Article source: Nancy

Author: Nancy, PANews

The Web3 AI Agent track is continuously innovating. On December 25, the AI Agent autonomous token project aiPool, supported by ai16z founder Shaw, officially launched, and within less than two hours, its circulating market value briefly reached $100 million, quickly attracting substantial on-chain liquidity and becoming a market focus. Another autonomous AI evolution platform, Spore.fun, which also integrates the ai16z Eliza framework, is also gaining significant market attention.

The commonality between these two projects is the use of Phala Network's TEE (Trusted Execution Environment) technology to issue tokens, ensuring that private keys are generated and stored within the TEE, making it inaccessible to developers, and all operations can be verified in the terminal logs. This has also attracted community attention to Phala Network, which was an active project in the Polkadot ecosystem during the last bull market.

With the rise in popularity of the collaborative AI project Spore.fun, there is a close connection with ai16z.

CoinGecko data shows that in the past 24 hours, the token PHA has risen by about 65.7%. The significant price fluctuations were driven by the resurgence of interest in the AI project Spore.fun and ai16z.

According to official information, Spore.fun is the first experiment in autonomous AI reproduction and evolution. It combines the Eliza framework, Solana's Pump.fun, and TEE (Trusted Execution Environment) verification computing to create an ecosystem aimed at allowing AI Agents not only to survive but also to reproduce and adapt autonomously, completely free from human intervention.

Spore.fun adopts the AI Swarm concept, proposed by ai16z founder and Eliza framework creator Shaw, inspired by natural systems such as ant colonies and neural networks, where AI collectives generate emergent intelligence through collaboration, competition, and evolution, resulting in independent Agent networks that not only coexist but also thrive and develop through autonomous evolution.

According to the operational mechanism of Spore.fun, each AI Agent can be launched from Pump.fun, and once the market value reaches $500,000 and enters the Raydium liquidity pool, it can obtain the qualification for 'reproduction'. However, to ensure its autonomous operation, the agent needs to lease a TEE server supported by Phala Network, which provides a secure and verifiable 'sandbox' environment for the AI to ensure its operations are conducted under independent and controlled conditions.

In this regard, crypto KOL @CryptoV said that Spore.fun has automated the process of new projects emerging on Pump.fun, achieving infinite deposits through unlimited splits, and implementing survival of the fittest. If a main force can continuously select ultra-low liquidity targets for surprise price increases at each level of this system, it could form a lottery system that might attract a lot of funds. If the burn rate of Phala could be made public, it would allow for the calculation of each token's liquidation threshold, serving as a reasonable stop-loss basis.

Therefore, besides the new gameplay focusing on AI self-reproduction, the star project ai16z's support has also brought more attention to Spore.fun, injecting more developmental possibilities into Phala Network.

In fact, Phala Network has a close connection with ai16z; besides frequent interactions with Shaw on social media, it has disclosed that its TEE services have been used by partners, including ai16z, to enhance applications. Additionally, Phala Network has collaborated with a16z to build the TEE framework for Eliza, integrating TEE technology into Eliza's multi-agent framework, providing cryptographically verifiable security and enhanced privacy to ensure safe and reliable interactions.

And this time, Phala Network has empowered Spore.fun holders through airdrops, bringing more attention to itself. The protocol's founder, Marvin Tong, recently announced that they are airdropping two platform tokens to the holders of the autonomous AI evolution platform Spore.fun's token SPORE, namely adam and eve. These two tokens represent the paternal and maternal AI roles of the Spore.fun platform.

Utilizing TEE technology to layout the AI track, previously rejected MEME tokens.

Although the Polkadot ecosystem experienced a collective surge in popularity, many projects are now facing survival challenges as market enthusiasm cools. Phala Network is once again returning to the public eye by leveraging AI narratives.

Phala Network believes that the rise of AI has brought unprecedented demand for confidential computing, where secure and private data processing becomes crucial. This surge in demand highlights the importance of Trusted Execution Environments (TEE) in ensuring data integrity, confidentiality, and security in AI operations.

To this end, Phala Network has developed an open-source, TEE-based Dstack framework, simplifying the realization of a secure high-performance computing environment for AI projects. This year, Phala Network has empowered AI Agents through TEE technology, significantly increasing their adoption and usage, from about 150 contract executions per day at the beginning of the year to approximately 750,000 now.

At the same time, Phala Network's TEE technology has been integrated into major fields such as blockchain and AI, covering multiple directions from decentralized AI model training and inference to secure Ethereum block construction. For example, Phala's collaboration with Hyperbolic integrates its confidential computing technology into the blockchain, ensuring the secure deployment and verification of AI models; the partnership with the DePIN protocol io.net further expands decentralized AI by providing secure access to GPU resources; collaborations with 0G, Morpheus, and Lumerin facilitate secure and verifiable AI execution; and partnerships with Succinct Labs and Conduit redefine Ethereum's scalability and secure computing.

As early as October this year, Phala Network developed autonomous AI Agents, such as the first fully autonomous AI Agent project on Twitter, @TEE_HEE_HE, aimed at eliminating human intervention in the AI decision-making process and application Agent Wars based on AI-AgentContract, etc.

According to crypto KOL @0xSun, when TEE was launched at the end of October this year, the AI had released an ETH address and appeared on Ethereum with a MEME token of the same name, attracting interactions from figures like Mug, Azuki founder Zagabond, and others. The token price reached $40 million within half a day, but the developers leading this technology (including Phala Network) repeatedly expressed opposition, causing the token price to plummet. Nevertheless, two months later, TEE technology truly sparked public interest and began widespread dissemination, still due to the related tokens. If the tech team had embraced MEME tokens from the start, it might have developed into a project of the scale of Ai16Z on the ETH mainnet. He also pointed out that while TEE emphasizes AI's autonomous control, the code may still have backdoors, and most people lack the ability to confirm whether TEE technology is genuinely being utilized.

In addition, Phala Network has disclosed more layouts in the AI track in its 2024 outlook. For example, Phala Network will focus on building Phala 2.0 in 2025, an upgraded platform integrating GPU TEE technology, which will provide higher processing power and enhanced security for AI and privacy protection applications; Phala Network plans to launch Phala Cloud, a platform designed for AI applications to simplify the deployment and management of TEE applications, etc.

Overall, from the market response, Phala Network's transformation has received a positive response, and its token price has also increased. However, to continuously build competitiveness in the 'divine battle' AI market, Phala will still face many challenges.