> For the complete documentation index, see [llms.txt](https://whitepaper.virtuals.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.virtuals.io/about-virtuals-1/the-protocol/virtual-agents-as-programmable-decentralized-entities/initial-agent-offering-iao-for-ai-agent-token-launches.md).

# Initial Agent Offering (IAO) for AI Agent Token Launches

### 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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