What is Virtuals Protocol?

Virtuals Protocol, founded in 2024 by Jansen Teng and Weekee Tiew, is a launchpad platform designed for creating, tokenizing, and monetizing AI agents within gaming, entertainment, and virtual environments. Initially developed on Ethereum's Base Layer 2, it expanded to Ethereum mainnet, Solana, and Ronin by 2025. The native currency, VIRTUAL, serves as the primary transactional medium for interactions involving AI agents.

The protocol utilizes a bonding curve system, where the creation of new AI agents incurs a fee of 100 VIRTUAL. Once an agent reaches 42,000 VIRTUAL, it moves to a permanent liquidity pool. AI agents can process inputs and interact through multiple modalities, including text and 3D animation. Users can stake VIRTUAL tokens to obtain veVIRTUAL for DAO governance participation and may receive airdrops of agent tokens. Revenue generated from interactions is used for periodic buybacks and token burns, potentially reducing the overall supply of VIRTUAL.