What Is Virtuals
Virtuals Protocol is a platform launched in 2024 that lets users create, tokenize, and run AI agents. It is built so that people without technical expertise can make agents for gaming, entertainment, and virtual worlds.
The project grew out of PathDAO, a gaming guild founded in 2021, which pivoted to AI agents in January 2024. Its co-founders are Jansen Teng and Weekee Tiew.
Bonding Curves and GAME
Creating a new AI agent costs a 100 VIRTUAL fee. Agent tokens trade on a bonding curve, and once an agent reaches 42,000 VIRTUAL it graduates to a permanent liquidity pool paired with VIRTUAL.
The GAME framework powers agent behavior. Agents process inputs, generate responses, and remember past interactions; they can work with text, speech, and 3D animation, and can manage on-chain wallets on their own.
Tokenomics and Ecosystem
VIRTUAL has a fixed total supply of 1 billion tokens, and every agent token in the ecosystem uses VIRTUAL as its base liquidity pair and transaction currency. Holders can stake VIRTUAL to receive veVIRTUAL and take part in governance.
The protocol started on Base, an Ethereum layer 2, and in 2025 expanded to Ethereum mainnet, Solana, and Ronin. A well-known example is Luna, an AI girl band vocalist with over 500,000 TikTok followers.
Strengths and Risks
The team raised a 16 million dollar seed round led by DeFiance Capital and Beam, and has partnered with groups such as Animoca Brands. Support for several chains and easy agent creation are commonly cited strengths.
However, AI agent tokens are prone to speculative trading and sharp price swings, and the ecosystem's value depends heavily on demand for agents. Regulatory changes and smart contract risks also apply, so this information is for general reference only.