On-chain sniper doomsday? Understand the new launch mechanism of Virtuals Protocol in one article Genesis

Original author: KarenZ, Foresight News

As the popularity of AI agents declines, the industry is undergoing a restructuring of a fair launch mechanism. On April 17, Virtuals Protocol launched a new launch mechanism, Genesis Launch, on Base, aiming to redefine the game rules of token distribution.

According to official description, Genesis Launch is a protocol layer primitive built specifically for AI proxy token allocation, which upgrades token launches to proven systems. Its three core features include: an access permission system based on contribution points, a transparent and traceable distribution logic on the chain, and an automatic refund mechanism that protects participants' rights and interests.

What is Genesis Launch?

Genesis Launch is an innovative token distribution mechanism within the Virtuals Protocol ecosystem, with the core concept of "fairness, openness and efficiency", and is committed to building a level playing field without permission. Through the points pledge and dynamic allocation model, this mechanism not only ensures that early supporters can obtain a reasonable token share, but also effectively curbs malicious sniping and small group manipulation on the chain.

For AI agent development teams, Genesis Launch can help them quickly accumulate a broad user base during project startup. This diversified and decentralized holder structure can not only enhance the market exposure of the project and promote the coordination of interests of all parties, but also accelerate the market circulation of tokens and lay a solid foundation for the long-term development of the project.

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

In addition, Genesis Launch changed the opacity model of early exposure of traditional projects, and greatly improved the transparency and impartiality of the project startup process through quantifiable participation standards. At the same time, the mechanism of full refund and a single wallet setting upper limit if the launch fails, also greatly solves the two major industry pain points of "early bird trap" and "big whale monopoly".

How does Genesis Launch work?

Each token launch follows the following process:

• The AI ​​agent initiates token launch process: The initial agent creation requires the creation fee of 100 VIRTUAL tokens, which will not be refunded regardless of the launch result;
• User Commitment Points: Users have 24 hours to commit (pledge) points to participate in pre-sales;
• The system dynamically estimates the allocation situation: The system calculates and estimates the dynamic allocation situation based on the total points promised by all users. Meanwhile, the user deposits the corresponding number of VIRTUALs to lock the allocation quota. The more promised points, the higher the maximum allocation amount.
• Credit Lock: The final allocation is determined at the end of the 24-hour window based on the promised total points.
• Result of launch: If the total number of VIRTUALs subscribed is less than 42,425 VIRTUALs, it is deemed to be a failed launch and all promised points and subscribed VIRTUAL tokens are refunded. If the total number of VIRTUALs subscribed is higher than 42,425 VIRTUALs, it is deemed to be successful in launch and any VIRTUAL and points exceeding the allotment will be fully refunded. The refund process is automatically executed by the smart contract.
• Token application: After the launch is successful, the user will claim the allocated tokens through the user interface.

Genesis Launch Core Mechanism

Points acquisition system: incentive value contribution

As mentioned earlier, Genesis allocates proxy tokens through points (Genesis Points), which are based on user contributions to the ecosystem. This mechanism ensures that proxy tokens flow to real participants, not short-term speculators.

In early April, Virtuals launched the Virgen Points System, which will distribute points in real time to participants who actively support the Virtuals ecosystem. It is worth noting that at the same time, the points are valid for 30 days, which encourages users to continue to be active and ensure the sustainability of ecological development.

Users can obtain points through the following channels:

• Invest in tokens and Sentient Agents (Sentient Agents, raising 42,425 VIRTUAL successful graduation tokens) tokens launched through Virtuals;
• Hold VIRTUAL;
• Staking VADER (5% of the points per day will be allocated to the VADER stakeholder).

Dynamic allocation mechanism

Genesis adopts a dynamic allocation strategy, and users' estimated allocation quotas will be adjusted in real time as other participants commit points. However, before the 24-hour participation window is closed, users can add points and subscription amounts at any time to flexibly adjust their investment strategies.

It is worth noting that participants promised points to compete for pre-sale shares of 37.5% of the total supply of tokens, and the maximum allocation limit for a single user is 0.5% of the total token volume. This design effectively avoids excessive concentration of tokens.

Standardized token economics

All AI proxy projects launched through the Genesis mechanism follow a unified token allocation framework:

• Public offering: 37.5% of the total supply of tokens;
• Liquidity pool: 12.5%;
• Developer, vault, marketing (Dev/Treasury/Marketing): 50%.

summary

Virtuals Protocol's Genesis launch mechanism has built a more transparent and efficient launch platform for AI agent projects and participants in its ecosystem with contribution-oriented allocation model and dynamic adjustment strategy. It can not only significantly reduce market manipulation risks, but also drive the sustained and healthy development of the Virtuals ecosystem.