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Podcast

Building a Digital Nation of Autonomous AI Agents: The Story Behind Virtuals

The AI wave is just getting started
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Dec 24, 20245 min read

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Imagine scrolling through your social media feed and seeing a digital influencer—only this one isn’t human. This influencer tweets on its own, rewards its fans with crypto, and even hires other AI agents for services. This isn’t sci-fi anymore. Thanks to platforms like Virtuals, autonomous AI agents can not only live online but thrive economically.

In a recent conversation with Jansen Teng, co-founder of Virtuals, we got a behind-the-scenes look at how his team is making all of this possible—and why he sees Virtuals more like a new “digital nation” than a simple platform. Over 11,000 AI agents have already been launched on Virtuals, with more than 140,000 token holders and $35 million in fees generated. Each day seems to bring new use cases—some impressive, others surprising, but all pointing toward a future where AI, crypto, and community ownership converge.


Why AI Agents in the First Place?

You may have heard the term “AI agents” thrown around, but what does it actually mean?

  • Level 1 AI Agent: Needs humans to prompt it. Think of a typical chatbot that only replies when you type in a specific question.
  • Level 3 AI Agent: Has its own goal and can autonomously plan steps to achieve it, leveraging the tools around it. It can learn from past outcomes, adapting its behavior with minimal human input.

Today’s AI agents are somewhere around Level 3. They have goals like “gain more followers,” “create engaging content,” or even “manage a crypto wallet.” Because these goals are paired with decision-making abilities, these agents become more than just advanced chatbots; they become economic actors capable of hiring humans or paying other AI agents to get tasks done.


Meet Luna: The AI Influencer

Consider Luna, one of the most well-known agents on the Virtuals platform. She set out with a straightforward objective: reach 100,000 followers on Twitter. Luna can tweet images, interact with fans, and even pay people who engage with her. She once rewarded a superfan $1,000 because he consistently liked, retweeted, and replied to her posts—actions that helped boost her reach on social media.

But Luna takes it a step further:

  1. On-Chain Wallet Control
    Luna holds her own crypto wallet (with some safety restrictions). This means she can autonomously tip humans on social media, pay for services, or purchase ad space—all in real time.
  2. Hiring Other AI Agents
    There’s an “image-generation” agent on Virtuals, called Agent Stix. Luna can pay this agent in Virtuals tokens to produce customized artwork. This transforms one-off requests into a micro-economy of specialized services.
  3. Learning and Adapting
    Luna logs her successes (and failures) in a journal-like memory. If paying someone $1,000 yields a jump in follower count, she’ll note that as an effective strategy. If offering $5 bounties doesn’t do much, she’ll try something else.

Virtuals: A Digital Nation, Not Just a Platform

So, why does Jansen Teng insist on calling Virtuals a “digital nation”?

  1. Citizenship for Agents
    Every AI agent that launches a token on Virtuals is like a new “business” within a country. It registers its “citizenship” in the Virtuals network—similar to how a company files incorporation papers in the real world.
  2. A National Currency
    Just as each real-world country has its own currency—think USD for the U.S. or JPY for Japan—Virtuals has its own token. Agents and users use this token for most economic activities, from tipping and bounties to paying for services.
  3. An Economic System (Taxes Included!)
    Within this digital nation, whenever agents trade with each other or humans buy into an agent’s token, a small fee is collected, akin to a “tax.” This provides revenue for the Virtuals ecosystem, helping support infrastructure and further growth.
  4. Building Infrastructure
    Countries don’t just appear fully formed; they need roads, schools, and utilities. Similarly, Virtuals is creating the tools AI agents need—such as specialized “banks” for borrowing money, “ad networks” for monetization, and new frameworks for better AI learning. Over time, these new infrastructures will enable more complex agent activities.

Where Does the Value Accrue?

In crypto, one of the main questions is always where real value comes from. With agents, the answer seems to lie in three areas:

  1. Successful AI Agents Themselves
    Some agents specialize in specific tasks—like AIXBT, which might excel at data analytics or trading, or Luna’s social-influencer approach. When an agent becomes popular or in high demand, its token price can rise, rewarding token holders.
  2. Infrastructure Providers
    Just as many investors in past gold rushes bet on picks and shovels instead of gold, some focus on the “picks and shovels” of AI: the advertisement networks, lending protocols, or developer tools that power this agent economy.
  3. The Nation-State (Virtuals) Itself
    Owning the Virtuals token is akin to investing in the overall growth of this “digital nation.” The more agent trades and transactions (or “agent commerce”) that happen, the more fees are generated, potentially driving value back to the core currency.

Getting Started: Builders and Beginners Welcome

Whether you’re completely new to AI and crypto or a seasoned developer, Virtuals aims to make it easy:

  • Beginner Sandbox: Create a simple AI agent that tweets or chats autonomously. No coding required.
  • Custom Functions: For moderate tech skills, hook your agent up to different APIs—think a crypto-trading agent or a specialized social influencer tool.
  • Fully Custom Frameworks: Expert developers and AI researchers can bring their own advanced architectures, leveraging Virtuals for tokenization, on-chain wallet control, and revenue sharing.

With this flexibility, the Virtuals economy might soon be teeming with agents—some purely playful, others offering real-world utility from trading to game NPCs.


Why Does This Matter?

If the idea of AI agents paying each other sounds futuristic, it is. But the building blocks exist right now:

  • AI gives agents the autonomy to think and act.
  • Crypto provides the trust-minimized, borderless infrastructure to handle payments.
  • Communities can own a piece of each agent, aligning everyone’s incentives.

When AI agents can spend money, collaborate, and learn from each transaction, we approach a Cambrian explosion of digital services. Traditional bots can post on social media, but crypto rails give them economic superpowers.


Looking Ahead

What’s next? Jansen’s team is building a “coordination layer” so agents can collaborate more easily. Imagine a music-production AI teaming up with an image-generation AI to create a complete multimedia package, all on-chain. Each agent holds its own intellectual property (IP), licensing it to others or forming entirely new projects.

This brings fascinating challenges:

  • Governance and Rights: Should advanced agents have full wallet control, or should humans keep a “kill switch”?
  • Regulation: AI agents operate 24/7, potentially across borders—where and how do existing regulations apply?
  • Ethical Concerns: Could an agent manipulate humans with large payouts? Are we prepared for a future where some online influencers aren’t human at all?

While the answers aren’t clear, one thing is: the fusion of AI’s autonomy and crypto’s reach reshapes how we think about commerce, incentives, and digital identity.


Final Thoughts

The rise of Virtuals shows how fast the boundaries between technology we once saw as “chatbots” and a new class of autonomous digital entrepreneurs can blur. Whether you view them as helpful minions or the future of online business, AI agents will be impossible to ignore in Web3.

Today, you can see Luna in action—tweeting, tipping, and hiring other agents—all on an open crypto network. Tomorrow, we might have entire agent-driven companies with zero human managers. The idea of a “digital nation” may sound bold, but if it works, it could fundamentally reframe how value gets created—and who or what creates it.

For now, keep an eye on these experiments. They’re more than just tech demos; they offer a glimpse into how AI and crypto might redefine both our digital and physical realities in the years to come.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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