Recently, the X402 protocol was hotly discussed, but those in the know understand that it is merely a 'payment trigger'—AI agents do not even have a trustworthy identity, and if a transaction goes wrong, there is no way to hold anyone accountable. Now IDC predicts that by 2030, AI agents will support a $19.9 trillion economy, and without reliable underlying infrastructure, this cake simply cannot be sliced.

Those who understand know that current AI agent transactions are just a 'semi-finished product'— capable of doing some automatic ordering, but identity cannot be verified, and transaction security is not guaranteed. To truly establish a large-scale machine economy is pure fantasy. This project has hit the nail on the industry’s head.

#KITE The most ruthless aspect is directly using Layer1 to tackle hard problems.

A three-layer identity system closes security loopholes by managing users, agents, and sessions separately, which is crucial! Previously, there were projects that handled AI payments, but issues like agent theft couldn't be traced. Now, session-level permission control is like having 'double insurance' for every transaction. Financial institutions thrive on this system—after all, with automated trading, safety is more important than speed.

The token rhythm aligns with industry pain points, first relying on incentives to build the ecosystem (Phase One), then introducing staking and governance (Phase Two). This approach is much smarter than those projects that lock up assets right away; binding token utility to ecosystem prosperity is the long-term strategy. $KITE This two-step process can capture traffic early on while stabilizing the network later.

The Layer1 track is no longer about comparing TPS; even if you achieve tens of thousands of throughput, it’s still difficult to break through without finding vertical scenarios. However, AI agent payments are a necessity—by 2026, 40% of enterprise applications will need to embed Agents. These intelligent agents need to automatically procure and pay API fees every day; they can't rely on humans to cover every time, right?

The logic of Kite is simple: send an 'ID card' to the AI agent, then create a 'marketplace' that can automatically calculate accounts, with tokens serving as the pass for this market. Once machine trading becomes the norm, the value of this currency is beyond current imagination.