Ai16z Unveils a Plan to Revamp Its Tokenomics, Targets $100B Valuation

Ai16z, a venture capital firm run by AI agents, has shared a plan to overhaul its token economics to improve the value of its native token and position itself as a leader in decentralized AI.

A venture capital firm powered by AI agents, Ai16z, has unveiled a plan to overhaul its token economics. The move is aimed at enhancing the value of its native token and positioning the firm as a forerunner in decentralized AI.

The overhaul is deemed necessary as the company's Eliza framework, a tool that enables developers to create AI agents, has seen widespread adoption. However, the team feels that the native token lacks strong mechanisms to attain long-term value.

Key Details of the New ProposalA document detailing the tokenomics discussion reveals that the plan will be implemented in two phases, starting next year. Phase 1 will involve the creation of a launchpad in Q1 2025, similar to Pump.fun.

The Ai16z launchpad will serve as a platform for launching 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 will be able to trade that token for SOL at a small launch 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 that are enabled by Eliza's plugin architecture. The key in 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 states.

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 brought up the point that an L1 blockchain is how Ai16z can reach a valuation of $100 billion.

Earlier this year, Ai16z joined forces with Ryze Labs to launch AICombinator, an initiative that is backed by a $5 million fund. The program will enable developers to create novel projects that merge AI capabilities with cryptocurrency technologies.

According to CoinGecko, the AI16Z token is trading at $1.28 at press time, down 5% over the past 24 hours. Notably, the tokenomics overhaul comes as AI16Z hit a $1.5 billion market cap for the first time earlier this week.