Will it end on-chain snipers and conspiracy behaviors? A quick read on Virtuals Protocol’s new launch mechanism - Genesis.

With the decline in popularity of AI agents, the industry is undergoing a reconstruction of fair launch mechanisms. On April 17, Virtuals Protocol launched the new Genesis Launch mechanism on Base, aiming to redefine the rules of token distribution.

According to official descriptions, Genesis Launch is a protocol layer primitive specifically built for AI agent token distribution. It upgrades token launches into a proof-based system. Its three core features include: a contribution-based access system, on-chain transparent and traceable allocation logic, and an automatic refund mechanism that protects participants’ rights.

What is Genesis Launch?

Genesis Launch is an innovative token distribution mechanism within the Virtuals Protocol ecosystem, with the core principles of “fair, open, and efficient,” aiming to build a permissionless and fair competitive environment. This mechanism uses staking and dynamic distribution models to ensure early supporters can obtain a fair share of tokens and effectively curb malicious sniping and small group manipulation on-chain.

For AI agent development teams, Genesis Launch helps them quickly accumulate a broad user base in the early stages of the project. This diverse and decentralized holder structure not only increases the project’s market exposure but also promotes stakeholder collaboration, accelerates token circulation, and solidifies the project’s long-term development foundation.

For ecosystem participants (Virgens), the contribution-based entry mechanism and fair distribution system provide them with the opportunity to participate early in high-quality AI agent projects. If the launch is successful, each participant can obtain agent token allocations at the same price based on their committed points and corresponding subscription to VIRTUAL tokens in the early stages.

Moreover, Genesis Launch changes the opaque model of early project exposure by significantly enhancing transparency and fairness during the project initiation process through quantifiable participation standards. At the same time, mechanisms such as full refunds in case of launch failure and a single-wallet cap address the “early bird trap” and “whale monopoly” issues in the industry.

How Does Genesis Launch Work?

Each token launch follows this process:

• AI agent initiates token launch process: Initial agent creation requires a 100 VIRTUAL token creation fee, which is non-refundable regardless of the launch result.
• User commits points: Users have 24 hours to pledge points to participate in the presale.
• System dynamically estimates allocation: The system calculates the estimated dynamic distribution based on the total committed points from all users. At the same time, users deposit the corresponding amount of VIRTUAL tokens to lock in their allocation. The more points committed, the higher the maximum allocation.
• Locking allocation: The final distribution is determined at the end of the 24-hour window based on the total committed points.
• Launch result: If the total VIRTUAL tokens subscribed is less than 42,425 VIRTUAL, the launch is considered a failure, and all pledged points and subscribed VIRTUAL tokens are refunded. If the total VIRTUAL tokens subscribed exceed 42,425 VIRTUAL, the launch is considered successful, and any VIRTUAL and points beyond the allocation limit will be fully refunded. The refund process is automatically executed by the smart contract.
• Token claim: After a successful launch, users can claim their allocated tokens through the user interface.

Core Mechanisms of Genesis Launch

Point Acquisition System: Incentivizing Value Contribution

As mentioned earlier, Genesis distributes agent tokens based on points (Genesis Points), which are earned through users’ contributions to the ecosystem. This mechanism ensures that agent tokens flow to true participants rather than short-term speculators.

In early April, Virtuals introduced the Virgen point system, issuing points in real-time to participants who actively support the Virtuals ecosystem. Notably, the points have a 30-day validity period, encouraging users to remain active and ensuring the ecosystem’s sustainable development.

Users can earn points through the following methods:

• Invest in prototype agents (Prototype Agents, tokens not yet graduated) and sentient agents (Sentient Agents, tokens that raised 42,425 VIRTUAL for successful graduation).
• Hold VIRTUAL tokens.
• Stake VADER (5% of daily points will be allocated to VADER stakers).

Dynamic Distribution Mechanism

Genesis uses a dynamic allocation strategy, where a user’s estimated allocation will be adjusted in real-time based on the changes in points pledged by other participants. However, before the 24-hour participation window closes, users can continuously add points and adjust their subscription amounts to flexibly adapt their investment strategy.

It’s worth noting that pledged points can compete for 37.5% of the total token supply in the presale, and the maximum allocation for a single user is capped at 0.5% of the total token supply. This design effectively prevents token concentration.

Standardized Token Economics

All AI agent projects launched through the Genesis mechanism follow a standardized token distribution framework:

• Public sale: 37.5% of total token supply
• Liquidity pool: 12.5%
• Developers, treasury, and marketing (Dev/Treasury/Marketing): 50%

Summary

Virtuals Protocol’s Genesis Launch mechanism, with its contribution-based distribution model and dynamic adjustment strategy, provides a more transparent and efficient launch platform for AI agent projects and participants within its ecosystem. It not only significantly reduces the risk of market manipulation but also drives the continued healthy development of the Virtuals ecosystem.

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