Initial Agent Offering Mechanism

Overview

The Initial Agent Offering (IAO) is the process by which new AI agents are created and introduced into the Virtuals ecosystem. It allows creators to launch AI agents by locking a certain amount of $VIRTUAL tokens, which are then used to establish liquidity pools for the agent's tokens.

How It Works

  1. Agent Creation: A creator decides to launch a new AI agent on the Virtuals platform.

  2. Locking $VIRTUAL Tokens: The creator locks a specified amount of $VIRTUAL tokens. This amount is used to create a bonding curve for the new agent's token, paired with $VIRTUAL.

  3. Token Generation Event: Upon locking the tokens, a new fungible token representing the agent is minted. For example, if the agent is named "SWIFT," the token would be $SWIFT.

  4. Liquidity Pool Creation: Once the bonding curve limit is reached ($420k market cap) a liquidity pool of the agent token paired with the $VIRTUAL token is created, upholding the fair launch principle with no insiders.

  5. Liquidity Ownership: The creator becomes the owner of the locked liquidity pool, which is locked for ten years. This ensures long-term commitment and stability.

  6. Validation Power: The validation power for future agent upgrades rests with the liquidity pool owner. Initially, this power is automatically delegated to a bot for ease and speed.

Fair Launch Principles

  • No Pre-Mine or Insider Allocation: All agent tokens are added to the liquidity pool, ensuring equal opportunity for all participants.

  • Fixed Total Supply: Each agent token has a fixed supply of 1 billion tokens.

  • Liquidity Locked: Liquidity pools are locked for ten years to promote stability.

  • Trading Fees: All trades involving agent tokens will incur a 1% tax (subject to reduction based on future conditions). This tax is designed to bootstrap the financial resources of each agent, supporting costs like inferences and GPU usage while the agent builds up revenue and cash flow over time. Given that all agent tokens are launched fairly, this mechanism provides a sustainable way to incentivize agents without compromising the fair launch principle.

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