On-chain Sniper's Doomsday? Quick Read on the New Launch Mechanism of Virtuals Protocol Genesis

End the on-chain sniper and conspiracy actions? Quick read on the new launch mechanism of Virtuals Protocol Genesis.

Written by: KarenZ, Foresight News

As the enthusiasm for AI agents cools, the industry is undergoing a reconstruction 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 AI agent token distribution, upgrading token launches to a proof system. Its three core features include: a contribution-based access rights system, on-chain transparent and traceable distribution logic, and an automatic refund mechanism that protects participants’ rights.

What is ### Genesis Launch?

As an innovative token distribution mechanism within the Virtuals Protocol ecosystem, Genesis Launch is committed to building a permissionless level playing field with the core concept of “fairness, openness, and efficiency”. Through the integral staking and dynamic distribution model, the mechanism not only ensures that early supporters can obtain a reasonable share of tokens, but also effectively curbs malicious sniping and small group manipulation 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 can not only enhance the project’s market exposure and promote the synergy of interests among various parties but also accelerate the market circulation of tokens, laying a solid foundation for the project’s long-term development.

For ecological participants (Virgens), the access mechanism based on contribution points and fair distribution system provides them with the opportunity to participate in high-quality AI agent projects in advance. 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 by significantly improving the transparency and fairness of the project launch process through quantifiable participation standards. At the same time, the mechanism of full refunds in case of launch failure and setting a limit on a single wallet has also greatly addressed the two major industry pain points of “early bird traps” and “whale monopolies.”

How does the 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 situation: 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 quota. The more points committed, the higher the maximum allocation quota.
• Quota Locking: The final allocation is determined based on the total points committed 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 limit will be fully refunded. The refund process will be executed automatically by the smart contract.
• Token Claim: After a successful launch, users will claim their allocated tokens through the user interface.

Genesis Launch core mechanism

Points Acquisition System: Incentivizing Value Contribution

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

In early 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 incentivizes users to remain active and ensures the sustainability of ecosystem development.

Users can earn points through the following methods:

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

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 adjustments to their investment strategies.

It is worth noting that participants commit points for a presale share of 37.5% of the total token supply, with a maximum allocation limit for a single user set at 0.5% of the total token amount, which effectively prevents 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 the Virtuals Protocol, with its contribution-driven allocation model and dynamic adjustment strategy, has established 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 continuous and healthy development of the Virtuals ecosystem.