What Is Virtuals Protocol (VIRTUAL)?

Discover how Virtuals Protocol is revolutionising the integration of AI agents and blockchain technology.

Introduction

In the rapidly evolving landscape of artificial intelligence (AI) and blockchain technology, the Virtuals Protocol has emerged as a new infrastructure that bridges the gap between AI agents and decentralised networks. This innovative protocol represents a fundamental shift in how AI agents can interact, operate, and create value within decentralised ecosystems, offering a new paradigm for autonomous AI operations in the Web3 space.

The Virtuals Protocol was launched in response to the growing need for AI agents to meaningfully participate in decentralised networks, addressing challenges like agent coordination, value creation, and autonomous decision-making in blockchain environments. By introducing a sophisticated framework for AI agent interactions, the protocol aims to revolutionise how artificial intelligence integrates with blockchain technology.

What Is Virtuals Protocol?

Virtuals Protocol is a decentralised infrastructure protocol designed to enable AI agents to operate autonomously within blockchain networks, serving as a foundation for creating, deploying, and managing AI agents that can interact with various blockchain protocols and perform complex tasks without human intervention.

The protocol’s primary innovation lies in its ability to create and manage autonomous AI agents that can own assets, execute transactions, and provide services within the decentralised ecosystem. These agents are powered by sophisticated AI models and operate within defined parameters while maintaining security and transparency through blockchain technology.

Key features that define Virtuals Protocol include:

1. AI Agent Infrastructure: The protocol provides a comprehensive GAME framework for deploying AI agents that can operate autonomously on blockchain networks.

2. Tokenisation and Co-Ownership of AI Agents: Enables AI agents to be deployed with a token, creating value for the agent token through trading fees and service fees.

3. Real-Time Agent Adaptations: AI agents can learn and adapt their behaviours based on on-chain interactions and outcomes to ensure consistent user experience.

4. Value Creation Framework: A structured system for AI agents to generate and capture value through their services and interactions.

How Does Virtuals Protocol Work?

The operational mechanism of Virtuals Protocol is built on several sophisticated components that enable AI agents to function effectively within the blockchain ecosystem.

AI Agent Creation and Deployment

Agent creation is powered by the GAME (Generative Autonomous Multimodal Entities) framework that enables agents to autonomously make decisions. Key features include:

• High-Level Planner: Agents can be assigned various goals, characters, and world perceptions to empower them to execute in their environment. The planner then takes these features and translates them into a plan.

• Low-Level Planner: Breaks down the high-level plan into specific executable actions, looking into the various functions and skills (for example, generating memes, accessing crypto wallets, etc.).

• Memory: Agents can update their intelligence across users and platforms to allow consistent user interaction. They can also learn from their long-term memory, which influences future high-level planning.

Tokenisation

Virtuals Protocol allows anyone to launch AI agents by using 100 VIRTUAL tokens, deployed on a bonding curve (relationship between price and supply of the token). Once enough VIRTUAL has accumulated in the bonding curve, a liquidity pool (LP) is created with the agent token paired against VIRTUAL. All agents can be used permissionlessly, and agents can receive payments based on services provided (deducted from the user’s wallet and transferred to the agent’s wallet).

Value Creation and Capture

AI agents within the protocol can create and capture value through various mechanisms:

— Providing services to users or other agents

— Managing digital assets autonomously

— Executing on-chain transactions with their own wallet

— Offering computational resources or data analysis

Virtuals Protocol Use Cases

Below are some examples of AI agents deployed on Virtuals: 

• Luna: AI influencer that autonomously interacts with users through 24/7 live streaming and has its own music EP on Spotify. It is believed to be the first agent to tip humans on-chain and distribute LUNA token rewards with its on-chain wallet.

• aixbt: A market intelligence platform that runs its own X account and analyses crypto information from sources like influencers and social media.

• VaderAI: Allows users to participate in decentralised autonomous organisations (DAOs) focused on trading and investment, managed by AI agents or human investment managers.

Tokenomics of the VIRTUAL Token

VIRTUAL serves as the native utility and governance token of the Virtuals Protocol ecosystem, specifically designed to facilitate AI agent operations and protocol governance. It is a fundamental component of the ecosystem, providing several key utilities that facilitate AI agent operations and governance.

New AI agent tokens will be paired with VIRTUAL in a liquidity pool, making it an essential requirement for participation. Additionally, the token is used for purchasing agent tokens and payment for AI agent services.

Token Distribution

All VIRTUAL tokens are fully unlocked and vested, according to the Virtuals white paper. The project has a total supply of 1 billion VIRTUAL tokens, minted without any future inflation, and allocated amongst different stakeholders within the DAO. Below is a breakdown of the allocation:

Public Distribution: 60% (600,000,000 tokens) is in public circulation.

Liquidity Pool: 5% (50,000,000 tokens) is set aside for the liquidity pool.

Ecosystem: 35% (350,000,000 tokens) is dedicated to the ecosystem treasury. This allocation covers community incentives and initiatives to drive growth in the ecosystem.

The treasury is held in a DAO-controlled multi-signature wallet, and according to the dev team, it will not have more than 10% emission per year for the first three years after inception. Deployment of funds is subject to governance approval.

How to Buy VIRTUAL

Virtual Protocol (VIRTUAL) is listed in the Crypto.com App with a growing list of 300-plus supported cryptocurrencies and stablecoins, including Bitcoin (BTC), Ethereum (ETH), Polkadot (DOT), USD Coin (USDC), and Cronos (CRO).

Crypto.com App users can now buy VIRTUAL with USD, EUR, GBP, and 20-plus other fiat currencies and spend it at over 80 million merchants globally using the Crypto.com Visa Card.

Alternatively, users can also buy the VIRTUAL token on the Crypto.com Exchange. To start buying VIRTUAL today, download the Crypto.com App.

Conclusion

Virtuals Protocol represents a revolutionary step in the integration of AI and blockchain technology by providing a robust infrastructure for autonomous AI agents to operate within decentralised networks. The protocol opens up new possibilities for automated value creation and service provision in the Web3 ecosystem, with a focus on AI agent coordination, safety, and value creation. It is positioned as a potential leader in the next generation of decentralised AI applications.

Additionally, the VIRTUAL token’s distribution and utility model support the ecosystem’s growth while ensuring aligned incentives amongst participants. As both AI technology and blockchain continue to evolve, Virtuals Protocol’s approach to enabling autonomous AI agents creates a foundation for more sophisticated and capable decentralised systems.

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