Protocol treasury

The Protocol treasury holds all non-contribution assets for the development of the ecosystem. It enables programmable value flow within the protocol, with the following implications:

  1. Automated Financial Transactions: The programmable nature of on-chain value flow eliminates the human element in financial transactions within the ecosystem. This automation not only streamlines processes but also significantly reduces risks associated with manual handling, such as errors, biases, and bad debts. Accuracy and fairness are inherent in these transactions, cultivating a trustworthy and reliable system.

  2. Transparent Incentives Attribution: The use of smart contracts in the Virtual Protocol ensures a transparent and predictable incentive system. Contributors and stakeholders can understand the rewards they are entitled to upon achieving predefined milestones. This clarity in incentive structures not only motivates participation but also minimizes disputes over compensation.

  3. Permissionless Interaction with VIRTUALs: The on-chain value flow model supports permissionless usage of VIRTUAL, allowing users and developers to engage with these agents without centralized approval. This open-access approach spurs innovation and wider participation, thereby enriching the ecosystem's growth and diversity.

Stakeholders in on-chain value flow

  1. Protocol Treasury: Receives $VIRTUAL payments from DApps for utilization of VIRTUALs and allocates $VIRTUAL tokens to contributors, validators, and delegators.

  2. IP Contributors: License their intellectual property and its content for use.

  3. Contributors: Offer data or AI models to VIRTUALs and are recognized with $VIRTUAL tokens.

  4. Validators: Validate contributions, determine the latest state of VIRTUALs, and are compensated in $VIRTUAL tokens.

  5. Delegators: Token holders opting for passive involvement delegate their tokens to validators, earning yields after fees.

  6. Decentralized Applications (DApps): Utilize VIRTUALs within their applications, compensating with $VIRTUAL tokens.

See the flywheel below for illustration:

pageThe Virtual-ous Flywheel

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