The AI Agent Token Issuance神器Virtuals and Its Sexy Cooperation with the TAO Ecosystem

We can now roughly divide the Crypto AI Agent faction into two major factions: Virtuals and AI16Z. AI16Z's influence radiates from Solana to the entire blockchain ecosystem, including $HEU on Base, which belongs to the AI16Z faction.

The Crypto AI Agent faction can now be broadly divided into two main factions: Virtuals and AI16Z. AI16Z's influence spans from Solana to the entire blockchain ecosystem, including $HEU on Base, which belongs to the AI16Z faction. Of course, Virtuals also has external expansion, for instance, cooperation with the TAO ecosystem, and $SERAPH $TAOCAT are products of its cooperation.

First, we have to clarify that building AI Agent infrastructure is a hot trend, such as $ZEREBRO $ARC $ALCH $GRIFFAIN. Virtuals's advantage lies in its token model, and its fundamental data performance is highly correlated with the token price, which we generally refer to as "tokens have strong value capture capability.”

And I think the cooperation between Virtuals and TAO ecosystem is very interesting. To put it simply, Virtuals is where AI Agent tokens are produced, and TAO is where tokens are used to incentivize high-quality models. Under the incentive of $TAO, models will become better and better, and high-quality models will collaborate more frequently, which will also empower AI Agents better. Now we can already see this trend.

For example, $SERAPH is an autonomous agent powered by TAO to combat fraudulent AI agents and synthetic content.

For example, @getmasafi cooperated with Virtuals, Masa launched Subnet 59: Agent Arena on TAO. The main focus of this subnet is AI Agent. We can create our own AI Agent on Twitter, and then register on Subnet 59 to compete with other AI Agents for $TAO emissions. The principle is still the logic of TAO. The better your AI Agent performs (the indicators are shown in the figure below), the more $TAO emissions you will have. Later, Masa will further refine the indicators for judging the pros and cons of Agents. (At that time, you can also pledge $MASA to vote and decide the emission of $TAO)

By cooperating with Virtuals, subnet miners (i.e., AI Agent developers) can easily launch their own tokens. For example, the $TAOCAT mentioned above, an Agent dedicated to shilling TAO, was born in this way.

In addition, Masa has also launched some peripheral services, such as cooperation with the no-code Creator.Bid, through which we can make our own Agents. And Masa's Data Boost service (provided by TAO Subnet 42), which can push real-time data to Agents to help Agents produce better output.

BTW, $TAOCAT is created by the official to attract market attention. If the official pattern is larger, it will be the best solution to pull up $TAOCAT and create some wealth effect to attract more people to play.

In the final analysis, Virtuals has become the choice of more and more infrastructure projects to issue Agent tokens, which is a huge positive flywheel. Crypto is an industry with fat protocols and thin applications. The usual idea is to use small balls to lead big balls, that is, to use the short-term bubble of applications to attract the market's attention to its infrastructure. AIXBT/LUNA and Virtuals are obviously in this relationship.

Currently, the focus of the market and developers has shifted from blockbuster applications to infrastructure (perhaps because infrastructure can have a higher valuation).

Hot application -> Infrastructure construction -> More applications -> King-level applications are born -> Users use them on a large scale -> Mass adoption