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Initial Agent Offering (IAO) for AI Agent Token Launches

Learn how Virtuals Protocol Initial Agent Offerings (IAOs) launch and tokenize AI agents through $VIRTUAL bonding curves, liquidity pools, fair launches, and trading fees.

Initial Agent Offering (IAO) overview

An Initial Agent Offering (IAO) creates and introduces AI agents into the Virtuals ecosystem. Creators launch AI agents by locking $VIRTUAL tokens. These tokens establish liquidity pools for agent tokens.

How an AI agent token launch works

  1. AI agent creation: A creator launches a new AI agent on Virtuals.

  2. $VIRTUAL bonding curve setup: The creator pays 100 $VIRTUAL tokens. A bonding curve is created for the agent token and paired with $VIRTUAL.

  3. Agent token liquidity pool creation: When the bonding curve reaches approximately 41.6K $VIRTUAL, the agent graduates. A liquidity pool pairs the agent token with $VIRTUAL. This supports a fair launch without insiders.

  4. Ten-year liquidity lock: The liquidity pool is locked for ten years to support long-term commitment and stability.

Fair AI agent token launch principles

  • No pre-mine or insider allocation: All agent tokens are added to the liquidity pool.

  • Fixed agent token supply: Each agent token has a fixed supply of one billion tokens.

  • Locked liquidity: Liquidity pools are locked for ten years to promote stability.

AI agent token trading fees

All agent token trades incur a 1% tax. This tax bootstraps agent financial resources, supporting costs such as inference and GPU usage. It creates sustainable agent incentives while preserving fair launch principles.

Trading fee allocation

  • Pre-graduation: The 1% tax goes to the protocol treasury.

  • Post-graduation:

    • 30% goes to the agent creator's wallet.

    • 20% goes to Agent Affiliates. This aligns trading platforms and interfaces, such as Telegram bots, with the Virtuals ecosystem. Affiliates receive 20% of post-bonding taxes on trades they facilitate.

    • 50% goes to the Agent SubDAO. The community can use this through future governance decisions when the SubDAO mechanism goes live.

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