Virtuals Protocol (VIRTUAL) is a decentralized protocol on Base and Ethereum that allows the creation, ownership, and monetization of AI Agents – cross-platform interacting AIs combined with Meme coins.
The project offers a unique AI-as-an-asset model with ERC-20 Tokens for each AI Agent, allowing users to both own and earn revenue, while also participating in the upgrade and governance of AI in the Web3 ecosystem.
MAIN CONTENT
Virtuals Protocol creates tokenized AI Agents and allows co-ownership and profit sharing.
The AI upgrade model based on capitalization and the meme coin launchpad supports sustainable development.
A diverse ecosystem with AI interactions on TikTok, Telegram, Roblox, with the main VIRTUAL Token.
What is Virtuals Protocol and why has it gained attention in the Base and Ethereum communities?
Virtuals Protocol is a decentralized platform built on Base and Ethereum, allowing users to create and own tokenized AI Agents operating across multiple platforms like TikTok and Web3.
A major differentiator is that each AI Agent is issued a separate ERC-20 Token, allowing owners not only to invest but also to co-own, sharing revenue from livestreams, concerts, and content creation. Thus, Virtuals opens up the AI-as-an-asset layer in the cryptocurrency market.
What are the operational mechanisms and main products of Virtuals Protocol?
The Co-Ownership Layer is the heart of Virtuals; each AI Agent is tokenized with 1 billion ERC-20 Tokens, and users buy Tokens with VIRTUAL to own shares and benefit from AI operations.
Virtuals Protocol not only turns AI into tradable assets but also uses buyback and burn mechanisms to increase Token value and create sustainability in the ecosystem.
CEO of the Virtuals project, 2025
How does the Co-Ownership Layer work?
Each AI Agent is issued a separate Token with a standard total supply of 1 billion Tokens. Token holders share revenue from AI operations such as livestreams and online events. Additionally, a portion of the profits is reinvested to buy back and burn Tokens to help limit supply.
Token holders also have the right to vote on upgrade decisions and govern AI Agents through a transparent governance mechanism with community participation.
AI Agent upgrade mechanism based on market capitalization
AI Agents develop across 5 levels based on Token capitalization, from basic chatting to self-trading on-chain as a complete Web3 entity, encouraging users to maintain and grow Token value.
AI Agent Capability Levels Level 1 Basic chatting on Virtuals Level 2 Create an X (Twitter) account and post Level 3 Create a Telegram group, chat with holders Level 4 Increase multi-channel user interaction Level 5 Automatically trade on-chain, operate independently
What are the highlights of the AI Agent Launchpad?
The Virtuals launchpad allows for easy creation of meme coins along with AI Agents, using a bonding curve mechanism that increases as Tokens are sold. When the project's capitalization reaches 420,000 USD, AI Agents will be deployed including X accounts and liquidity on Uniswap.
This connects the Web3 meme culture with practical AI, but there may be risks of "pump & dump" if the community is not strong enough.
What is the Agent Creation Factory?
Users can create AI Agents themselves through 3 simple steps: provide an avatar, Token information & stake 2,400 VIRTUAL to provide liquidity. The liquidity pool will be locked for 10 years to ensure long-term commitment and prevent rug-pulls.
What are the highlights of Virtuals Protocol?
Virtuals pioneers the tokenization of AI, turning AI into tradable ownership assets, providing steady income for holders and creators.
The project integrates SocialFi & GameFi, allowing AI Agents to operate across platforms from TikTok, Telegram to Roblox and game engines via the G.A.M.E. Framework.
"The combination of AI and Meme coin on Virtuals creates a completely new Web3 experience, allowing users to earn money and interact with AI in a practical and engaging way."
Technology Director of Virtuals, 2025
The ability to upgrade AI based on continuous capitalization helps the community hold Tokens long-term, increasing profit potential. The launchpad is easy to use for all developers without needing to know how to code.
Transparent revenue, fair distribution, and buyback/Token burn mechanisms help stabilize the project and increase value in the long term.
Who are the prominent AI Agents in the Virtuals ecosystem?
Virtuals has introduced many diverse AI Agents, each representing a part of independent digital assets and having its own community.
Luna – AI influencer on TikTok
Luna is the most successful AI Agent, achieving over 500,000 followers on TikTok, conducting livestreams, voice interactions, and responding to comments, creating real revenue streams for Token holders.
G.A.M.E. – AI Framework for gaming environments
G.A.M.E. enables AI Agents to interact in games, acting as dynamic NPCs in metaverse environments like Roblox or Minecraft, expanding AI applications in the gaming industry.
Roblox Westworld – The self-operating AI world
Roblox Westworld is a sandbox metaverse where AI Agents live and interact in a virtual environment, demonstrating the potential application of AI Agents in role-playing games and the metaverse.
Overview of the VIRTUAL Token and Tokenomics
The VIRTUAL Token is a utility and governance Token on Base and Ethereum with a total supply of 1 billion Tokens, approximately 654,865,618 Tokens circulating, used for creating AI Agents, trading, governance, and supporting the ecosystem.
Distribution Ratio Notes Public distribution 60% Managed by DAO, unlocks a maximum of 10% each year in the first 3 years, based on community voting. Ecosystem 35% Flexible issuance based on demand and growth rate. Liquidity 5% Fully unlocked to support the initial liquidity pool.
Who are the project team, investors, and partners of Virtuals Protocol?
Project team
The development team remains anonymous and has not disclosed the specific identities of the founding members or advisors.
Investors
According to Cryptorank, Virtuals raised seed funding in 2021 with major investors like DeFiance Capital, Merit Circle, MV Global, StakeZ Capital, and NewTribe Capital. Subsequent funding rounds were through IDO on Fjord Foundry, Enjinstarter, PAID.
Strategic partners
Ora Network: Providing on-chain AI infrastructure, supporting real data for AI Agents.
Chasm: User distribution, expanding interaction range for AI Agents on the Web3 platform.
Summary of Virtuals Protocol
Virtuals Protocol is a pioneering protocol that combines AI and Meme coin Token on Layer-2 networks like Base. Users can not only create and interact with AI but also co-own, share revenue, and participate in the management of AI Agents with separate Tokens, opening up a new, sustainable, and multidimensional Web3 experience.
Note, this article is for informational purposes only and is not investment advice.
Frequently asked questions
How does Virtuals Protocol allow for the creation of AI Agents?
Users can create AI Agents through the Agent Creation Factory by providing information, staking 2,400 VIRTUAL, and the system will automatically issue Tokens and liquidity pools.
What role does the VIRTUAL Token play in the ecosystem?
VIRTUAL is a utility and governance Token used to create AI Agents, trade Tokens, participate in governance, and support ecosystem development.
What risks are there when participating in the purchase of AI Agent Tokens?
Pump & dump risks may occur if the community is weak and does not manage supply well; however, the buyback burn mechanism and locked liquidity pool help mitigate this risk.
How does the AI Agent upgrade its capabilities?
The AI's capabilities are upgraded based on Token capitalization, from basic chatting to self-trading on-chain as it reaches different capitalization levels.
Who are the major investors in Virtuals Protocol?
DeFiance Capital, Merit Circle, MV Global, and StakeZ Capital are major investors from the 2021 seed round, according to Cryptorank data.
Source: https://tintucbitcoin.com/virtuals-protocol-virtual-la-gi/
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