Author : Carol
The integration of artificial intelligence (AI) and blockchain (Web3) is reshaping the way the digital world interacts, bringing far-reaching impacts to social, entertainment, productivity tools, and decentralized economic models. The AI protocol framework at the application layer, combined with the AI Agent at the product layer, improves the user experience in a smarter and more personalized way, while Web3 provides a new economic model and market environment for the AI ecosystem through decentralized governance, smart contracts, and token economic systems. Balance was created by the E-PAL team, a global gaming companion platform, and is committed to exploring the application of the AI protocol framework in the Web3 ecosystem and building an interactive entertainment ecosystem with AI interaction, decentralized identity (DID), fan economy, and token economy as the core. Its goal is not only to build a gaming social platform based on Web3, but also to promote the innovation and development of the decentralized interactive entertainment ecosystem with the help of AI and blockchain technology.
To achieve this goal, E-PAL and its Balance have made significant progress in financing. In July 2024, E-PAL completed a $30 million financing led by a16z and Galaxy; subsequently, Balance sold more than $80 million in nodes through the Key Node program. These funds provide strong support for the implementation of its AI+Web3 strategy.
From E-PAL to Balance: Strategic Upgrade from Web2 to Web3
Founded in 2020, E-PAL is an influential game companion platform with nearly 10 million registered users and nearly 1 million active companions (Epals), focusing on providing customized companion services to gamers around the world. Although the platform has made significant progress in the Web2 world, with revenue of 26 million US dollars and profit of 14 million US dollars in 2024, its operating model has also exposed some structural problems as its scale grows.
Challenges to existing business models
1. Gross profit loss : E-PAL adopts a centralized platform commission model, and the platform needs to share revenue with Epals, which limits profit margins. This business model can develop rapidly in the early stages, but as the user scale expands and competition intensifies, the platform's profit margins are further compressed, making long-term growth challenging.
2. User churn : After accumulating a certain fan base on the platform, Epals often choose to leave the platform and turn to private transactions, thus destroying the ecological stability of the platform. Since the platform cannot provide a continuous long-term incentive mechanism, many high-quality Epals gradually leave E-PAL, resulting in a decline in user traffic and content quality.
3. Lack of content assetization : Under the Web2 model, the services provided by Epals are limited to one-time transactions and cannot be converted into long-term digital assets. The experience, skills and fan relationships of the companions cannot be accumulated or monetized, which limits their development path on the platform.
Web3 Economic Model Solution
To meet these challenges, E-PAL decided to move towards Web3 and launched Balance, a decentralized social and interactive entertainment protocol that combines AI and blockchain technology. Balance aims to:
1. Change the game companion mode through AI Agent : Combine AI and real-person game companions to optimize the user experience, and use blockchain technology to settle revenue, reduce the commission of centralized platforms, and improve the overall profit margin. As an intelligent game companion assistant, AI Agent can provide 24/7 service, allowing users to enjoy the game interactive experience anytime and anywhere, and no longer be restricted by the time arrangement of real-person game companions.
2. Give Epals digital identity and fan economic capabilities : Users can issue relevant tokens based on the influence of their AI Epal creations, creating new business models that enable players to build long-term value rather than just providing one-time services. Fans can also support their favorite Epals through tokens, and the growth of Epal and the fan economic effect will further promote the platform's ecological activity.
3. Build an AI ecosystem and promote personalized AI interaction : AI Agents can not only provide companionship, social and game-assisted services, but also serve as an important part of the Web3 economy, supporting NFT, on-chain social and decentralized identity (DID) systems. Users can freely create and customize AI Agents to give them unique personalities, skills and growth paths, and trade or lease them in the Web3 ecosystem.
In short, the goal of Balance is to build a gaming social platform based on Web3, and at the same time, to promote the innovation and development of the decentralized interactive entertainment ecosystem with the help of AI and blockchain technology. Under the Web3 system, users' interactive data and AI assets can be truly "owned" and circulated, breaking through the restrictions on user assets imposed by the platform in the Web2 era, and enabling users to participate in the AI economy in a more open and fair environment.
User conversion from Web2 to Web3: efficient migration of own ecosystem
Balance has built a differentiated Web3 user growth path based on the nearly 10 million registered users that E-PAL has accumulated in the Web2 field. Compared with the "external traffic" model that relies on third-party social platforms (such as Telegram and TikTok), Balance has significantly reduced user education costs and achieved a higher conversion rate by directly converting its own user pool. At present, Balance has successfully converted nearly 3 million E-PAL users to the Web3 ecosystem, with a user activation rate of over 30%.
Conversion strategy: lightweight entry and progressive incentives
1. Points claiming mechanism : E-PAL users can claim initial points through the Balance official website, which directly reflects the on-chain mapping of their original value.
2. Multi-touchpoint access : Push Balance's Web3 functions to users through E-PAL's own channels such as internal messages and email notifications to avoid information interference from third-party platforms.
3. Airdrop and ecosystem binding : The points claimed by users will be converted into EPT token airdrops in proportion in the future. At the same time, the task system will guide users to deeply participate in the ecosystem and gradually complete the transformation from "points holders" to "Web3 co-builders".
Balance AI: In-depth application of self-developed AI protocol framework in Web3 ecology
As an important component of the Web3 ecosystem, AI protocols and frameworks play a vital role in the Balance system. Traditional AI Agents are mostly at the stage of role-based chatbots, with limited interaction methods, lack of intelligent learning capabilities, and unable to adapt to diverse scenarios. Balance, through its self-developed AI protocol and framework training AI Epal, gives AI Agents a wider range of application scenarios, making them true intelligent entities in the Web3 ecosystem and having economic value.
The AI Epal provided by Balance AI can continuously learn and optimize the interactive experience. Users can customize the personality, behavior patterns and expertise of AI Epal to make it a high-quality game companion, learning assistant or productivity tool. Creators can issue the AI Epal token through AI Epal to give AI Agent economic attributes, and the platform can further improve user retention through AI Epal's social matrix and decentralized revenue distribution mechanism. It is worth mentioning that if creators want to issue AI Agent tokens on the Balance platform, the AI Epal they create must meet certain conditions, such as more than 10,000 interactive chats. Balance has innovated the strict selection of Token issuance mechanisms to a certain extent.
AI Epal also has cross-platform social capabilities. It can not only run within the Balance ecosystem, but also expand to social platforms such as Twitter and Instagram, actively publish content, interact with users, and even build its own fan base. In the Web3 ecosystem, the assetization of identity and data is the key to the economic value of AI Agent. Balance uses decentralized identity (DID) and NFT technology to enable AI Epal to record the user's interaction history and store it in the form of on-chain assets, giving it unique value accumulation attributes. The user's AI Epal is not only an interactive intelligent entity, but can also be traded, upgraded or rented as a digital asset, bringing a more diversified business model to the Balance AI ecosystem.
The application of AI protocol framework in Web3 ecology is far beyond the entertainment field. AI Epal at the product level can also be widely used in multiple scenarios such as game companionship, education, and productivity tools. For example, in games, AI Epal can be used as a companion assistant to provide tactical analysis, teaching, and competitive training. In the field of education, AI Epal can provide customized learning paths and support interactive learning experiences such as knowledge questions and answers and real-time tests. In the field of productivity, AI assistants can help manage schedules, optimize task allocation, and improve team collaboration efficiency.
Through AI Epal, Balance makes AI Agent no longer just a cold tool, but an intelligent entity that can continuously learn and grow and truly have economic value in the Web3 ecosystem. Web3 gives AI Agent unprecedented autonomy, enabling it to become the user's digital asset, smart assistant and social partner, promoting the innovative development of the AI economy in the Web3 era.
Web3 Economic System: The Synergy between Balance Key Node and EPT Token
In order to ensure the long-term sustainable development of the Balance ecosystem, the platform adopts decentralized nodes (Key Nodes) and EPT token economic models to provide support for the ecological and user economic system based on its AI protocol framework. The design of this economic system not only solves the imbalance between platform profits and user income distribution under the traditional Web2 model, but also introduces decentralized governance and economic incentives, making the Balance ecosystem more autonomous and scalable.
Balance Key Node: The cornerstone of Web3 ecology
Balance Key Node is one of the core infrastructures of the Balance ecosystem. It is not only a technical node, but also a core component that supports AI Agent interaction, data processing, and revenue distribution. Key Node has the following core functions:
1. Governance mechanism : Key Node holders can participate in platform governance, propose and vote on optimization plans for the AI Agent economic model, and ensure the fairness and sustainability of the AI ecosystem. Holders can have decision-making power in parameter adjustment, profit distribution rules, and the launch of new functions, thus forming an AI interactive platform co-governed by the community.
2. Revenue distribution : Key Node holders can obtain AI interaction revenue within the Balance ecosystem, Fans Protocol revenue distribution, etc. Unlike traditional Web2 centralized platforms, the Web3 mechanism ensures decentralized revenue flow, allowing long-term holders to enjoy the returns brought by platform growth.
3. AI computing infrastructure : Key Node will support AI training, decentralized data storage and computing power allocation in the future, and improve the intelligence level of AI Agent. For example, users can contribute computing resources for AI Epal training and receive EPT tokens as rewards, forming a decentralized AI computing network and further enhancing the computing resources and technical capabilities of the Balance ecosystem.
EPT Token: The Core of the Balance Economic System
EPT token is the core economic carrier of the Balance ecosystem. Its main applications include:
1. Game companion payment : EPT is the main payment method of the E-PAL platform, realizing decentralized companion transactions. Users can use EPT to directly pay for companion services, and companions can obtain EPT and circulate, exchange or store it within the platform, avoiding the high commission problem of the Web2 platform.
2. AI Agent Economy : Users can purchase AI Epal or AI Agent-related tokens through EPT to support interaction and exclusive services. For example, fans can purchase a limited edition NFT of an AI Epal or subscribe to AI services, thus forming an innovative business model similar to the Web3 membership economy.
3. Governance voting : EPT holders can participate in platform proposals to determine the future development direction of Balance. Proposals may include adjustments to the economic model, the launch of new features, optimization of token incentive schemes, etc., to ensure that the entire ecosystem is led by the community rather than controlled by a centralized mechanism.
4. On-chain transactions and NFT ecology : EPT is used as the gas fee of the Balance chain and is also used for NFT transactions, decentralized identity (DID) verification and other applications. This means that every AI interaction, transaction or upgrade is inseparable from EPT, making it an indispensable foundation in the Balance ecology.
The synergy between Key Node and EPT tokens enables Balance to further build a complete Web3 interactive ecosystem outside the AI protocol framework economic system, where users, AI agents and developers can find their own roles, create value through participation, and enjoy the economic growth dividend brought by Web3.
Conclusion: How does Balance shape the future of AI+Web3?
Balance has created a new interactive entertainment model through the deep integration of the AI protocol framework and the Web3 economic system. The AI Agent based on its AI protocol framework is no longer just a simple chatbot, but an intelligent entity with learning ability, economic attributes, and the ability to establish long-term interactions with users.
In the future, Balance plans to launch EPT tokens in Q1 2025 and list them on centralized exchanges. At the same time, it will launch a token issuance system for AI Agents with certain strict selection standards, such as more than 10,000 interactive chats, etc. During Q2-Q3, the platform will launch the Balance ID system and further optimize the intelligent capabilities of AI Agents.
The future of AI+Web3 interactive entertainment is gradually taking shape under the impetus of Balance. With the advancement of decentralized AI technology, the improvement of the on-chain economic system, and the deep integration with AI interaction, Balance is building a truly intelligent, decentralized, and sustainable interactive economic ecosystem. This ecosystem will not only reshape the AI interaction model, but will also become a major innovation of the AI economic system in the Web3 era, bringing new opportunities and value growth points to users and developers.
The integration of artificial intelligence (AI) and blockchain (Web3) is reshaping the way the digital world interacts, bringing far-reaching impacts to social, entertainment, productivity tools, and decentralized economic models. The AI protocol framework at the application layer, combined with the AI Agent at the product layer, improves the user experience in a smarter and more personalized way, while Web3 provides a new economic model and market environment for the AI ecosystem through decentralized governance, smart contracts, and token economic systems. Balance was created by the E-PAL team, a global gaming companion platform, and is committed to exploring the application of the AI protocol framework in the Web3 ecosystem and building an interactive entertainment ecosystem with AI interaction, decentralized identity (DID), fan economy, and token economy as the core. Its goal is not only to build a gaming social platform based on Web3, but also to promote the innovation and development of the decentralized interactive entertainment ecosystem with the help of AI and blockchain technology.
To achieve this goal, E-PAL and its Balance have made significant progress in financing. In July 2024, E-PAL completed a $30 million financing led by a16z and Galaxy; subsequently, Balance sold more than $80 million in nodes through the Key Node program. These funds provide strong support for the implementation of its AI+Web3 strategy.
From E-PAL to Balance: Strategic Upgrade from Web2 to Web3
Founded in 2020, E-PAL is an influential game companion platform with nearly 10 million registered users and nearly 1 million active companions (Epals), focusing on providing customized companion services to gamers around the world. Although the platform has made significant progress in the Web2 world, with revenue of 26 million US dollars and profit of 14 million US dollars in 2024, its operating model has also exposed some structural problems as its scale grows.
Challenges to existing business models
1. Gross profit loss : E-PAL adopts a centralized platform commission model, and the platform needs to share revenue with Epals, which limits profit margins. This business model can develop rapidly in the early stages, but as the user scale expands and competition intensifies, the platform's profit margins are further compressed, making long-term growth challenging.
2. User churn : After accumulating a certain fan base on the platform, Epals often choose to leave the platform and turn to private transactions, thus destroying the ecological stability of the platform. Since the platform cannot provide a continuous long-term incentive mechanism, many high-quality Epals gradually leave E-PAL, resulting in a decline in user traffic and content quality.
3. Lack of content assetization : Under the Web2 model, the services provided by Epals are limited to one-time transactions and cannot be converted into long-term digital assets. The experience, skills and fan relationships of the companions cannot be accumulated or monetized, which limits their development path on the platform.
Web3 Economic Model Solution
To meet these challenges, E-PAL decided to move towards Web3 and launched Balance, a decentralized social and interactive entertainment protocol that combines AI and blockchain technology. Balance aims to:
1. Change the game companion mode through AI Agent : Combine AI and real-person game companions to optimize the user experience, and use blockchain technology to settle revenue, reduce the commission of centralized platforms, and improve the overall profit margin. As an intelligent game companion assistant, AI Agent can provide 24/7 service, allowing users to enjoy the game interactive experience anytime and anywhere, and no longer be restricted by the time arrangement of real-person game companions.
2. Give Epals digital identity and fan economic capabilities : Users can issue relevant tokens based on the influence of their AI Epal creations, creating new business models that enable players to build long-term value rather than just providing one-time services. Fans can also support their favorite Epals through tokens, and the growth of Epal and the fan economic effect will further promote the platform's ecological activity.
3. Build an AI ecosystem and promote personalized AI interaction : AI Agents can not only provide companionship, social and game-assisted services, but also serve as an important part of the Web3 economy, supporting NFT, on-chain social and decentralized identity (DID) systems. Users can freely create and customize AI Agents to give them unique personalities, skills and growth paths, and trade or lease them in the Web3 ecosystem.
In short, the goal of Balance is to build a gaming social platform based on Web3, and at the same time, to promote the innovation and development of the decentralized interactive entertainment ecosystem with the help of AI and blockchain technology. Under the Web3 system, users' interactive data and AI assets can be truly "owned" and circulated, breaking through the restrictions on user assets imposed by the platform in the Web2 era, and enabling users to participate in the AI economy in a more open and fair environment.
User conversion from Web2 to Web3: efficient migration of own ecosystem
Balance has built a differentiated Web3 user growth path based on the nearly 10 million registered users that E-PAL has accumulated in the Web2 field. Compared with the "external traffic" model that relies on third-party social platforms (such as Telegram and TikTok), Balance has significantly reduced user education costs and achieved a higher conversion rate by directly converting its own user pool. At present, Balance has successfully converted nearly 3 million E-PAL users to the Web3 ecosystem, with a user activation rate of over 30%.
Conversion strategy: lightweight entry and progressive incentives
1. Points claiming mechanism : E-PAL users can claim initial points through the Balance official website, which directly reflects the on-chain mapping of their original value.
2. Multi-touchpoint access : Push Balance's Web3 functions to users through E-PAL's own channels such as internal messages and email notifications to avoid information interference from third-party platforms.
3. Airdrop and ecosystem binding : The points claimed by users will be converted into EPT token airdrops in proportion in the future. At the same time, the task system will guide users to deeply participate in the ecosystem and gradually complete the transformation from "points holders" to "Web3 co-builders".
Balance AI: In-depth application of self-developed AI protocol framework in Web3 ecology
As an important component of the Web3 ecosystem, AI protocols and frameworks play a vital role in the Balance system. Traditional AI Agents are mostly at the stage of role-based chatbots, with limited interaction methods, lack of intelligent learning capabilities, and unable to adapt to diverse scenarios. Balance, through its self-developed AI protocol and framework training AI Epal, gives AI Agents a wider range of application scenarios, making them true intelligent entities in the Web3 ecosystem and having economic value.
The AI Epal provided by Balance AI can continuously learn and optimize the interactive experience. Users can customize the personality, behavior patterns and expertise of AI Epal to make it a high-quality game companion, learning assistant or productivity tool. Creators can issue the AI Epal token through AI Epal to give AI Agent economic attributes, and the platform can further improve user retention through AI Epal's social matrix and decentralized revenue distribution mechanism. It is worth mentioning that if creators want to issue AI Agent tokens on the Balance platform, the AI Epal they create must meet certain conditions, such as more than 10,000 interactive chats. Balance has innovated the strict selection of Token issuance mechanisms to a certain extent.
AI Epal also has cross-platform social capabilities. It can not only run within the Balance ecosystem, but also expand to social platforms such as Twitter and Instagram, actively publish content, interact with users, and even build its own fan base. In the Web3 ecosystem, the assetization of identity and data is the key to the economic value of AI Agent. Balance uses decentralized identity (DID) and NFT technology to enable AI Epal to record the user's interaction history and store it in the form of on-chain assets, giving it unique value accumulation attributes. The user's AI Epal is not only an interactive intelligent entity, but can also be traded, upgraded or rented as a digital asset, bringing a more diversified business model to the Balance AI ecosystem.
The application of AI protocol framework in Web3 ecology is far beyond the entertainment field. AI Epal at the product level can also be widely used in multiple scenarios such as game companionship, education, and productivity tools. For example, in games, AI Epal can be used as a companion assistant to provide tactical analysis, teaching, and competitive training. In the field of education, AI Epal can provide customized learning paths and support interactive learning experiences such as knowledge questions and answers and real-time tests. In the field of productivity, AI assistants can help manage schedules, optimize task allocation, and improve team collaboration efficiency.
Through AI Epal, Balance makes AI Agent no longer just a cold tool, but an intelligent entity that can continuously learn and grow and truly have economic value in the Web3 ecosystem. Web3 gives AI Agent unprecedented autonomy, enabling it to become the user's digital asset, smart assistant and social partner, promoting the innovative development of the AI economy in the Web3 era.
Web3 Economic System: The Synergy between Balance Key Node and EPT Token
In order to ensure the long-term sustainable development of the Balance ecosystem, the platform adopts decentralized nodes (Key Nodes) and EPT token economic models to provide support for the ecological and user economic system based on its AI protocol framework. The design of this economic system not only solves the imbalance between platform profits and user income distribution under the traditional Web2 model, but also introduces decentralized governance and economic incentives, making the Balance ecosystem more autonomous and scalable.
Balance Key Node: The cornerstone of Web3 ecology
Balance Key Node is one of the core infrastructures of the Balance ecosystem. It is not only a technical node, but also a core component that supports AI Agent interaction, data processing, and revenue distribution. Key Node has the following core functions:
1. Governance mechanism : Key Node holders can participate in platform governance, propose and vote on optimization plans for the AI Agent economic model, and ensure the fairness and sustainability of the AI ecosystem. Holders can have decision-making power in parameter adjustment, profit distribution rules, and the launch of new functions, thus forming an AI interactive platform co-governed by the community.
2. Revenue distribution : Key Node holders can obtain AI interaction revenue within the Balance ecosystem, Fans Protocol revenue distribution, etc. Unlike traditional Web2 centralized platforms, the Web3 mechanism ensures decentralized revenue flow, allowing long-term holders to enjoy the returns brought by platform growth.
3. AI computing infrastructure : Key Node will support AI training, decentralized data storage and computing power allocation in the future, and improve the intelligence level of AI Agent. For example, users can contribute computing resources for AI Epal training and receive EPT tokens as rewards, forming a decentralized AI computing network and further enhancing the computing resources and technical capabilities of the Balance ecosystem.
EPT Token: The Core of the Balance Economic System
EPT token is the core economic carrier of the Balance ecosystem. Its main applications include:
1. Game companion payment : EPT is the main payment method of the E-PAL platform, realizing decentralized companion transactions. Users can use EPT to directly pay for companion services, and companions can obtain EPT and circulate, exchange or store it within the platform, avoiding the high commission problem of the Web2 platform.
2. AI Agent Economy : Users can purchase AI Epal or AI Agent-related tokens through EPT to support interaction and exclusive services. For example, fans can purchase a limited edition NFT of an AI Epal or subscribe to AI services, thus forming an innovative business model similar to the Web3 membership economy.
3. Governance voting : EPT holders can participate in platform proposals to determine the future development direction of Balance. Proposals may include adjustments to the economic model, the launch of new features, optimization of token incentive schemes, etc., to ensure that the entire ecosystem is led by the community rather than controlled by a centralized mechanism.
4. On-chain transactions and NFT ecology : EPT is used as the gas fee of the Balance chain and is also used for NFT transactions, decentralized identity (DID) verification and other applications. This means that every AI interaction, transaction or upgrade is inseparable from EPT, making it an indispensable foundation in the Balance ecology.
The synergy between Key Node and EPT tokens enables Balance to further build a complete Web3 interactive ecosystem outside the AI protocol framework economic system, where users, AI agents and developers can find their own roles, create value through participation, and enjoy the economic growth dividend brought by Web3.
Conclusion: How does Balance shape the future of AI+Web3?
Balance has created a new interactive entertainment model through the deep integration of the AI protocol framework and the Web3 economic system. The AI Agent based on its AI protocol framework is no longer just a simple chatbot, but an intelligent entity with learning ability, economic attributes, and the ability to establish long-term interactions with users.
In the future, Balance plans to launch EPT tokens in Q1 2025 and list them on centralized exchanges. At the same time, it will launch a token issuance system for AI Agents with certain strict selection standards, such as more than 10,000 interactive chats, etc. During Q2-Q3, the platform will launch the Balance ID system and further optimize the intelligent capabilities of AI Agents.
The future of AI+Web3 interactive entertainment is gradually taking shape under the impetus of Balance. With the advancement of decentralized AI technology, the improvement of the on-chain economic system, and the deep integration with AI interaction, Balance is building a truly intelligent, decentralized, and sustainable interactive economic ecosystem. This ecosystem will not only reshape the AI interaction model, but will also become a major innovation of the AI economic system in the Web3 era, bringing new opportunities and value growth points to users and developers.
