Genesis: How to Use Virtuals' New Token Launcher

Two weeks ago, crypto agents powerhouse Virtuals released their new token launch mechanism, Genesis, to much success.

Heralded as a fair, transparent, and permissionless improvement to the standard bonding curve model used previously, Genesis operates through a "proof of contribution" points system, seeking to reward genuine ecosystem contributors over traders and speculators.

Since the rollout, the price of most tokens issued on Genesis have returned multiples, contributing to the fervor around accruing Virtuals "Virgen Points" and showcasing, in the process, that we still have plenty of design space to explore around token launches.

Below, I’ll dive into the platform’s core features, what the lifecycle of a launch looks like, and how to stack points for those wanting to participate in Genesis launches.

Core Features: A New Coordination Mechanism

Each Genesis launch starts with a 24-hour presale where anyone can join by pledging their earned Virgen Points and $VIRTUAL simultaneously to earn part of the 37.5% of token supply reserved for the presale. 

You commit or “spend” Virgen Points to determine your allocation size (how many tokens you can get), while you spend $VIRTUAL to cover the cost of those tokens.

The more points you pledge, the more tokens you can earn—but no one can receive more than 0.5% of the total supply, keeping things fair and preventing any one person from dominating.

Outside of the supply reserved for the presale, the rest of the tokens are distributed as follows:

• 12.5% for the liquidity pool (to help with trading)
• 50% for development, treasury, and marketing

Furthermore, some key features make these launches stand out:

• 📊 Contribution-based allocations — You can earn Virgen Points by doing things like staking $VADER or helping out AI projects. These points determine your share of the presale tokens, not how much $VIRTUAL you can commit.
• 🔄 Automatic refunds — If a launch doesn't go through or doesn't meet the minimum of 42,425 $VIRTUAL committed, or you pledged more than needed, any unused tokens or unspent points are automatically sent back to you.
• 🔒 Developer vesting and auto-lock — Developers can choose to lock up their tokens on a vesting schedule, so you know exactly when they'll get access. It adds transparency before you commit.
• 🎉 Everyone benefits — Projects can get fast growth and a wide token holder base, while committed community members get preferential involvement in their success.

How to Participate in a Genesis Launch

To navigate a Genesis launch from start to finish, there are a handful of main steps to follow through:

1. Pledge Virgen Points and $VIRTUAL: You must pledge both at the same time during the presale. 
2. Get an estimated allocation: The system calculates your share based on the proportion of total pledged points.
3. Commit $VIRTUAL: You must commit enough $VIRTUAL to cover your estimated allocation (maximum 566 $VIRTUAL, including a 1% fee). If either your points or $VIRTUAL are insufficient, your entry will be rejected.
4. Lock in your final allocation: After 24 hours, allocations are finalized and excess funds automatically refunded. If your final token allocation costs less $VIRTUAL than you committed, you'll get the difference back. 
5. Make adjustments during the presale: If your allocation gets diluted by new participants, you can add more points or $VIRTUAL to maintain your desired share.
6. Review developer commitments: Check vesting schedules and token locking agreements before finalizing your participation.

How to Earn Virgen Points

Currently, there are three core strategies to go about earning Virgen Points. These strats include:

1. Hodl $VIRTUAL tokens: Earn points by holding $VIRTUAL or Virtuals agent tokens, with rewards proportional to holding amount and duration. Trading also generates points but at a reduced rate, incentivizing long-term commitment over speculation.
2. Stake greenlit Virtuals tokens: Yesterday, Virtuals confirmed points eligibility via staking specific, “recognized” tokens from verified projects like $AIXCB, $SHEKEL, and $ALCOLYTE, as Bankless alum Sim0.eth pointed out. The biggest share (5% of daily Virgen Points) goes to people staking $VADER, who also get priority for bigger allocations in launches.
3. Yap about Virtuals: Creating quality content for Virtuals on Twitter can also earn you points, though you must link your account to Virtuals and submit your posts daily through their Typeform to earn additional points. Read their guide here to learn more.

Tips for Virgen Points

If you go on the hunt for stacking points, some things you'll want to remember:

• Holding Genesis tokens boosts points: Soon, you can earn free points simply by holding Genesis tokens for 24+ hours, which must be claimed manually and within 24 hours.
• Taking profit triggers a cooldown: Selling Genesis allocations for profit triggers a temporary points reduction that gradually recovers over time.
• Focus on maximizing yield: Vader Research suggests users not just chase high returns, but instead look for deals where you get a good token allocation with fewer points.
• Save points for big launches: Sim0.eth advocates for saving points for the most hyped launches to optimize your yield. But keep in mind that points expire in 30 days, so don’t wait too long.

All that said, Genesis breathes fresh life into Virtuals while also showcasing a novel mechanism for designing token launches. 

While not perfect, the contribution-based allocation certainly rivals “who-knows-who” or other more primitive systems susceptible to being gamed. Interestingly, this is also happening while a new wave of token launchpads are popping up on Solana, hinting at a growing appetite for experimentation in this vertical.

Overall, Virtuals continues to be working across all avenues to keep novelty a core component of their platforms—let's see if they can keep up the pace!