What is Virtuals Protocol (VIRTUAL)?

Deep Dive

1. AI Agent Economy

Virtuals Protocol allows users to develop AI agents—autonomous programs capable of tasks like market analysis, gaming interactions, or virtual commerce. These agents are tokenized as NFTs, enabling shared ownership and revenue streams from service fees or trading (Crypto.com). For example, AIXBT (an agent on Virtuals) analyzes crypto markets in real time, while Luna acts as a 24/7 AI influencer. Agents are created using 100 VIRTUAL tokens, with liquidity pools pairing agent tokens against VIRTUAL to incentivize participation.

2. Ethereum Layer 2 Architecture

The protocol operates on Ethereum’s Base network, leveraging its security and scalability for onchain agent coordination. This design allows agents to interact with smart contracts, manage assets, and execute transactions autonomously. Recent upgrades include deploying agents natively on Ethereum for threat detection and expanding integrations with platforms like Coinbase Retail DEX (Virtuals on X).

3. Decentralized Governance

Governance is managed by veVIRTUAL (vote-escrowed tokens). Holders with ≥0.1% supply can propose initiatives, such as funding strategies or ecosystem grants. Proposals pass with a 25% quorum, ensuring community-driven evolution (Wave-1 Proposals).

Conclusion

Virtuals Protocol merges AI autonomy with blockchain’s trustless framework, creating a decentralized ecosystem where users co-own and profit from AI agents. Its Ethereum-based architecture and community governance model position it as infrastructure for the emerging AI economy. How will decentralized AI agents reshape industries like gaming and DeFi?