Virtuals Genesis Launch: The 'Third Path' of Token Issuance

Virtuals Genesis Launch (hereafter referred to as VGL) proposes a 'third path' between high FDV venture tokens and chaotic meme tokens, opposing the traditional VC-driven tendency towards capital centralization while resisting the financial nihilism represented by meme tokens. It seeks a balance between capital efficiency, technological innovation, and community governance.

Dual Critique of Anti-VC and Anti-Financial Nihilism

Anti-VC

VGL issues AI tokens with a fixed low FDV ($112,000 VIRTUAL, approximately $220,000), challenging the capital logic of high FDV token models. High FDV typically involves VCs locking in large amounts of tokens early, leading to limited circulating supply, increased price manipulation risks, and marginalization of community participation. VGL's low FDV strategy aims to enhance community sense of participation and ownership through decentralized token distribution, while reducing the distorting effects of capital concentration on project governance.

Anti-Financial Nihilism

In contrast to the speculative drive and vacuity of meme tokens, VGL focuses on 'small but beautiful' AI-driven projects, emphasizing technical core and practical utility. VGL attempts to provide a theoretical framework for fundraising and community building for technology-driven projects in a market environment suffering from liquidity exhaustion.

Case Study: The Path Evolution of @BasisOS

The team behind BasisOS, Logarithm Labs, has been dedicated to DeFi protocol development since 2023, initially focusing on LP optimization with the LSDFi protocol, aiming to reduce impermanent loss and enhance yields through algorithmic design for Uniswap V3 LP. However, constrained by market attention and funding support, the project stagnated in November 2024, and the team even paused the X update, with the last released content being a technical discussion on on-chain perpetual contract DEX.

In April 2025, Logarithm Labs announced the launch of the token $BIOS and completed financing and community restructuring through VGL's low FDV issuance mechanism. This process not only represents a breakthrough in funding but also allows BasisOS to:

Reconstruct community incentives

Refocus on technical value

Reshape market signals

In summary, VGL's core lies in balancing the tension between capital efficiency, community governance, and technological innovation through a low FDV and technology-oriented filtering mechanism, providing a transformation paradigm for technology projects from capital dependency to community empowerment.

However, its limitations are also worth noting: low FDV may restrict the project's long-term capital reserves, and the decentralized nature of community governance may face efficiency challenges due to rising coordination costs.