Individually, AI and Blockchain are among the hottest and most transformative technologies. Collectively, they are incredibly synergistic – hence the concept 1 + 1 = 3 in the title. We see more examples of how the two will interact. Over time, the level of interaction will be extended. Many projects are being developed which provide the power of AI to blockchain applications and vice versa. One of those projects that drew significant attention is the virtual protocol. The project was launched in October 2024 via integration with base, an Ethereum Layer-2 network. Most recently, the project announced that it extended to Solana.
The virtual protocol is a decentralized platform to buy, exchange and create AI agents. It transforms AI agents into assets into tokenized and income generators. By taking advantage of Blockchain technology, the virtual protocol allows creation, co -ownership and interaction with AI agents, expanding their potential through various applications.
AI agents are software that can interact with their environment, collect data and use data to perform self -determinated tasks to achieve predetermined objectives. Humans set out objectives, but an AI agent independently chooses the best actions he must carry out to achieve these objectives. See “What are AI agents?” For more information.
How the virtuals protocol works
The virtual protocol incorporates AI agents, blockchain infrastructure and tokenization to create an evolutionary and decentralized ecosystem. Here is a ventilation of its operation:
- Agent tokenization: AI agents are struck like ERC-20 tokens with fixed supplies, associated with virtual $ in locked liquidity pools. These tokens are deflationist thanks to buyout and burn mechanisms.
- Game framework: Agents use multimodal AI capacities, such as text generation, speech synthesis, animation of gestures and blockchain interactions. This framework allows agents to adapt in real time.
- Income routing: Agents earn income through inference costs, applications of applications or user interactions. Profits flow in their chain wallets for redemptions or treasure growth.
- Memory synchronization: Agents retain multiplatform memory via a long -term memory processor, ensuring contextual continuity specific to the user.
- Decentralized validation: Contributions and updates of the model are governed by a system delegated proof of evidence (DPO), ensuring that the performance of agents are aligned with community standards.
- Chain wallets: Each agent operates an ERC-6551 portfolio, allowing autonomous transactions, asset management and financial independence.
What do virtuals do
The virtual protocol redefines digital engagement through games, entertainment and decentralized savings. By simplifying the adoption of AI, by rewarding contributors and lowering obstacles to non-experts, it creates an evolutionary ecosystem which offers value for stakeholders. The agents of the platform collectively hold an assessment of more than $ 850 million at the time of publication, led by Mendine and Aidog_AGENT. The ownership of these two tokenized IA agents is fractionalized; Everyone is held by more than 200 owners who receive a share of the revenues generated.
Examples of legal problems associated with virtuals
As with any emerging technology, the virtual protocol is faced with several legal challenges:
- Intellectual property rights: The creation and use of AI agents raise questions about property and protection of intellectual property. Make sure that creators and users have clear rights and protections are crucial;
- Data confidentiality: AI agents collect and process large amounts of user data, which raises concerns about confidentiality and data security. Robust guarantees are necessary to protect users’ information;
- Standards of responsibility and security: Ensuring the safety and reliability of AI agents is essential. Legal executives must deal with potential responsibilities and establish safety standards to protect users; And
- Regulatory compliance: As IA and Blockchain technologies evolve, regulatory compliance becomes more and more complex. The virtual protocol must navigate in various legal requirements to ensure that its operations remain legal and ethical.
- Securities laws: The tokenization of AI agents as an ERC-20 token and the fractionalized property of large value AI agents can draw attention under securities laws. If the SEC judges these tokens as investment contracts as part of the Howy test, the project could face application measures, requiring the registration. See here for our DRY discussion of the dry game for Crypto under Trump.
- Consumer financing laws: Collection and processing of user data by AI agents could submit the project to confidentiality and data protection regulations. In addition, if promotional efforts are perceived as deceptors or unfair for users or investors, this could lead to application measures under federal laws or states on consumer protection. Insofar as income sharing models are subject to consumer protection laws, this could trigger requirements for fair and clear disclosure to fractionalized owners.
- Rules specific to AI: The Federal Trade Commission (FTC) has published directives emphasizing the importance of transparency and honesty in the use of AI, and warning against misleading practices such as making complaints deceptive concerning the capacities or the results of the AI. The overexploitation of the capacities or the generation of revenue of AI agents to attract users or investors could lead to an increased regulatory examination and application. The proposed federal legislation, such as the law on algorithmic responsibility, required that projects such as virtuals assess the impacts of biases and discrimination on automated decision -making systems, including AI. AI agents may require audits for biases, transparency and responsibility, in particular given their use in user interactions and decision -making.
Despite the new legal problems of the Virtuals Protocol protocol, the project represents an exciting and important progression in the integration of AI and blockchain technologies. By transforming AI agents into assets into token, it creates new opportunities for digital engagement and revenue generation. However, solving associated legal problems is essential to guarantee user confidence and the sustainable growth of the platform.
