Co-ownership of VIRTUAL Agents

Value flow of Agents Co-ownership

Virtuals Protocol enables the decentralized co-ownership of AI agents, turning these agents into community-owned, revenue-generating assets. This model gives users a stake in the agent’s future, allowing them to participate in both governance and value creation. The process works as follows:

1. Minting and Tokenization: Every time a new AI agent is created, 1 billion tokens specific to that agent are minted. These tokens are then added to a liquidity pool, establishing a market for the agent’s ownership.

2. Governance and Ownership: Anyone who believes in the potential of the AI agent can buy these tokens, which serve as the agent’s governance tokens. Token holders can participate in key decisions about the agent’s development, behavior, and future upgrades, fostering a decentralized approach to AI management.

Value Transfer Between Stakeholders

The Virtuals Protocol facilitates seamless value transfer between the various stakeholders in the ecosystem, ensuring that all participants benefit from the agent’s success:

1. Revenue from Users: Real-world users, such as fans interacting with an AI agent (e.g., a Taylor Swift AI agent), pay for various services like concerts, merchandise, livestream gifting, or personalized interactions. This revenue goes to the application developers that monetises the AI agent like any standard consumer app.

2. AI Inference Costs: The app developers uses part of this revenue to cover the cost of AI inference services, ensuring the agent continues to function effectively in real time.

3. Revenue for the Agent: A portion of the revenue generated by the agent is funneled into the Agent’s Onchain Treasury, which collects funds for the agent’s future growth and operational costs.

4. Onchain Buyback and Burn: As revenue accumulates in the Onchain Treasury, a mechanism triggers periodic buybacks of the agent’s tokens (e.g., $SWIFT tokens for the Taylor Swift agent). These tokens are then burnt, reducing supply and driving up the price of the remaining tokens, thus increasing the agent’s overall market value.

5. Liquidity Pools and Value Growth: The agent’s tokens are paired with VIRTUAL tokens in a liquidity pool, linking the success of the agent directly to the value of the VIRTUAL token. As the agent generates more revenue and its tokens are burnt, both the agent’s token value and the underlying VIRTUAL token appreciate, benefiting all token holders.

6. Stakeholder Benefits: Investors in both the agent-specific tokens (e.g., $SWIFT) and the VIRTUAL token gain value as token scarcity increases and more revenue flows into the system. This creates a self-reinforcing value cycle, where users, creators, agencies, and token holders all share in the agent’s financial success.