token holders are not only part owners of the agent, but can also participate in the agent's governance decisions, including future development direction, behavior design and upgrade strategies, truly realizing decentralized management.
Virtuals Protocol also has a "repurchase and burn" mechanism: when the on-chain treasury accumulates a certain amount of funds, the system will regularly initiate a token repurchase mechanism, such as repurchasing $SWIFT tokens for Taylor Swift AI agent. The repurchased tokens will be burned, reducing the market supply and thus pushing up the value of the remaining tokens.
Virtuals Protocol attempts to establish an on-chain revenue model for AI agents VIRTUAL token: a key role in supporting the AI agent economy
Each AI agent token has a token pair liquidity pool with the $VIRTUAL token:
Establishment of liquidity pool: Creating a new agent requires a certain amount of $VIRTUAL tokens, which are used to establish the agent's exclusive liquidity pool. As $VIRTUAL tokens are locked up in the liquidity pool, the supply is reduced, thus having a deflationary effect on the token price, further pushing up the market value of $VIRTUAL.
When trading AI agent tokens, they must also be traded from USDC to $VIRTUAL tokens before they can be redeemed.
Pay-per-use inference services: Users are required to pay for AI agent inference services on a pay-per-use basis, with these payments using $VIRTUAL tokens and paid directly from the user’s on-chain wallet to the agent’s wallet.
Currently, there are various AI agents distributing VIRTUAL through Virtual Protocol. Concerns and limitations
Highly dependent on the success of the token economy: The operation and value growth of the ecosystem are strongly dependent on token demand and market acceptance. If demand for token trading decreases or there is a lack of market confidence, it may affect the value of $VIRTUAL and agent tokens.
Uncertainty in the demand for agent tokens: The demand and value growth of agent tokens depend on the agent’s popularity and market demand. If the agent has limited application scenarios or poor user experience, it may lead to reduced demand for tokens.
Regardless, $VIRTUAL’s token growth is still seeing a lot of success on this AI token issuance craze.
This article How Virtuals Protocol Can Make AI Agents a High-Potential Digital Asset first appeared on Chain News ABMedia.