VIRTUAL is the native token of the Virtuals Protocol ecosystem. It underpins all operations within the protocol, providing utility, decentralized governance, and fostering the growth and sustainability of the ecosystem.
Key Features of the VIRTUAL Token:
Payments and Interaction: VIRTUAL is used for all transactions within the platform. This includes:
Payment for interactions with AI agents: When a user interacts with an AI agent (e.g., having a conversation, initiating an in-game action), the cost is paid in VIRTUAL.
Purchase of AI agent tokens: Acquiring ownership stakes in new or existing AI agents requires the use of VIRTUAL.
Launching and Acquiring AI Agents: The creation and deployment of new AI agents on the Virtuals Protocol platform requires the use of the VIRTUAL token. This also applies to the acquisition of already existing agents.
Governance: Holders of VIRTUAL tokens have a voting right in the decentralized autonomous organization (DAO) of the Virtuals Protocol. This allows them to participate in key decisions regarding the protocol's development, including:
Changes to the revenue distribution mechanisms of agents.
Protocol updates and new features.
Adoption of new types of collateral or integrations.
Decisions regarding the use of the treasury.
Decentralized governance of AI agents, such as defining their behavior and updates.
Liquidity and Trading Platform: VIRTUAL serves as the primary liquidity pair for AI agent tokens. When a new AI agent is created, its tokens are typically paired with VIRTUAL in liquidity pools. This provides liquidity for trading these agent tokens.
Buyback-and-Burn Mechanism: The Virtuals Protocol incorporates deflationary tokenomics. Revenues generated by AI agents can be used to buy back VIRTUAL tokens from the open market and then burn them, systematically reducing the circulating supply and creating upward pressure on the token's price.
Tokenomics of VIRTUAL:
Maximum Supply: The total maximum supply of VIRTUAL is fixed at 1 billion (1,000,000,000) tokens.
Distribution at Launch:
Public Offering: 60% (600 million tokens) — is the share that is in free circulation.
Liquidity Pool: 5% (50 million tokens) — allocated to ensure initial liquidity on decentralized exchanges.
Ecosystem Treasury: 35% (350 million tokens) — managed by DAO. Treasury emissions are limited to 10% per year for the first three years, ensuring sustainable resource distribution. These funds are intended for partnerships, grants, and ongoing community incentives.
Deflationary Mechanism: The presence of a "buyback and burn" mechanism funded by agent revenues is designed to ensure the deflationary nature of VIRTUAL, distinguishing it from many other tokens.
The tokenomics of VIRTUAL is designed to create a self-sustaining and deflationary economy, where the success of AI agents directly impacts the token's value, encouraging participation and long-term holding. #VIRTUAL $VIRTUAL
