In the digital economy, AI agents are transforming from traditional tool roles to important economic drivers. They can not only autonomously analyze data and optimize decisions, but also drive user engagement and revenue growth by performing complex tasks. These agents are widely used in games, social media, financial services and other fields, creating rich personalized and interactive experiences. Their rise marks the shift of artificial intelligence from passive service to active participation, injecting new vitality into the digital economy.
Blockchain technology plays a key role in this process. Through a decentralized architecture, blockchain provides a secure, autonomous and transparent operating environment for AI systems. It allows agents to manage digital assets on the chain, achieve autonomous operations and immutable records, while ensuring the trust foundation of multi-party collaboration through smart contracts. This combination not only enhances the functionality of AI agents, but also provides new business models and incentive mechanisms for developers and users.
Virtuals Protocol is an important platform for promoting the development of AI agents and decentralized applications. By introducing a co-ownership model, Virtuals Protocol transforms AI agents into community assets, enabling users to jointly participate in the development, operation, and profit distribution of agents.
1. What is Virtuals Protocol ?
Virtuals Protocol is a highly-integrated artificial intelligence and metaverse protocol launched in 2024. Its goal is to completely change the way virtual interactions are conducted by creating hyper-personalized and immersive experiences.
At its core, Virtuals Protocol integrates advanced AI agents into digital environments such as games, metaworlds, and online interactions, leveraging a distributed architecture to increase creativity, diversity, and trust, ensuring that virtual participation is innovative and fair.
Virtuals Protocol will further enhance the sense of integration and sedimentation through generative artificial intelligence and multimodal output (text, sound and visual effects), making each virtual experience a unique journey. This approach not only improves the user experience, but also creates new economic opportunities for developers, creators and users in the ecosystem.
The co-ownership model of Virtuals Protocol is a highlight, allowing users to invest in and co-own artificial intelligence-based virtual assets, such as AI companions and virtual influencers. These assets are very valuable on platforms such as Roblox and TikTok. In this way, Virtuals Protocol encourages shared responsibility and community ownership, sharing benefits to all participants.
2. How does Virtuals Protocol work?
Virtuals Protocol runs on a decentralized ecosystem that encourages the creation and use of artificial intelligence agents (VIRTUAL). These agents integrate various core modules, including cognitive core, voice and sound core, and visual core, to enable complex multimodal interactions.
Virtuals Protocol is an advanced framework designed to manage and coordinate AI agent functions used in a variety of consumer applications. It is equipped with a powerful infrastructure that supports the interaction between external applications and AI agents through the "Agent Prompt Interface". This interface is like a bridge, enabling AI agents to communicate and perform tasks smoothly. Developers can integrate the functions of Virtuals Protocol into their applications through a series of APIs and SDKs to achieve dynamic AI-driven functions. This two-way interface not only facilitates real-time data flow, but also enables AI agents to perform complex tasks, respond to user interactions, and perform calculations efficiently.
Through these functions, VIRTUAL can act like characters in IP, perform specific tasks, and even act as digital versions of individuals, enhancing the entertainment and practicality of virtual space. The ecosystem includes two main levels:
- Protocol layer : Provides basic AI models and algorithms for developers to access and build on. Contributors provide data and develop models, while validators ensure the quality and authenticity of these inputs.
- DApp layer : focuses on the practical application of AI models, allowing decentralized applications to seamlessly integrate VIRTUAL. The developer-friendly software development kit (SDK) simplifies the process of integrating advanced AI functions into various DApp environments.
Economic incentives play an important role in supporting the development of the Virtuals Protocol ecosystem. Contributors and validators are rewarded with VIRTUAL tokens for their efforts, ensuring a continuous influx of high-quality data and models. At the same time, the protocol repurchases VIRTUAL tokens through the revenue generated by DApps to maintain the stability and long-term development of the token value.
3. Virtuals Protocol Technology Core
- Generative AI : Generate text, sound and vision to bring a deeper and more meaningful experience.
- Multimodal output : Enhance the immersion and vividness of virtual interactions through cross-media functions.
- Distributed ecosystem : Ensure the high quality and credibility of data and resources through decentralized architecture and parallel mechanisms.
4. Virtuals Protocol founding team and financing information
The co-founders of Virtuals Protocol are from BCG and Imperial College and have been engaged in the field of encryption for a long time. The AI team is composed of PhDs from prestigious universities such as MIT, Harvard, and Cambridge. More importantly, this team has persisted in the bear market. Since the transformation from a game guild in December 2021, it has unexpectedly accumulated AI talents and infrastructure by experimenting with the venture capital studio model in 2022, and finally turned to consumer AI and encryption in December 2023, and reshaped its brand.
5. Virtuals Protocol Token Economics
$VIRTUAL token is the core currency of Virtuals protocol and is used for all agent token transactions. It runs on the Base chain of Ethereum Layer2. If users want to buy VIRTUAL Agents tokens in the ecosystem, they need to exchange VIRTUAL first and then use VIRTUAL to purchase. The First will launch $VIRTUAL today, and users can trade directly through the platform to avoid complicated transaction processes.
The total supply of $VIRTUAL is capped at 1 billion tokens, all fully unlocked. The distribution includes 60% in public circulation, 5% allocated to liquidity pools, and 35% stored in the ecosystem treasury. This treasury is managed by the DAO and has a maximum emission cap of 10% per year for the next three years.
As a utility token and governance token for the Virtuals Protocol ecosystem, it has multiple functions, including encouraging contributions, supporting development decisions, and managing protocol funds. By staking VIRTUAL tokens, token holders can influence the AI agent projects that receive development support and ensure that resources are allocated in the interest of the community.
The distribution structure of VIRTUAL is: 60% for public circulation, 5% for liquidity pools, and 35% reserved for the ecosystem's treasury. The ecosystem's funds are managed by the Virtuals Protocol DAO, supporting community-driven projects and requiring governance approval for expenditures to ensure sustainable development and reasonable resource allocation. Using VIRTUAL tokens has established a self-sustaining economic system that empowers AI agents and enables holders to participate in the development and governance of the protocol.
Whenever a new AI agent is generated, a corresponding token (agent token) is issued and paired with the VIRTUAL token to create an agent ownership market. As co-owners, agent token holders can participate in the governance and income distribution of the agent. This mechanism effectively solves the income distribution problem for AI developers and data contributors, while reducing the complexity of implementing AI agents for application developers.
VI. VIRTUAL Future Value Analysis
Virtuals Protocol enables decentralized co-ownership of AI agents, turning them into community-owned, income-generating assets. Users can easily deploy AI agents and profit from the virtual economy using the protocol’s development stack, including SDKs and Interference APIs.
This market-driven and co-owned model is consistent with Virtuals Protocol's mission to promote innovation and inclusion in the AI and gaming industries. As the ecosystem grows and more users participate, Virtuals Protocol has the potential to become a leader in the convergence of AI and the Metaverse.
Its future value is reflected in the following aspects:
- Market demand : With the rapid development of generative AI and the metaverse, the demand for efficient, secure, and easy-to-use AI agent solutions will continue to grow.
- Ecosystem expansion : The protocol attracts more users to participate through IAO (Initial Intelligent Entity Offering) and the co-ownership mechanism of intelligent entity tokens, injecting continuous vitality into the ecosystem.
- Decentralized Innovation : Ensure the long-term sustainable development of the protocol through community governance and decentralized incentive mechanisms.
- Buyback plan : Support token buyback and destruction through DApp revenue, providing long-term support for token value.
