What is Virtuals Protocol?

Virtuals Protocol, founded by Jansen Teng and Weekee Tiew in 2024, is a launchpad platform for creating, tokenizing, and monetizing AI agents in gaming and virtual settings. Originally built on Ethereum's Base Layer 2, the protocol expanded to Ethereum mainnet, Solana, and Ronin by 2025. The native token, VIRTUAL, serves as the primary currency for transactions and liquidity interactions throughout the ecosystem. The protocol utilizes a bonding curve system where users can create AI agents for a fee, allowing them to buy and sell agent tokens until they reach a liquidity pool threshold.

The AI agents developed under this protocol are designed to perform multimodal tasks, including text, speech, and 3D animation, while autonomously managing on-chain wallets. Users can stake VIRTUAL tokens to receive veVIRTUAL for governance participation, and protocol revenue generated from user interactions contributes to periodic token buybacks and burns, impacting the overall supply of VIRTUAL. The project has seen significant funding, including $16 million led by DeFiance Capital, and has established partnerships with companies like Animoca Brands and collaborations for an Agentic Fund of Funds.