Author: 0xJeff Source: X, @Defi0xJeff Translator: Shan Eoba, Jinse Finance
The metaverse - a collective concept of a virtual shared space - has gained significant attention in the early 2020s due to the rise of the P2E (play-to-earn) model and the cyberpunk-style vision of a digital future.
At the time, many projects promised to create a world where your digital identity or Non-Fungible Tokens (NFTs) could interact, trade, and play in the on-chain economy. However, many of these projects ultimately failed to deliver on these promises.
Where did the problems lie in the previous cycle?
• Projects raised $10 million to $100 million but only delivered mediocre experiences.
• The P2E model collapsed due to unsustainable token economics (the model of simply attracting players by distributing tokens simply doesn't work).
From this, we have learned two key lessons:
1. Engaging and compelling game experiences must be the priority.
2. A sustainable economic system is a prerequisite for building a lasting virtual world.
Fast forward to today: the era of agent-based systems has arrived. With the rise of powerful Large Language Models (LLMs), agent frameworks, and AI ecosystems, more immersive and engaging experiences are now possible.
The metaverse is no longer limited to human-to-human interactions, but rather we are seeing the following trends:
• Agent-to-agent interactions
• Human-to-agent experiences
Imagine watching intelligent agents negotiate the price of a digital asset, collaborate to create NFT art, or negotiate a lower price. These immersive, dynamic interactions go far beyond simply replying on Twitter or generating content.
How are agents evolving?
The development of AI agents is perfectly aligned with the vision of the metaverse. Here are the current trends:
• More entertaining and sophisticated personalized agents:
These agents are equipped with advanced analytics and prediction tools, no longer just "posting bots" but providing deep insights.
• Integration of on-chain functionality:
Intelligent agents are integrating with blockchain protocols to perform autonomous trading, lending, yield farming, and more.
• 3D visualization and increased contextual awareness:
With advancements in 3D virtual avatars and environmental perception technologies, agents are becoming more lifelike and able to interact with users in more meaningful ways.
Building the agent world
To accommodate these agents, we need to build the infrastructure for a world where agents can interact with each other and with humans.
• @realisworlds is developing a virtual world similar to Earth, where agents can evolve, learn, and create their own civilizations over time.
• @hyperfy_io is building infrastructure for users to customize their own metaverse spaces on the web.
However, building immersive environments alone is not enough; we also need critical DeFi infrastructure to support these in-game economies.
The role of DeFi in the agent metaverse
To enable agents to perform on-chain transactions, lending, or asset management, the underlying DeFi infrastructure must have the following capabilities:
• Sufficient scalability to handle high-value transactions.
• Risk management mechanisms (e.g., preventing agents from transferring funds to malicious actors).
For example, @gizatechxyz is a good example of DeFi infrastructure driving these use cases. Their product ARMA simplifies the complexity of cross-protocol stablecoin yield farming, including monitoring APRs and managing risk.
Imagine embedding this functionality into an immersive agent world, where agents can autonomously handle all operations, from **@pendle_fi**'s PT loops to leveraging Boros' non-directional interest rate strategies.
DeFi-powered agents will make these tools easily accessible to regular users, eliminating complexity while unlocking new opportunities.
The backbone: decentralized AI infrastructure
To truly make the metaverse operational, we need a decentralized AI infrastructure running in the background. This is not only about enabling agents to function, but also about making them trustworthy.
• Create a secure execution environment for on-chain interactions.
• Allow both humans and agents to understand and verify the operational processes within the agents' "minds".
Recall the second and third stages of AI agent transparency that I mentioned in my Chromia article:
• Second stage: Open access to training data and inference logs - the agents' "thoughts" - so that people can view, audit, and verify.
• Third stage: Achieve transparent model execution through technologies like zkML and opML, enabling community-level verification.
When we have all of this in place, agents will not only become smarter, but also more accountable and secure. This is key to building a metaverse where people can confidently interact with large-scale agents.
At that point, we will see a diverse array of agents from @TalusNetwork, @virtuals_io, @ai16zdao, @TheoriqAI, @autonolas, @modenetwork, and others seamlessly switching between different metaverse worlds - from @realisworlds to @hyperfy_io and @decentraland, evolving through their interactions.
A broader perspective
As the ecosystem matures, we are also seeing Web2 AI talent flowing into the Web3 space:
• @ai16zdao is demonstrating the power of open-source innovation through its growing GitHub star count.
• @virtuals_io is driving adoption through its agent sandbox, allowing developers to test the G.A.M.E framework and gain insights into the agents' "minds" without having to launch a token.
Act III: The metaverse we've been waiting for
In the next stage, I see the following trends taking shape:
• Personalized agents will become more knowledgeable, specialized, and humanized.
• World-building infrastructure will create immersive environments where agents and humans can coexist.
• Decentralized AI infrastructure will mature, bringing the trust and security needed for agent autonomy.
• DeFi agents will unlock new use cases, from yield farming optimization to advanced trading strategies.
• The boundaries between personalized agents, utility agents, and DeFi agents will blur, forming integrated solutions.
• The pace of innovation will accelerate, attracting more developers from outside the crypto industry to push the technological boundaries further.
Final thoughts
The metaverse will no longer carry negative connotations. It is no longer an overhyped buzzword, but is transforming into a dynamic, agent-driven reality. The key pieces are falling into place, and the next generation of virtual worlds will be immersive, engaging, and powered by AI and DeFi.
This is just the beginning.
