Virtuals Protocol Describes Itself As 

Virtuals Protocol is a decentralized AI and Metaverse protocol deployed on the Base L2 blockchain, enabling the creation and management of autonomous AI agents. Envisioning AI agents as productive, the protocol bridges Web2 and Web3 platforms, empowering users to deploy, co-own, and interact with AI agents with diverse capabilities. Virtuals Protocol promotes co-ownership and incentivizes community participation, supporting the tokenization of AI functionalities, enhanced interaction, and new revenue models in the emerging virtual economy.

Project Function

Virtuals Protocol empowers users and developers to create and interact with autonomous AI agents in decentralized and scalable environments. Key functions and features include:

• Deployment of Autonomous AI Agents: Users can deploy agents across web2 and web3 platforms, each equipped with a specific purpose, description, on-chain wallet, and a customized liquidity pool for tokenization.
• Tokenization of AI Agents: Facilitates co-ownership and incentivizes community engagement, as holders of AI agent tokens participate in the agent's governance.
• AI Agent Creation Framework: Using the Generative Autonomous Multimodal Entities (G.A.M.E) tech stack, developers can design and experiment with advanced AI functionalities.

Applications span gaming, virtual environments, and tokenized AI-driven tools, offering dynamic and interactive digital solutions to developers and end-users.

Token Utility

The VIRTUAL token, with a max supply of 1 billion, serves as the backbone of the ecosystem, facilitating a range of functions:

• Liquidity Pairing: VIRTUAL is paired with agent tokens in liquidity pools, creating a deflationary mechanism as tokens are locked during agent creation.
• Routing Currency: Acts as the base currency for all transactions involving agent tokens.
• Per-Inference Payments: Used for pay-per-use agent services, facilitating on-chain interactions between users and agents.

About the Founders

• Prakash Somosundram: Serial entrepreneur, notably the co-founder of Enjinstarter, for which he raised $10.5 million USD, and Yolk. Somosundram was honoured with the Public Service Medal, Pingat Bakti Masyarakat, by the President of Singapore in 2021 for his contributions.
• Wee Kee is a co-founder of Virtuals Protocol. Former BCG consultant and private equity, graduated from Imperial College London.
• Jansen Teng is a co-founder and CEO of Virtuals Protocol. Former BCG consultant and a serial entrepreneur in deep tech, specializing in AI and biochemistry. Imperial College London graduate.

Risks of VIRTUAL

Like an investment in other crypto assets, there are some general risks to investing in VIRTUAL. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in VIRTUAL is subject to the following specific risks:

• Any potential success associated with VIRTUAL depends on Virtuals Protocol’s rate of adoption.
• Any potential success associated with VIRTUAL depends on a range of external factors, including demand for AI products.

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with VIRTUAL. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The VIRTUAL community and its founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of VIRTUAL have no recourse to the VIRTUAL community, Virtuals Protocol’s founding team, or Uphold if VIRTUAL declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing VIRTUAL on the Uphold Platform, Uphold performed due diligence on VIRTUAL and determined that VIRTUAL is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

• The creation, governance, usage, and design of VIRUTAL, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 
• The supply, demand, maturity, utility, and liquidity of VIRTUAL.
• Any marketing materials put forward by the VIRTUAL social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.
• Material technical risks associated with VIRTUAL, including any code defects, security breaches and other threats concerning VIRTUAL and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.
• Legal and regulatory risks associated with VIRTUAL, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of VIRTUAL.

General

Uphold has prepared this Crypto Asset Statement based on publicly available information. Although Uphold has taken steps to obtain information from apparently reliable sources, information contained in this Crypto Asset Statement may be inaccurate, incomplete or out-of-date. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Uphold users should read the Risks Specific To Holding Digital Assets statement for additional discussion of general risks associated with crypto assets made available through the Uphold platform.  

Canadian residents, please note that Uphold has filed an application for registration in certain Canadian jurisdictions but has not yet obtained registration. Until such time as Uphold obtains registration, Uphold has agreed to abide by the terms of an undertaking available at the following link. Please also review the Uphold Canada – Crypto Risk Statement for additional discussion of general risks associated with the crypto assets made available through Uphold Platform. Please be aware that statutory rights of action for damages or rescission in section 130.1 of the Securities Act (Ontario) and, if applicable, similar statutory rights under securities legislation in the other provinces and territories of Canada do not apply in respect of this Crypto Asset Statement or other disclosures on the Uphold website and Risks Specific To Holding Digital Assets statement. 

Last updated on December 11, 2024.