《Can @virtuals_io's new Genesis Save the Ecosystem? 》

As we all know, I was the one who built the group at the peak, I am also the one who got trapped at the highest point, I was the one who kept bottom-fishing, I was the one who believed the story, and I am still the one who didn't run during the rebound.

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🎗️What is Genesis?

To talk about Genesis, we have to go back to a few months ago when I discussed with @everythingempt0 how @virtuals_io should proceed next. He told me that we need to create something fair, and that’s how Genesis was born.

🎗️So let’s see how Genesis is fair?

Genesis is a protocol-level token distribution primitive that determines participants' token acquisition rights through “usage, liquidity, and coordination.”

Its goal is to eliminate issues such as market manipulation, early snipers, or monopolization by large players through contribution-based distribution logic.

🎗️What are the characteristics of Genesis?

1. Access based on points;

2. Dynamic distribution model;

3. Refund guarantee;

4. Fairness and transparency;

🎗️What are the goals and significance of Genesis?

For the AI agent team: better chip distribution, the project side cannot gain absolute control, and retail investors also do not get much, leading to a true “wealth-sharing” scenario;

For ecosystem participants (Virgens): users gain early access opportunities to top AI agent projects through contributions, with distributions based on points rather than the amount of funds. As long as they have enough points, they can achieve significant things with minimal expenditure;

For the ecosystem: it forms a closed loop with positive or negative spirals, where Virgens continually earn money, and points remain valuable, leading more people to earn points and creating a positive spiral. Conversely, if points lose value, everyone sells, leading to a negative spiral; (the points will be mentioned later)

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🍭What are Genesis points?

Genesis Points are the points within the Virtuals Protocol ecosystem, used to exchange for pre-sale qualifications for new AI projects on the Genesis Launchpad.

🍭What are the uses of points?

The purpose of points is to prevent token issuance from being manipulated by whales, ensuring retail investors have a fair opportunity to participate.

It serves as an access threshold, where consumption is done using points instead of 💰.

🍭How to obtain Genesis Points:

Create content;

Participate in community activities;

Hold $VIRTUAL tokens or stake tokens;

Purchase AI AGENTS from the ecosystem;

🍭Important notes about Genesis points:

Validity period: these points have an expiration period of 30 days. If not used, they become invalid, which enhances user activity;

Usage: these points can only be used for participation in the Genesis launchpad distribution, with no other uses;

Black box: Transferring or selling $VIRTUAL will reduce points; participating in the Genesis launchpad and then selling will also reduce points; (these are based on test results, and it's unclear if everyone experiences the same)

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💕Pros and Cons of Genesis

💕Advantages:

1. Fair distribution and anti-sniping mode;

Setting a cap for each individual prevents sniping at the opening;

2. High participation and community incentives;

Points have a 30-day validity period; if not participated in, they expire, and the sources of points require participation in activities, ensuring that effort is needed to earn points;

3. Ecosystem transparency and trust;

Everything is conducted on-chain, publicly and transparently, with no hidden operations;

4. Chips are sufficiently decentralized;

The project side cannot easily rug pull at the opening; at least, the chips won't reach that level;

💕Disadvantages:

1. The complexity of earning points raises the participation threshold;

Currently, the requirement is daily active participation, which is heading towards a situation of daily point rinsing, raising the participation threshold higher than simply investing money in the past;

2. Project side control is not centralized;

Recent projects have shown that if the project side's control is not centralized, they might just open and leave;

3. Centralized review contradictions;

Sometimes there is a trade-off between decentralization and centralization. For example, in yesterday’s project, if they wanted to rug pull, they could just stop it immediately;

💕Impacts:

1. Participating in Genesis may indicate that the project is indeed good enough;

2. People may want to join just to earn points;

3. Everyone may aim to complete daily active participation, consuming points;

And so on.

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​💖Can Genesis (help) save Virtuals?

This is indeed a good question because it raises the issue of whether a small horse can pull a big cart or a big cart can pull a small horse.

After all, the scope of Genesis is much smaller than that of Virtuals, so it can only increase participation; saving or boosting Virtuals is quite difficult.

We can only say that Genesis supports the Virtuals ecosystem.

​💖The actual conversion rate of the point incentive mechanism:

If Genesis continues to launch projects that create a “wealth effect,” then there will be people who continuously arrange points, leading to a positive cycle between virtual and vader;

​💖Return of external liquidity:

As we all know, the last wave of declines was due to a lack of liquidity, and the entire industry’s liquidity was drained. When liquidity returns, Virtual itself will attract sufficient liquidity, driving the Genesis and the entire ecosystem's project flywheel to start;

So ultimately, it still depends on whether it can “spin up,” because in the end, it all comes down to money. Those with ideals are not sad, but those without money are genuinely sad. We are all striving to live.

At the end of the writing

I have been working hard, and I can find the right direction. Sometimes, we cannot blame the project side; we can only say that the market conditions are indeed unsatisfactory.

Let’s listen to the wind and wait for the flowers to bloom.

#Virtual