AgentFi Incentives

Purpose of Emission Rewards

The protocol allocates emission rewards to incentivize the creation and support of high-quality, productive agents.

• Competition Encouragement: By rewarding the top agent pools, the protocol fosters competition among creators and communities to develop superior agents.

• Quality and Productivity: Incentivizing the best agents ensures that users have access to efficient and valuable AI services.

Protocol Emission to Top 3 Liquidity Pools by TVL

Mechanism of Emission

• Emission Allocation:

  • Emissions are allocated to liquidity providers of agent tokens.

  • The allocation is weighted based on the size of the liquidity pool.

• Eligibility:

  • Only the top three agent liquidity pools receive emissions.

  • The possibility to include more pools can be decided through governance mechanisms.

• Emission Schedule:

  • The proposed emission for the first 12 months is 60,000,000 $VIRTUAL tokens, per governance proposal here.

• Distribution to Liquidity Providers:

  • Rewards are distributed proportionally to liquidity providers within the eligible pools.

  • This incentivizes participants to provide liquidity to the most successful agents.

Benefits of the Emission Mechanism

• Enhanced Liquidity: Encourages more liquidity in top agent pools, improving market efficiency.

• Agent Improvement: Motivates creators to continuously improve their agents to remain competitive.

• Ecosystem Growth: Drives the overall growth and robustness of the Virtuals Protocol.