# Virtuals Launch Mechanics

### How It Works

### 1. [Creation](https://app.virtuals.io/create) Phase

Founders initiate a launch by creating their agent on the Virtuals platform at no cost. Certain modules carry an activation fee: Launch Radar (100 $VIRTUAL) and Capital Formation (10 $VIRTUAL). All other modules are free.

During creation, founders configure their launch by toggling modules on or off. Each module is independent. No module requires another module to function.

Once created, an Agent Launch Page is published instantly on the Virtuals Protocol platform, displaying:

* Token supply and distribution parameters
* Active modules and their configurations
* Founding team details
* Product details and agent information

***

### 2. Launch and Early Trading

Once the agent is created, trading opens automatically.

Anyone can trade directly through the Virtuals Protocol platform. There are no presales, whitelists, or gated allocations.

#### **Sniper Tax Mechanism** 

**If Anti-Sniper Protection is activated:**

* The buy-side tax starts at 99% and decays to 1% across the founder's chosen window (configurable from 0 seconds to 98 minutes), until reaching the 1% baseline trading tax. The sell-side tax remains fixed at 1% throughout.
* All sniper taxes collected during this window are automatically used to buy back agent tokens onchain.
* The repurchased tokens are distributed to the team wallet, following a 3-month cliff and 9-month linear vesting schedule.

This structure protects early liquidity from bots and opportunistic snipers while converting initial volatility into long-term alignment for project founders.

If Anti-Sniper Protection is not activated, trading tax is fixed at 1% from launch.

#### **Sniper Tax Mechanism General FAQ**

<details>

<summary>Does the sniper-tax buyback begin immediately after the tax drops to 1%?</summary>

Buybacks start automatically as soon as the configured protection window ends and the buy-side tax reaches the baseline 1%.

</details>

<details>

<summary>Is the collected sniper tax used in a single buy or over time?</summary>

Buybacks are executed gradually over a 24-hour period.

</details>

***

### 3. Launch Life Cycle

The creator deploys the agent and initializes its bonding curve. The token becomes immediately tradable on the Virtuals platform. A 1% trading fee applies from day one:

* 70% distributed to the agent creator
* 30% to Virtuals Treasury

For launches using the 60 Days module, the founder's 70% share is locked during the trial period and released only after commitment. If the founder does not commit, this allocation is redirected to the refund pool.

***

### 4. Liquidity Model

As trading continues, the bonding curve automatically accumulates $VIRTUAL liquidity.

Once total liquidity reaches 42,000 $VIRTUAL, a liquidity pool is automatically created and paired with the agent token on Uniswap V2.

After the pool is established, users can trade the token directly on the Virtuals platform, or through any supported DEX, aggregator, or trading bot integrated with the protocol.

This ensures:

* Continuous, verifiable onchain liquidity growth
* Seamless transition from bonding curve to open market
* Full compatibility across all supported trading environments

{% hint style="success" %}
All liquidity pool (LP) tokens generated during agent graduation are automatically staked under a long-term lock of ten (10) years. The purpose of this mechanism is to guarantee liquidity permanence, remove ambiguity around post-launch liquidity control, and ensure that all agents launched through Virtuals operate with long-term, non-extractable liquidity guarantees.
{% endhint %}