Virtuals Protocol: The Pioneer of Creating On-Chain AI Agents in Three Minutes

1. Project Overview

Virtuals Protocol was established in 2021 as a blockchain-based AI Agent generation platform. The project aims to enable anyone to create virtual characters that can interact with the environment, fundamentally changing the way virtual interactions occur through hyper-personalization and immersive experiences.

The project officially launched in 2023, with the core goal of achieving decentralized co-ownership of AI agents through blockchain, promoting the widespread application of AI in fields such as gaming, entertainment, and the metaverse. The AI agents of Virtuals Protocol have multimodal interaction capabilities and can operate seamlessly across multiple platforms.

2. Development History

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

2023: With AI technology sweeping the globe, PathDAO officially transitioned to Virtuals Protocol, focusing on the integration of AI and blockchain, and deployed smart contracts on the Base chain.

2024: Launch of the first AI agent Luna, which has gained over 500,000 followers on social media platforms. Currently, more than 1,000 AI Agents have been created on the platform.

By the end of 2024: The token $VIRTUAL is listed on multiple exchanges, with its market value skyrocketing from tens of millions of dollars to over 3 billion dollars in just over two months.

3. Core Team

The team of Virtuals Protocol is made up of a group of young individuals with experience in consulting, blockchain, AI, and gaming. The core members include:

• Jansen Teng: Co-founder and CEO, graduated from Imperial College London, has founded multiple companies.
• Wee Kee: Co-founder, holds a Bachelor's degree from Imperial College London and a Master's degree from London Business School.

Other team members come mostly from Southeast Asia, with backgrounds from prestigious universities and work experience in well-known companies.

4. Business Model

Virtuals Protocol operates on a decentralized model, using blockchain as its underlying infrastructure. Users can create AI agents through a simple interface, and the platform charges fees based on the complexity of the agents. Meanwhile, the platform encourages developers to create derivative applications based on its protocol, collaborating through revenue sharing and other means.

The ecosystem includes:

• Protocol layer: provides AI models and algorithms
• DApp Layer: Allows decentralized applications to integrate AI agent functionality
• Contributor Network: Data contributors, validators, and developers earn rewards through contributions.

5. Token Economics

$VIRTUAL is the core token, with a total supply of 1 billion pieces, distributed as follows:

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

The use of the token includes creating AI agents, paying service fees, and participating in protocol governance. The economic model is designed to enhance the value of the token through deflationary mechanisms and community incentives.

6. Industry Prospects

The AI Agent industry is currently in a stage of rapid development, with strong market demand for intelligent services. It is expected that in the next 5 years, the market size will grow from the current $10 billion to $30 billion.

7. Competitive Analysis

1. AgentX: Laid out AI Agent relatively early, with over 100,000 users, but adopts a centralized architecture, which has limitations in data privacy and ownership.

2. Altered State Machine ($ASTO): Focused on AI-driven NFT creation and training. In contrast, Virtuals Protocol has advantages in decentralized governance and cross-platform integration.

3. Olas Network ($OLAS): Aims to bridge the gap between AI and blockchain. While there is some activity on social media, the community size and influence are relatively small.

8. Development Plan

Short term: Optimize user experience, lower technical barriers, with the goal of increasing the number of users by 50%.

Mid-term: Expand international markets, enhance project visibility, and strive to be listed on more mainstream trading platforms.

Long-term: Committed to becoming a global leader in the integration of AI and on-chain ecosystems, achieving deep integration with various fields of the real world.

9. Summary

Virtuals Protocol demonstrates strong potential in the integration of AI Agents and blockchain. It has a diverse professional team, solid technical foundation, and a unique business model. The $VIRTUAL token has multiple uses, and its economic model is well-designed. Considering the high growth expectations of the industry and the project's advantages, there is still room for valuation growth in the long term. However, given the significant increase in the token's market value in the short term, investors are advised to proceed with caution.

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