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Detailed Summary
Artificial Intelligence (AI) has continued to disrupt many industries, and the entertainment niche hasn’t been left behind. AI agents — autonomous characters designed to perform certain tasks without human intervention — have become increasingly popular due to their efficiency, which improves productivity and cuts costs.
In the blockchain space, we've seen AI agents being introduced in areas such as gaming (e.g., OKZOO, an AI-powered casual game platform; relationships (for example, AI Companions and Sleepless AI); and even DeFi (via intent-based systems like Aperture Finance).
In line with the potential that AI agents hold, Virtuals Protocol has created a platform that lets people create and own AI agents. It basically decentralizes AI agents, turning them into community-owned assets that can generate revenue.
Let’s learn more.
Key Takeaways:
Virtuals Protocol is a platform on Base that allows the creation and deployment of co-owned AI agents that can generate revenue.
With Virtuals Protocol, developers and users can collaborate to create AI assets in a blockchain-powered structure.
Its native token, VIRTUAL, is available as a Spot pair (VIRTUAL/USDT) and Perpetual contract (VIRTUALUSDT) on Bybit.
What Is Virtuals Protocol?
Virtuals Protocol is a platform on Base that’s designed to allow anyone to create an AI agent, a virtual character that can interact and engage with its environment in a similar way that human beings do.
The creators of Virtuals Protocol believe that the $100 billion AI market remains hugely untapped, especially in the entertainment and gaming niche. With that in mind, the team aims to offer a platform chartering a new path in the decentralized co-ownership of AI-powered tokens that can bring real value to users.
AI agents on Virtuals Protocol can move and speak in 3D spaces, make on-chain transactions, learn, make decisions and interact “virtually” with their environment. There are two primary types of agents in Virtuals Protocol: IP agents and functional agents. IP agents represent specific personalities, with one of the original IP agents on the platform known as Luna, who has over 500,000 followers on TikTok.
On the other hand, functional agents are designed to enhance user experience by enabling a seamless interaction with the virtual world. An excellent example of a functional agent on Virtuals is G.A.M.E (Generative Autonomous Multimodal Entities), a framework that allows developers to access and experiment with AI agents via APIs and SDKs.
In short, while IP Agents such as Luna focus on delivering personalized and engaging interactions as distinct characters, functional agents in the form of G.A.M.E. provide the underlying frameworks and tools that facilitate the creation, integration and operation of these AI agents within various applications and virtual environments.
The native token of Virtuals Protocol, VIRTUAL, is designed to facilitate the on-chain agent economy on the platform.
How Does Virtuals Protocol Work?
Virtuals Protocol leverages blockchain technology to create an ecosystem that allows co-ownership and deployment of AI agents in the gaming and entertainment sectors. Its platform is structured to allow all interactions to be recorded transparently and stored securely in order to enhance the development of AI agents. Virtuals Protocol follows the architecture below.
Modular Consensus Framework
At the core of Virtuals Protocol lies the Modular Consensus Framework, which standardizes and streamlines interactions among various stakeholders.
Contributors: These are individuals or entities who submit proposals to enhance AI agents by providing models, datasets or intellectual property. Each submission generates a Contribution NFT, serving as proof of the proposal's origin.
Validators: These participants are responsible for assessing and approving contributions. They utilize a delegated proof of stake (DPoS) mechanism, whereby token holders delegate their tokens to qualified validators who finalize the state of each agent.
Interaction Between Contributors and Validators
The collaboration between Contributors and Validators is pivotal to the protocol's functionality.
Submission — Contributors propose enhancements to AI agents, such as new models or datasets.
Validation — Validators assess these proposals to ensure they meet the protocol's standards and align with the agents’ objectives.
Approval — Upon approval, the contribution is minted as a Service NFT and integrated into the agent's Immutable Contribution Vault (ICV).
Reward Distribution — Contributors receive rewards proportional to the value and impact of their approved contributions.
Immutable Contribution Vault (ICV)
The ICV is a protocol-owned vault that archives all historically approved contributions of VIRTUAL agents on-chain to ensure transparency, composability and proper attribution of contributions.
Multilayered Structure of the ICV
The ICV comprises several layers.
Smart Contract Wallet Ownership (ICV): The foundational layer is a smart contract wallet known as ICV, which manages all subsequent layers.
Individual VIRTUAL Agent as ERC-6551 NFTs: Each VIRTUAL agent is created as an ERC-6551 NFT, which also serves as a unique wallet address. This duality in design seamlessly merges personal identity and transaction elements in the Virtuals ecosystem.
Core Components of VIRTUAL Agents: Cognitive, voice and visual cores are stored beneath each VIRTUAL agent and registered in the smart contract.
Service NFTs Within Each Core: Within each VIRTUAL agent, approved contributions are stored as Service NFTs, and the relationship between these Service NFTs and the Core is registered through a smart contract.
Creating AI Agents With Virtuals Protocol
Anyone can create their own AI agents on Virtuals Protocol.
Agent Creation Process
The creation of an AI agent encompasses both on-chain and off-chain operations. First, you’ll need to submit an agent creation form that defines the agent’s identity by filling in crucial details, such as the profile picture, name, ticker symbol and description. You can also further customize the agent with optional details, such as social media links.
Next, you’ll need 10 VIRTUAL tokens to create the agent, which will be deployed on a bonding curve. Users can buy and sell the agent tokens along this curve. Once the agent token reaches a market cap of $420,000, a liquidity pool is established on Uniswap, and the agent becomes visible on the platform.
After the bonding process, you can opt to delegate your voting power to facilitate decentralized governance on the platform. Your delegated voting power allows you to participate in the contribution validation process, thereby ensuring that changes made to an agent’s AI model or behavior are approved by the community.
Agent Deployment
Once an AI agent has been created, it undergoes deployment. This process involves AI model selection, whereby the system defaults to a predefined cognitive model that can be customized later. Next is the preparation of the character card and AI model, which are critical for the agent's cognitive core.
Contribution NFTs are then minted, initiating the agent's operational capabilities. The AI model is then deployed into the Agent Runner, a specialized environment designed to run the agent's cognitive, voice and visual cores.
Initial Agent Offering (IAO)
Creating AI agents within Virtuals Protocol involves a structured process known as the Initial Agent Offering (IAO), a mechanism that enables users to develop, deploy and co-own AI agents, transforming them into community-driven, revenue-generating assets.
The IAO is the foundational step for introducing new AI agents 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 governance tokens. These liquidity pools are locked for 10 years to encourage long-term token stability.
Virtuals Protocol Ecosystem
The Virtuals Protocol ecosystem encompasses a range of AI-driven applications designed to enhance user engagement across various platforms and virtual worlds. Following is an overview of each.
AiDOL
AiDOL is pioneering the development of fully AI-driven live-streaming agents, focusing on platforms like TikTok. Unlike traditional VTubers who rely on human performers, AiDOL utilizes advanced AI technologies to create virtual idols capable of forming personalized connections with fans. The first virtual creation on AiDOL is an AI band whose lead singer, Luna, has over 500,000 followers on TikTok.
Roblox Westworld
Roblox Westworld is an interactive simulation within a popular Web 2.0 game, Roblox, featuring autonomous agents powered by the GAME framework. Inspired by the concept of AI androids in a Wild West setting, players are tasked with identifying and capturing a hidden villain ("The Bandit”). The simulation includes ten agents, each with unique personalities and goals and capable of strategizing and interacting autonomously. This setup leads to diverse storylines and outcomes, enhancing replayability with minimal repetition across playthroughs.
AI Waifu
AI Waifu is a web-based application offering over 300 AI characters and fantasies created by the community. Users can enjoy a personalized and interactive experience by engaging in role-playing scenarios, customizing voices, and creating manga. This platform caters to users seeking companionship and creative expression through AI-driven interactions.
The Heist
The Heist is an upcoming interactive game on Telegram, showcasing the capabilities of VIRTUAL Agents in managing on-chain transactions within a game where economy matters. Players can engage with autonomous agents, convincing them to perform tasks and witnessing the agents' decision-making processes in real time.
Sanctum
Sanctum is a 3D AI-RPG (role-playing game) on Telegram that integrates AI agents to create immersive and interactive storytelling experiences. Players can engage with AI-driven characters, explore narratives and influence story outcomes through their interactions.
What Is the Virtuals Protocol Token (VIRTUAL)?
VIRTUAL is the native token for the Virtuals Protocol ecosystem. A utility token, it’s designed to facilitate and incentivize interactions within the AI-driven platform. Its core functions are as follows:
Agent creation and ownership: To develop and deploy new AI agents, users are required to lock a certain amount of VIRTUAL tokens.
Medium of exchange: VIRTUAL tokens are utilized for on-chain payments within the ecosystem.
Revenue sharing: Contributors who enhance AI agents by providing models, datasets or other assets are rewarded in VIRTUAL tokens.
VIRTUAL has a finite total supply of 1 billion tokens, distributed as follows:
Where to Buy VIRTUAL
You can buy VIRTUAL on Bybit as a Spot pair (VIRTUAL/USDT), or as a Perpetual contract (VIRTUALUSDT) with leverage of 12.5X.
Virtuals Protocol (VIRTUAL) Price Prediction
As of Nov 28, 2024, the VIRTUAL token’s price is at $0.8647, just 6.9% lower than its all-time high recorded the day before at $0.9381, and over 11,000% higher than its all-time low of $0.007486 on Jan 23, 2024.
Price prediction experts are bullish on the future price of VIRTUAL. According to price forecasting experts at DigitalCoinPrice, VIRTUAL could hit a maximum price of $2.26 in 2025 and increase to $6.51 by 2030. Another price prediction platform, CoinCodex, believes that VIRTUAL may hit $4.15 by 2025, but decline slightly to $3.30 by 2030.
While these price predictions are bullish, they don’t guarantee the future price of VIRTUAL. They aren’t financial advice. We highly recommend you do your own research before investing in VIRTUAL or any other cryptocurrencies.
Closing Thoughts
As AI continues to disrupt the web3 space, a project such as Virtuals Protocol is strategically placed to provide users with a platform to create AI agents. With its innovative approach to community ownership of AI agents, crypto enthusiasts can tap into the platform to generate revenue. Virtuals Protocol is definitely a project to watch as it continues to pioneer innovative applications in the fast-growing multibillion AI industry.
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