Virtuals Protocol: Create an on-chain AI Agent in three minutes

1. Project Overview

Virtuals Protocol is an AI Agent generation platform based on blockchain technology, established in 2021. The project aims to enable users to create virtual characters that can interact with their environment, transforming the way virtual interactions are experienced through personalization and immersive experiences.

The project officially launched in 2023, with the core goal of achieving decentralized co-ownership of AI agents through blockchain technology, promoting the widespread application of AI in fields such as gaming, entertainment, and the metaverse. The AI agents of the Virtuals Protocol possess multimodal interaction capabilities, including text, voice, and 3D animation, and can seamlessly operate across multiple platforms, such as Roblox, TikTok, and Telegram games.

2. Development History

2021: The project predecessor PathDAO was established, focusing on gaming guilds and GameFi investments.

2023: PathDAO transformed into Virtuals Protocol, focusing on the integration of AI and blockchain, and deploying smart contracts on the Base链.

2024: Launch of the first AI Agent Luna, gaining over 500,000 followers on TikTok. Currently, more than 1,000 AI Agents have been created on the platform.

By the end of 2024: Listed on multiple exchanges, the token $VIRTUAL's market value skyrocketed from tens of millions of dollars to over $3 billion within two months.

3. Core Team

The team of Virtuals Protocol consists of a group of young individuals with experience in consulting, blockchain, AI, and gaming. Core members include:

• Jansen Teng: Co-founder and CEO, graduated from Imperial College London, previously worked at Boston Consulting Group.
• Wee Kee: Co-founder, Bachelor's degree from Imperial College London, Master's degree from London Business School, previously worked at BCG Consulting.

Other team members are mainly from the Southeast Asia region, with backgrounds from prestigious universities such as the University of Cambridge and Imperial College, and have work experience at well-known companies like Accenture, Grab, and Shopee.

4. Business Model

Virtuals Protocol adopts a decentralized operational model, using blockchain as its underlying infrastructure. Users can create AI agents through the platform and pay different fees based on complexity. For example, creating a basic function agent may require 10 VIRTUAL, while a high-function agent may require 100 VIRTUAL.

The platform encourages developers to create derivative applications based on the Virtuals Protocol, adopting revenue-sharing and other cooperation methods for high-quality applications. Currently, there are about 20 different types of derivative applications being developed or in trial operation on the platform.

5. Ecosystem

The ecosystem of Virtuals Protocol includes the following layers:

1. Protocol layer: Provides AI models and algorithms to support developers in creating and deploying AI agents.
2. DApp Layer: Allows decentralized applications to integrate AI agent functionalities, such as game NPCs and social media virtual influencers.
3. Contributor Network: Data contributors, validators, and developers earn $VIRTUAL rewards through their contributions.

6. Token Economics

$VIRTUAL is the core token of the Virtuals Protocol, with a total supply of 1 billion tokens, allocated as follows:

• 60%: Public circulation
• 35%: Ecosystem Treasury
• 5%: Liquidity Pool

The uses of tokens include: underlying assets, payment tools, and governance rights. The token economic model is designed to enhance the scarcity and value of $VIRTUAL through deflationary mechanisms and community incentives.

7. Industry Outlook

The AI Agent industry is currently in a rapid development stage, with a global market size growing at an average annual rate of 40%. It is expected that over the next five years, the market size will increase from the current $10 billion to $30 billion.

8. Competitor Analysis

1. AgentX: The number of users exceeds 100,000, collaborating with several large enterprises, but adopts a centralized architecture.
2. Altered State Machine ($ASTO): A platform for creating and training AI-driven NFTs, with a smaller market capitalization.
3. Olas Network ($OLAS): AI and blockchain integration framework, the community size is relatively small.

9. Development Planning

Short term: Optimize user experience, lower the creation threshold, with a target user count of 15,000. Mid-term: Expand international markets, enhance project visibility, and strive to launch on more trading platforms. Long-term: Become a global leading AI and blockchain integrated ecological platform, achieving deep integration with multiple fields of the real world.

10. Summary

Virtuals Protocol shows strong potential in the field of AI Agent and blockchain integration. It has a professional team, solid technical foundation, unique business model, and clear development plan. $VIRTUAL has multiple uses, and its token economic model is reasonably designed, which provides long-term appreciation potential. However, given the significant increase in token market value in the short term, investors are advised to proceed with caution.

In the future, with the innovation of AI technology and the expansion of blockchain applications, Virtuals Protocol is expected to stand out in industry transformation, bringing a richer, more convenient, and intelligent digital life experience to global users.