By democratizing agentic AI, the challenge is sparking new use instances and crypto alternatives
Think about making a money-generating AI agent after which confidently setting it unfastened with out writing a single line of code. That’s the premise behind Virtuals Protocol. The Ethereum L2 challenge makes it potential to construct AI brokers with distributed possession after which run them in permissionless environments.
Three months after its debut, the worth of Digital’s VIRTUAL governance token rocketed skyward, surging by 23,000% to $4.61 as builders rushed to check use instances and crypto merchants waded in behind.
As of late March 2025, markets had introduced it again to Earth — although at $0.78 it was nonetheless up 3,800% from launch day. From that grounded footing the challenge has respiratory house to attain its aims: to remodel gaming, media, and extra.
Launched final October on the Ethereum Layer 2 Base, Virtuals’ progressive use of blockchain expertise permits AI brokers to be tokenized. Meaning their possession might be shared and decentralized, then put to work in open, permissionless environments.
The challenge’s white paper calls Virtuals “a society of productive AI brokers, every designed to generate companies or merchandise and autonomously have interaction in commerce — both with people or different brokers — onchain.”
What units it other than different agentic AI performs is the concentrate on democratisation. As a substitute of surrendering AI to Huge Tech, Virtuals offers particular person builders and smaller corporations the ability to create autonomous brokers able to speaking by textual content, speech, and animation whereas participating dynamically with their digital environment.
In a press release on the corporate web site, Virtuals Protocol mentioned it goals to create “a brand new financial mannequin the place AI brokers should not simply instruments — they’re community-owned property that symbolize a mix of profit-driven incentives and decentralized governance.”
An AI agent constructed on the platform might, for instance, serve a twin position inside a gaming ecosystem like Roblox. In some video games, it could possibly be a digital influencer. In others, it could possibly be an interactive character. The agent/character/influencer would retain the reminiscence of its interactions, selling deeper engagement throughout video games and use instances.
On Virtuals, an AI agent’s possession is represented by its token. When an AI agent is created on Virtuals, 1 billion tokens linked to that agent are minted after which added to a liquidity pool for customers to purchase.
In a way, proudly owning an agent token is like proudly owning inventory in an organization. Every token represents a consumer’s possession share in that agent.
As extra individuals work together with AI brokers and pay for his or her service, worth accrues to the token by a buyback-and-burn mechanism.
The protocol presently operates on Ethereum (ETH) and Base. Plans are underway to convey it Solana, doubtlessly this yr.
Staking VIRTUAL token: A developer has to lock up a certain amount of VIRTUAL token to launch an AI agent on the platform.Agent creation: A developer launches an AI agent on the Virtuals platform.Token technology occasion: One billion tokens (for instance, $AGENT) associated to the newly created AI agent are minted.Liquidity pool creation: $AGENT tokens are paired with VIRTUAL tokens to create a liquidity pool.Open market launch: Crypto customers purchase $AGENT tokens from the liquidity pool.Income technology: Because the AI agent grows in recognition, it earns income from gross sales of its companies. A part of the income covers the price of AI inference companies, and a portion is distributed to the AI agent’s on-chain treasury to cowl future development and operational prices.Buyback and burn: As income accumulates within the agent’s treasury, a buyback-and-burn mechanism purchases $AGENT tokens from the open market and burns them. The decreased provide drives up the worth of the remaining $AGENT tokens.Token holder advantages: $AGENT holders see the worth of their holdings enhance pushed by token shortage and income inflows.
VIRTUAL has a most provide of 1 billion tokens. The circulating provide as of January 27, 2025, was 645.68 million VIRTUAL tokens, or 64.56% of the max provide. Here’s a breakdown of its allocation:
Because the native token of the protocol, VIRTUAL is used for:
Liquidity pairing: Each AI agent token launched on Virtuals is paired with a VIRTUAL token.Agent creation: Builders are required to lock up a specific amount of VIRTUAL tokens to turn out to be eligible to launch an AI agent on the platform.Funds: Customers pay for AI agent companies utilizing the VIRTUAL token.VIRTUAL was created on December 23, 2023On January 2nd, 2025, the token’s value had risen 23,000% to $4.61
As of January 27, 2025, over 600 AI brokers had been deployed on the Virtuals Protocol. Aixbt (AIXBT) was essentially the most invaluable AI agent in motion, with a market cap of over $618.5 million, whereas GAME (GAME) had the very best complete worth locked (TVL) at about $18.5 million.
1. aixbt
Crypto analytics software aixbt tracks crypto-related discussions on X (Twitter), engages in discussions, detects upcoming market traits, and highlights crypto alpha.
aixbt frequently tweets its crypto theses. Nevertheless, to make use of the total capabilities of the aixbt AI agent, customers should maintain a minimal of 600,000 AIXBT tokens, making them eligible to make use of the aixbt terminal.
The AI agent is extremely widespread on X and has amassed over 400,000 followers inside three months, prompting crypto analysis agency Messari to call it the “X Account of the 12 months” in 2024.
As of January 27, 2025, the AIXBT token was essentially the most invaluable cryptocurrency within the decentralized finance synthetic intelligence (DeFAI) sector, knowledge on CoinMarketCap confirmed. General, it was the One hundred and twenty fifth-largest token on the planet by market capitalization.
2. GAME
Generative Autonomous Multimodal Entities (GAME) is a platform that permits builders to create AI brokers and purposes that may plan actions and make choices autonomously. It will also be used to create AI brokers to work together in digital worlds resembling Roblox and Sandbox (SAND).
In accordance with Virtuals, GAME creates AI brokers which are environment- and game-agnostic. Chatbots and non-player characters (NPC) created with GAME have the power to carry “genuine and utterly unscripted dialog.”
“With chain-of-thought-based prompting strategies for planning and reasoning together with software use, our brokers can plan, act, and obtain targets that affect and have an effect on the world,” mentioned Virtuals.
As of January 27, 2025, $GAME had a market cap of $119.2 million, making it the three,051st largest crypto, based on CoinMarketCap.
Plans are actually within the works to implement a governance mechanism that palms liquidity suppliers and validators of a given AI agent token the ability to approve AI fashions and set high quality requirements.
If it catches on, blockchain-based agentic AI might turn out to be a mechanism for guaranteeing accountable AI improvement — and mitigating the expertise’s dangers.
