On-chain Sniper's Doomsday? Understand the new launch mechanism Genesis of Virtuals Protocol in one article.

Original author: KarenZ, Foresight News

As the enthusiasm for AI agents wanes, the industry is undergoing a restructuring of the fair launch mechanism. On April 17, Virtuals Protocol launched a new launch mechanism called Genesis Launch on Base, aimed at redefining the rules of token distribution.

According to the official description, Genesis Launch is a protocol layer primitive built specifically for the allocation of AI agent tokens, which upgrades token launches to a proof system. Its three core features include: a contribution-based access rights system, on-chain transparent and traceable allocation logic, and an automatic refund mechanism to protect participants’ rights.

What is ### Genesis Launch?

Genesis Launch serves as an innovative token distribution mechanism within the Virtuals Protocol ecosystem, with the core philosophy of “fairness, openness, and efficiency,” aiming to create a permissionless fair competition environment. This mechanism ensures that early supporters can obtain a reasonable share of tokens through a points staking and dynamic allocation model, while effectively curbing malicious attacks and manipulation by small groups on the chain.

For AI agent development teams, the Genesis Launch can help them quickly accumulate a broad user base during the project initiation phase. This diverse and decentralized holder structure not only enhances the project’s market visibility and promotes collaborative interests among various parties, but also accelerates the market circulation of tokens, laying a solid foundation for the long-term development of the project.

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

In addition, Genesis Launch has changed the opaque model of early exposure for traditional projects, significantly enhancing the transparency and fairness of the project launch process through quantifiable participation criteria. At the same time, the mechanism of a full refund in case of launch failure and the single wallet cap has largely addressed the two major industry pain points of the “early bird trap” and “whale monopoly.”

How does Genesis Launch work?

Each token launch follows the process below:

• AI agent initiates token launch process: The initial agent creation requires a payment of 100 VIRTUAL tokens as a creation fee, which is non-refundable regardless of the launch outcome;
• User Commitment Points: Users have 24 hours to pledge points to participate in the presale;
• System dynamic estimation of allocation: The system calculates the estimated dynamic allocation based on the total points committed by all users. At the same time, users deposit the corresponding amount of VIRTUAL to lock in the allocation limit. The more points committed, the higher the maximum allocation limit.
• Quota Locking: The final allocation is determined based on the total committed points at the end of the 24-hour window.
• Launch Result: If the total amount of VIRTUAL subscribed is less than 42,425 VIRTUAL, it will be considered a launch failure, and all committed points and subscribed VIRTUAL tokens will be fully refunded. If the total amount of VIRTUAL subscribed is more than 42,425 VIRTUAL, it will be considered a launch success, and any VIRTUAL and points exceeding the allocation will be fully refunded. The refund process will be automatically executed by the smart contract.
• Token Claiming: After a successful launch, users will claim the allocated tokens through the user interface.

Genesis Launch Core Mechanism

Points Acquisition System: Incentivizing Value Contribution

As mentioned earlier, Genesis allocates proxy tokens through Genesis Points, which are based on users’ contributions to the ecosystem. This mechanism ensures that proxy tokens flow to genuine participants rather than short-term speculators.

At the beginning of April, Virtuals launched the Virgen points system, which distributes points in real-time to participants who actively support the Virtuals ecosystem. It is worth noting that the points have a validity period of 30 days, which encourages users to remain active and ensures the sustainability of ecological development.

Users can earn points through the following ways:

• Invest in prototype agents (Prototype Agents, ungraduated tokens) launched through Virtuals and sentient agents (Sentient Agents, successfully graduated tokens that raised 42,425 VIRTUAL);
• Hold VIRTUAL;
• Stake VADER (5% of the points will be allocated daily to VADER stakers).

Dynamic Allocation Mechanism

Genesis adopts a dynamic allocation strategy, where users’ estimated allocation amounts will be adjusted in real-time according to changes in the points committed by other participants. However, before the 24-hour participation window closes, users can add points and subscription amounts at any time, allowing for flexible adjustment of investment strategies.

It is worth noting that participants commit to a presale share of 37.5% of the total token supply, with a maximum allocation limit of 0.5% of the total token amount for a single user. This design effectively avoids excessive concentration of tokens.

Standardized Token Economics

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

• Public Sale: 37.5% of the total token supply;
• Liquidity Pool: 12.5%;
• Developers, Treasury, Marketing (Dev/Treasury/Marketing): 50%.

Summary

The Genesis launch mechanism of Virtuals Protocol, with its contribution-oriented allocation model and dynamic adjustment strategy, has built a more transparent and efficient launch platform for AI agent projects and participants within its ecosystem. This not only significantly reduces the risk of market manipulation but also drives the sustainable and healthy development of the Virtuals ecosystem.