tl;dr
AI16z, a venture capital firm, plans to overhaul its token economics to enhance the value of its native token and establish itself as a leader in decentralized AI. The proposed plan includes creating a launchpad for AI projects, introducing agent-to-agent interactions, and tying the value of its tok...
Ai16z, a venture capital firm, plans to overhaul its token economics to enhance the value of its native token and establish itself as a leader in decentralized AI. The proposed plan includes creating a launchpad for AI projects, introducing agent-to-agent interactions, and tying the value of its token to various products within the ecosystem. The team aims for the AI16z token to become the base currency for agent-to-agent transactions and hopes to position itself as a layer-1 blockchain for AI, potentially reaching a $100 billion valuation. The proposal comes as the AI16z token experienced a market cap of $1.5 billion, with a current trading value of $1.28.
KEY DETAILS OF THE NEW PROPOSAL A document detailing the tokenomics discussion states that the plan will be enforced in two phases starting next year. Phase 1 will involve creating a launchpad in Q1 2025, similar to Pump.fun. Similarly, the Ai16z launchpad will act as a platform to launch Eliza-based AI projects. To foster community collaboration, it was also proposed that the platform’s code be made public after the January launch. When a new AI project is launched on the platform, users can trade that token for SOL for a small fee. This fee will then be used to buy back Ai16z tokens from the market and to create a liquidity pool. The launchpad will also introduce agent-to-agent interactions, multi-chain integrations, and other developments leveraged by Eliza’s plugin architecture. So, the key to this phase is the value capture mechanisms, including launch fees, ai16z token staking, and liquidity pools paired with the token.
In phase 2, Ai16z plans to tie the value of its token to various products within the ecosystem. The Ai16z token is expected to become the base currency for agent-to-agent transactions, similar to how Ethereum powers decentralized applications on its blockchain. "The goal of this ecosystem is to have multiple products add value to each other and inextricably tie value to the ai16z token. The analogy here would be how ETH or SOL underpins most core decentralized infra built on top of it," the proposal said.
AI16Z AIMS $100 BILLION VALUATION? The team also hopes that Ai16z can become a layer-1 blockchain for AI in the long term. The tokenomics discussions raised the point that an L1 blockchain is how Ai16z can reach a valuation of $100 billion. In November, Ai16z joined forces with Ryze Labs to unveil AICombinator, an initiative supported by a $5 million fund. This program will empower developers to create novel projects that merge AI capabilities with cryptocurrency technologies. According to CoinGecko, the AI16Z token was trading at $1.28 at press time, down 5% over the past 24 hours. Interestingly, the tokenomics overhaul comes as AI16Z hit a $1.5 billion market cap for the first time earlier this week.