Virtuals Protocol Research: New Exploration of AI Agent Creation Platform

1. Project Overview

Virtuals Protocol was established in 2021 as a blockchain-based AI Agent generation platform. The project aims to enable anyone to create virtual characters that can interact with their environment, revolutionizing virtual interactions.

The project officially launched in 2023, with the core goal of achieving decentralized co-ownership of AI agents through blockchain, promoting the application of AI in areas such as gaming, entertainment, and the metaverse. The AI agents of Virtuals Protocol have multimodal interaction capabilities and can run seamlessly across multiple platforms.

2. Development History

2021: The project predecessor was established, focusing on gaming guilds and GameFi investments.

2023: Officially transformed into Virtuals Protocol, focusing on the combination of AI and blockchain, and deploying smart contracts on the Base chain.

2024: Launch of the first AI agent Luna, gaining over 500,000 followers on social platforms. Currently, the platform has created over 1,000 AI Agents.

End of 2024: Launched on multiple trading platforms, the token $VIRTUAL's market value rapidly increases, entering the mainstream cryptocurrency market.

3. Core Team

The team is composed of professionals from the fields of consulting, blockchain, AI, and gaming, including:

• Jansen Teng: Co-founder and CEO, graduated from Imperial College London, previously worked at Boston Consulting Group.
• Wee Kee: Co-founder, Bachelor's degree from Imperial College London, Master's degree from London Business School, previously worked at a consulting firm.

Other members mostly come from Southeast Asia, have backgrounds from prestigious universities such as the University of Cambridge and Imperial College, and have work experience in well-known companies.

IV. Business Model

1. Operating Model

Virtuals Protocol adopts a decentralized model, using blockchain as the infrastructure. Users can create AI agents with different attributes and functions through a simple interface. The platform charges fees based on the complexity of the agents, while also encouraging developers to create derivative applications and collaborate through revenue sharing and other means.

2. Ecological Construction

The ecosystem includes:

• Protocol Layer: Provides AI model and algorithm support
• DApp Layer: Decentralized applications integrated with AI agent functions
• Contributor Network: Data contributors, validators, and developers receive token rewards.

3. Token Economics

$VIRTUAL is the core token, with a total supply of 1 billion pieces, distributed as follows:

• 60%: Public Circulation
• 35%: ecosystem treasury
• 5%: liquidity pool

The use cases of the token include creating AI agents, paying service fees, and participating in protocol governance.

5. Industry Outlook

The AI Agent industry is currently in a phase of rapid development, with an average annual growth rate of 40%. In the next five years, the market size is expected to grow from $10 billion to $30 billion. Virtuals Protocol is positioned in this blue ocean market and has significant growth potential.

6. Competitive Analysis

Major competitors include AgentX, Altered State Machine, and Olas Network. The Virtuals Protocol has advantages in decentralization and cross-platform integration, but still needs to further enhance its market share and technical strength.

7. Development Plan

Short term: Optimize user experience, expand user base, enrich application scenarios. Mid-term: Expand international markets, enhance project visibility, and strive for more trading platforms to go online. Long-term: to become a globally leading AI and blockchain integrated ecological platform, achieving deep integration with multiple fields of the real world.

8. Conclusion

Virtuals Protocol demonstrates strong potential in the field of AI Agent and blockchain integration. It has a professional team, solid technical foundation, and a unique business model. The $VIRTUAL token has multiple uses and long-term value appreciation potential. However, considering the significant increase in the token's market value in the short term, investors should remain cautious.

In the future, with the innovation of AI technology and the expansion of blockchain applications, Virtuals Protocol is expected to stand out in industry transformation, bringing users a more intelligent digital life experience.