AI Agent Layer (AIFUN) tokenomics

The token economics of AI Agent Layers, such as AgentLayer and Virtuals Protocol, are designed to create self-sustaining, deflationary ecosystems that incentivize agent creation, liquidity provision, and network participation. These systems typically employ a native token that serves as the core medium of exchange, staking collateral, and liquidity pair for individual AI agent tokens.

Issuance Mechanism

The issuance mechanisms for tokens within the AI Agent Layer ecosystem are often structured to ensure a fair launch and controlled supply, frequently utilizing bonding curves and deflationary measures.

• Bonding Curve Mechanism: For individual AI agent tokens (e.g., $SWIFT, $AIFUN), issuance is often tied to a bonding curve. This mechanism ensures that as users purchase the agent's token, the price increases, and the token becomes tradable on a Decentralized Exchange (DEX) once the bonding curve reaches a certain threshold (e.g., 100% or a specific market cap like $610,500.00 or $420,000 in the case of Virtuals Protocol).
• Deflationary Issuance: Core tokens like $AGENT (AgentLayer) and $VIRTUAL (Virtuals Protocol) implement deflationary mechanisms. For instance, the $AGENT token has a transaction tax (currently 1%) where fees are used for systematic token buybacks and burns, creating sustained deflationary pressure. Similarly, the Virtuals Protocol uses revenue from user interactions to buy back and burn agent tokens, which in turn supports the value of the paired $VIRTUAL token.
• Fixed Supply and No Pre-Mine: Some protocols, like Virtuals Protocol, adhere to "Fair Launch Principles," which include maintaining a fixed total supply and ensuring no pre-mining or insider allocation of agent tokens.

Allocation Mechanism

Token allocation varies across different AI Agent Layer projects, prioritizing ecosystem growth, core contributors, and liquidity.

Wayfinder Potential Token Allocation

The Wayfinder network provides a detailed breakdown of its potential token allocation:

Other Allocation Examples

• Virtuals Protocol Community Incentives: The project envisions allocating 35.00% of the maximum token supply (00 million VIRTUAL) for community incentive initiatives, with an emission cap of no more than 10% per year for the first three years.
• Lee Quid Token Allocation: This AI agent token has a highly concentrated allocation toward a fair launch via a bonding curve:
  • Fair-Launch (Bonding Curve) on Agents.land: 95%
  • Creator: 1%
  • Distilled AI Treasury: 1%
  • AI Agent Wallet: 1%
  • Strongbox Vaults: 2%

Usage and Incentive Mechanism

The utility and incentive mechanisms are crucial for driving network activity and creating a self-reinforcing economic flywheel.

Core Token Utility

• Mandatory Liquidity Pairing: The native token (e.g., $AGENT, $AIFUN, $VIRTUAL) serves as the mandatory pairing token for all individual AI agent tokens created within the ecosystem. This ensures consistent market depth and trading stability.
• Staking and Collateral: The native token is often required as essential staking collateral for the creation and launch of new AI agents, establishing a quality threshold for ecosystem integrity.
• Payment for Services: Tokens are used as the payment method for creating agents, accessing advanced models, larger datasets, and paying for various services (e.g., concerts, merchandise, personalized interactions) provided by the AI agents.

Deflationary Incentives and Revenue Flow

• Buyback and Burn: A primary incentive mechanism is the use of revenue generated from user interactions and transaction fees to buy back the agent's tokens from the open market and permanently burn them. This deflationary process reduces supply and creates upward pressure on the token price, benefiting token holders.
• Revenue Distribution (Virtuals Protocol Example): Revenue generated from user payments is split to cover the cost of AI inferences and to fund the project's treasury. The treasury then uses these funds for periodic buybacks and burns of the agent's token. Notably, in this model, revenue is not shared directly with tokenholders or other platform users.
• Staking Rewards and Governance: Participants can stake tokens (e.g., $VIRTUAL-paired LP tokens) to participate in governance (Agent SubDAO Governance) and earn rewards from the subDAO treasury, which is funded by inference payments, trading taxes (e.g., a 1% tax on trades), and protocol emissions. Validators are rewarded for selecting successful AI agents and penalized for selecting poor-performing ones.
• Liquidity Boost: Every AI agent creation and purchase contributes to the liquidity pool of the native token (e.g., $AIFUN), reinforcing the ecosystem's liquidity.

Locking Mechanism and Unlocking Time

Locking mechanisms are primarily used to ensure long-term commitment, provide liquidity stability, and secure governance rights.

• Liquidity Pool Lock: In protocols like Virtuals Protocol, once an AI agent's token reaches the required market cap and forms a liquidity pool with the native token (e.g., Agent Token/VIRTUAL) on a DEX like Uniswap, the liquidity pool is locked.
• Lock Duration: The liquidity pool lock for the Virtuals Protocol is specified as ten years. The creator of the agent typically becomes the owner of this locked liquidity pool, ensuring long-term commitment and stability.
• Staking for Governance: Tokens can be locked to acquire governance rights. For example, in AgentLayer, stakeholders acquire voting power (veAGENT tokens) by locking their $AGENT tokens, with voting power based on the lock duration and token quantity.

Information regarding a general token unlock schedule for the "AI Agent Layer" ecosystem as a whole was not available. However, specific protocols within this space, such as Virtuals Protocol, implement a 10-year lock on the liquidity pool created during the Initial Agent Offering (IAO).