#VIRTUAL 's Genesis Launch has attracted many new users due to numerous tenfold and hundredfold coins. Here are the participation rules.

Genesis Launch is a fair, decentralized AI agent token distribution mechanism on the Virtuals Protocol platform, aimed at achieving a broad holder base for AI agent projects through a contribution-based allocation model, enhancing project transparency, engagement, and market momentum. Here are its core rules and processes:

1. Core Objectives

Fair Distribution: Through a dynamic allocation mechanism based on points (Virgen Points) and $VIRTUAL tokens, ensure that token distributions are based on participant contributions rather than insider trading or opaque mechanisms.

Broad Participation: Encourage ecosystem participants (referred to as 'Virgens') to accumulate points and stake $VIRTUAL to earn token allocations for early high-quality AI agent projects.

Transparency: Avoid traditional token issuance's 'dark pools' or unfair practices through publicly available, on-chain distribution logic.

2. Allocation Mechanism

Genesis Launch uses a Dynamic, Point-Weighted Allocation Model, with specific rules as follows:

Token allocation ratio: The presale token allocation for each Genesis Launch accounts for 37.5% of the total token supply.

Points and $VIRTUAL Commitment:

Participants need to stake Virgen Points (earned through ecosystem participation) and $VIRTUAL tokens simultaneously to compete for presale token allocations.

Virgen Points determine the allocation cap (i.e., the number of tokens you can receive), while $VIRTUAL is used to pay for the cost of these tokens.

The maximum allocation cap for each participant is 0.5% of the total token supply.

Dynamic Allocation:

Allocations are not fixed but dynamically calculated within a 24-hour presale window, based on the total points staked by all participants.

The system will estimate allocation shares in real-time based on the proportion of points staked by participants. Final allocation will be determined after the presale window closes.

No penalty for bold staking: Participants can stake points and $VIRTUAL boldly, as excess points or $VIRTUAL will be automatically refunded after allocation ends.

Minimum Launch Threshold:

A Genesis Launch requires a minimum commitment of 42,425 $VIRTUAL to successfully launch (to initialize the token binding curve and trigger 'Sentient' status).

If the threshold is not met, the Launch fails, and all staked points and $VIRTUAL will be refunded to participants.

3. Participation Process

Preparation Phase:

Participants need to accumulate Virgen Points through activities in the Virtuals ecosystem (e.g., staking tokens, creating content, referrals, etc.).

Ensure you hold enough $VIRTUAL tokens to cover the cost of allocated tokens (up to 566 $VIRTUAL, including a 1% fee).

Presale Phase (24-hour window):

Stake Virgen Points and $VIRTUAL on the Genesis Launch page.

The system estimates each participant's token allocation in real-time based on the total staked point ratio.

Participants can adjust the staked points or $VIRTUAL amounts during the presale to avoid allocation dilution.

Allocation and Collection:

After the presale ends, the system determines each participant's token allocation based on the final point ratio.

Tokens will not be automatically distributed; participants must manually collect them through the Virtuals platform's user interface.

Refund Mechanism:

If the Launch fails (fails to meet the 42,425 $VIRTUAL threshold), all staked points and $VIRTUAL will be automatically refunded.

If the staked points or $VIRTUAL exceed the actual allocation demand, the excess will also be refunded.

4. Cooling Mechanism (TP Cooldown)

To encourage long-term holding and ecosystem contributions, Genesis Launch introduces the Take Profit (TP) Cooldown mechanism:

Trigger Condition: A 10-day cooling period will be triggered when a participant's Genesis token balance drops below their initial allocation amount (through selling or transfer).

Impact:

During the cooling period, participants' point earnings (from all Virgen Points sources) may be reduced, even to zero (depending on the selling ratio).

The cooling period applies to the entire wallet cluster (identified through on-chain analysis of associated wallets) to prevent evasion through multiple wallets.

Exemption Cases:

If sold tokens are not developer locked (Dev Lock) or have a lock-up period of less than 7 days, cooling will not be triggered.

Genesis tokens purchased on the secondary market can be freely traded without cooling restrictions, unless the total balance drops below the initial allocation amount.

Developer Lock (Dev Lock):

Developers may choose to lock their token supply to enhance community trust. The locking status is publicly displayed, affecting the applicability of the cooling mechanism.

5. Token Economics and Incentives

Liquidity Pool:

A successfully launched Genesis Launch will create a liquidity pool paired with $VIRTUAL, locked for 10 years to ensure long-term stability and fairness.

All tokens enter the liquidity pool, with no pre-mining or internal allocation.

Transaction Tax:

All transactions (including prototype and Sentient phases) are subject to a 1% transaction tax to support the reasoning costs of AI agents, GPU usage, etc.

For prototype phase agents, the transaction tax goes into the protocol treasury; for Sentient phase agents, the tax supports their independent operations.

veVIRTUAL staker rewards:

In certain cases, the protocol will repurchase tokens from the open market to counteract 'snipers' (wallets that accumulate tokens in large amounts for short-term profits).

These repurchased tokens will be airdropped to veVIRTUAL stakers (ecosystem participants with long-term locked $VIRTUAL) as a reward for long-term supporters.

In the future, the protocol plans to launch community participation features to reduce reliance on treasury funds, enhancing decentralized governance.

6. Developer-related Rules

Token Creation:

Developers must pay 100 $VIRTUAL to launch a new AI agent's binding curve.

When the binding curve accumulates to 42,000 $VIRTUAL, the agent 'graduates' into the Sentient phase, creating a liquidity pool paired with $VIRTUAL.

Developer Lock:

Developers can choose to lock a portion of the token supply (up to 50%) and set a release plan through TokenTable (e.g., 20% unlocked at TGE, remaining 80% linearly unlocked over 8 months).

It is recommended that developers lock tokens to enhance community trust, and the locking status is publicly transparent.

Information Disclosure:

Developers must provide detailed information about the AI agents (e.g., type, introduction, roadmap, social media links, etc.) for investor due diligence.

It is recommended to set the Launch time 7 days in advance to give investors enough time to review the project.

7. Points (Virgen Points) Acquisition

Acquisition Methods:

Staking: Staking specific tokens (e.g., $AIXCB, $SHEKEL, $ALCOLYTE, $VADER, etc.) can earn daily points, and $VADER stakers enjoy a 5% daily point share and priority allocation.

Content Creation: Create high-quality content related to Virtuals on platform X. Points can be earned upon submission (link your X account and submit through Typeform).

Referral Rewards: Participants can earn 20% (first-level referral) and 5% (second-level referral) rewards from the 1% transaction tax for participating in buying and selling trades in the Agent/$VIRTUAL pool using referral codes.

Use of Points:

Token allocation competition for Genesis Launch.

Points must be manually collected daily on the Virtuals website.

8. Other Considerations

Transparency and Trust:

All token allocations, locking statuses, and transaction taxes are publicly available on-chain to ensure fairness and verifiability.

The developer locking and allocation mechanism is executed through tools like TokenTable to reduce human intervention.

Failure Protection:

If the Launch does not meet the minimum $VIRTUAL commitment, all funds and points will be refunded to ensure participants are risk-free.

Ecosystem Support:

The protocol manages ecosystem funds through a DAO-controlled multi-sig wallet (accounting for 35% of total $VIRTUAL supply), with an annual release of no more than 10%, requiring governance approval.

Link: app.virtuals.io/geneses

Earn Points: app.virtuals.io/points