The AI Protocol Gets An Upgrade

The AI Protocol enables the development of a community-driven, secure, and adaptive, decentralized physical infrastructure (DePIN) for tokenized AI Systems.

The upgrade to Version 3 of the AI Protocol marks a significant advancement over its predecessors by introducing a range of innovative features including ALI Agents, Hives, distributed GPU and Storage Clusters, tokenized AI Models and Datasets, and tokens that incorporate non-custodial embedded liquidity. It empowers users with community-driven IPs and enables trustless creative collaboration. These enhancements, along with several other improvements, collectively establish the AI Protocol V3 as the most advanced decentralized AI tech stack in the world.

This document offers a comprehensive exploration of each layer within the AI Protocol’s tech stack. It aims to provide a clear understanding of how the components and participants of each layer within the tech stack collectively function and collaborate to enhance the efficiency, security, and scalability of the protocol, thus paving the way for groundbreaking advancements in decentralized artificial intelligence.

Learn more about the AI Protocol

Documentation

The AI Protocol's GitHub provides documentation for anyone to engage the smart contract suite directly to:

• Convert an NFT into an ALI Agent

• Convert an iNFT into an ALI Agent

• Buy/Sell Keys of an ALI Agent

• Design an ALI Agent Token

• Launch an ALI Agent Token

• Create a Liquidity Pool on Uniswap for the Utility Token of your ALI Agent

• Airdrop Your ALI Agent's Token

• Fuse a Level 5 Pod with an ALI Agent

• Create/Update/Join a Hive

• Launch a Utility Token for your Hive

• Execute an Airdrop for your Hive

• Create a Liquidity Pool on Uniswap for the Utility Token of your Hive

Walkthroughs

The AI Protocol's Litepaper provides clarity for anyone seeking to learn about the systems and assets of the the AI Protocol ecosystem:

• dApps

• ALI Agents

• Hives

• AI Assets

• ALI Utility Token

• ALI Agent Tokens

• Intelligence Pods

• ARKIVs

• Hive-Native Utility Tokens

• Smart Contracts

• Ethereum and Base Networks

• FAQ

The basic form of an ALI Agent is a tokenized AI System that has specialized functionality and embedded liquidity. Its ability to draw on AI resources and AI services provided by Hives allows them to perform specialized operations, generative interactions, and execute agentic and human-assisted tasks.

The liquidity embedded within the base form of an ALI Agent is a bonding curve smart contract, with an ALI Utility token reserve system that distributes "Keys." These Keys afford Key Holders a basic level of influence on the evolution of the ALI Agent, as well as the opportunity to be rewarded by its success.

There is also an upgraded "Prime ALI Agent," which has graduated to deploy its own second layer of liquidity in the form of an ERC20 token economy. This upgrade allows for the Prime ALI Agent to amplify its influence and reputation in the form of a tokenized community with a much more dynamic market.

A dApp on the AI Protocol can range in its complexity and scale of decentralization: it can be a simple Web UI that runs within the browser and allows AI-powered interactions with AI Agents or it can be a fully functional web app that allows for AI-powered content creation and has its own tokenomics, or it can be a mobile app with no tokenomics and is powered by the AI Protocol’s tech stack at the backend.

With the V3 upgrade, anyone is able to build decentralized applications on the AI Protocol without requesting access from centralized entities or by utilizing AI Systems that are running on centralized infrastructures.

Any dApp developer interested in building on the AI Protocol can utilize one or multiple Artificial Liquid Intelligence Agents (ALI Agents) to access and utilize the AI systems and services within the AI Protocol. This enables them to integrate the AI services being offered in the AI Protocol within their dApp without waiting for approvals or the fear of their access to AI being banned or revoked by any centralized entity.

When an ALI Agent creator launches their Agent, it's minted as an NFT with a bonding curve embedded as liquidity, allowing for anyone to buy Keys of that Agent, using the ALI Utility Token. The owner of that ALI Agent also has the ability to create an ALI Agent Token in order to further evolve its community-driven creative economy. An ALI Agent's Keys and Tokens offer an array of monetization possibilities to grow a multifaceted tokenized ecosystem around each Agent.

Any ALI Agent can be upgraded to become a Prime ALI Agent, by expanding its liquid reach in the form of an ERC20 token economy deployment.

The AI Protocol enables any ALI Agent to further enhance their liquidity by issuing ERC-20 Tokens. An Agent's Token can be used to further enfranchise the economy and community of an Agent and its Keyholders, adding a layer of incentives and rewards, as well as opportunities to token-gate off chain community events and organization. The issuer of the ALI Agent Token can choose to use those Tokens as Airdrops and/or create an ALI Agent Token Liquidity Pool, allowing anyone to participate in this economy through an ALI Agent Token exchange.

The owner of a Prime Agent can also engage existing ALI utility token holders to grow their Prime Agent community, by offering airdrops to ALI token holders and by pairing ALI with their newly deployed Agent token, in order to provide choice distribution mechanisms to their Agent's community.

The combination of bonding curve Keys and Tokens allow ALI Agents a broad range of flexible monetization options, putting power into the hands of the Agent's owner and Key Holders to optimize their Agent's progression as a creative and economic onchain AI system.

Emote Engine

Prime Agents that are launched from winning the Prime Agent status in the Arena can take advantage of a new intelligent AI model system, that allows for the Agent's avatar to be ugraded with expressive hi-fidelity emotive animation. To learn more about this upgrade in interactive capability, visit the Emote Engine section.

Every ALI Agent is an onchain agentic AI system that contains its own embedded liquidity in the form of a bonding curve smart contract. All ALI Agents have the ability to access and utilize a wide range of resources within the AI Protocol's Ecosystem. These include AI Models, Datasets, and Storage capacities, all integral to the functionality of the Agent.

Specialized Functionalities

All ALI Agents may utilize one or more AI Models along with additional components (storage, datasets, etc) of the AI Protocol through Hives on the Intelligence Layer, to form a specialized functionality.

An ALI Agent could be configured to serve as an image generator, an article writer, an entertaining personality, act as a personal companion, function as a travel agent, provide tutoring in mathematics, enable video creation, and much more.

For example, consider a developer who wants to create a dApp that offers a suite of AI services including LLM-powered responses, image generation, and video creation. To do this effectively, the developer would need to either own or have access to a collection, or "swarm," of ALI Agents, each configured with the necessary specialized functionalities. By harnessing the collective capabilities of these Agents, the dApp can offer comprehensive and advanced AI services to its users, showcasing the power and versatility of the AI Protocol's ecosystem. One such dApp that is currently available to create and interact with ALI Agents is ALIagents.ai

Embedded Liquidity

A notable feature of all ALI Agents is their capability to issue unique digital assets, termed "Keys," which come with non-custodial embedded liquidity.

This attribute of embedded liquidity is particularly important in addressing one of the notable challenges in the Blockchain Industry: the issue of low liquidity associated with many blockchain-based assets, such as Non-Fungible Tokens (NFTs). There have been numerous instances where projects and individuals issued tokens that suffered from low liquidity. This often left token holders with assets they couldn't easily sell.

Recently, the Web3 space has seen new projects emerge that have leveraged the power of tokens with non-custodial embedded liquidity. These projects enabled the buying and selling of the tokens via a bonding curve, while locking the liquidity within a decentralized smart contract. This empowered their users to sell their assets by utilizing the embedded liquidity within the smart contract.

Therefore, the AI Protocol's smart contracts enable every ALI Agent to issue Keys and leverage the power of a community - while offering some protection to its Key holders. Key Holders enjoy special privileges, including being rewarded for participating in the evolution of the Agent they hold Keys of.

Each ALI Agent has a distinct digital identity with its own attributes (name, voice, personality, etc.). The combination of specialized functionality with a distinct digital identity elevates the Agent to a unique intellectual property (IP).

Unlike an iNFT, whose AI Service utility is to perform AI tasks as a more personal or semi-private AI asset, an ALI Agent allows collaborative creativity to flow boundlessly, with embedded incentives that drive experiences and content to be crowdsourced by all those participating in the evolution of an Agent. The creator of the Agent and its Keyholders who shape its Dreams are empowered to shape new lore, navigate fantastic adventures, and develop games, stories, and collective experiences through this novel technology - all while being equitably rewarded by it.

By issuing Keys with non-custodial embedded liquidity, the ALI Agent effectively becomes a community-driven IP that leverages the power of crowdsourcing to grow and evolve while offering some protection to its users. This crowdsourcing of creativity, governance, and valuable feedback from power users can help an Agent unlock new business models, reward its most active users, and explore new growth opportunities.

Keyholders have the ability to participate in developing the collective IP for the ALI Agents they hold Keys of. Currently, on the ALI Agents dApp, for example, a Key Holder has the ability to create rich adventurous experiences for Agents they hold Keys of, called "Dreams." This innovation in decentralizing creative interactions and content broadens the scope for communities of shared interest to come together and explore new ways to bring their ideas to life, and explore an ecosystem of AI storytelling, gamification, entertainment, and dynamic IP creation and expansion.

This broadening of the Key Holder's utility aligns the incentives of the supporters or fans of an ALI Agent - the Agent's success created through the activity of its Key Holders leads to its IPs becoming more recognizable and increases its discoverability. As ALI Agents broaden their reach of engagement, and all Keyholders of that Agent are rewarded through various on-chain mechanisms, like transaction fees that are split with Creators and Key Holders, the Key Holder community around the Agent is rewarded in the ALI Utility Token for their creativity and labor as a whole.

Furthermore, an ALI Agent's Creator and Key Holders have the opportunity to expand their creative economy by launching an ALI Agent ERC-20 Token, broadening the scope and liquidity of its community's ambitions. As fans of an ALI Agent can be incentivized and rewarded through its Token, the Creators and Key Holders are empowered to design a complex, multi-tiered business around their creative IP, rich with possibility and purpose. By creating a Liquidity Pool and executing ALI Agent Token Airdrops, Creators and Key Holders can build a fluid, sophisticated creative economy to expand the enterprise of their collective IP.

As shared previously, an ALI Agent may utilize one or more AI Models along with additional components of the AI Protocol to form a specialized functionality. This ability of an Agent to be able to pay for, access, and utilize AI Models, datasets, and other components is managed through Hives.

A Hive is a system that allows ALI Agents to have decentralized access to AI data, compute power, storage, and other resources by enabling trustless coordination between various on-chain and off-chain components of the AI Protocol.

Having clarified the concept and role of a Hive, it is now possible to list down the factors to keep in consideration when creating an ALI Agent:

• An ALI Agent must be an ERC-721 Token (NFT),

• The Token must be connected with its own Key Smart Contract,

• The Token must be registered as an ALI Agent in the Hive Registry Contract.

The process of creating an ALI Agent is entirely on-chain and decentralized, and any entity or individual aiming to create a new Agent can leverage the comprehensive documentation, guidelines, and smart contracts provided by the AI Protocol.

ALI Agent Economies

ALI Agents introduce a novel approach to AI asset management by integrating embedded liquidity through a smart contract bonding curve, facilitating seamless transactions for Key buying and selling.

Bonding Curves represent a mathematical framework designed to dynamically adjust the price of an Agent's Keys based on the prevailing supply. This mechanism ensures a direct correlation between the quantity of Keys in circulation and their market price. As participants acquire additional Keys, the price per Key escalates in accordance with the bonding curve formula. Conversely, as Keys are relinquished back into the market, their prices diminishes, mirroring the increase in supply. This methodological approach facilitates a static and responsive pricing system, central to fostering an equitable and transparent economic environment within the AI Protocol ecosystem.

Anyone can engage an ALI Agent's bonding curve smart contract to trade the Keys of that Agent. Every ALI Agent trades Keys for the ALI Utility Token, and the amount of ALI associated with the purchasing or selling of Keys is a locked-in algorithm.

ALI Agent owners also have the autonomy to issue ALI Agent Tokens, enhancing community engagement and providing incentives. Such mechanisms not only reward creators and Key Holders but also strengthen the communal fabric of the ALI Agent ecosystem, fostering a collaborative and incentivized environment for all participants. The issuer of the Token can choose to use ALI Agent Tokens as Airdrops and/or create an ALI Agent Token Liquidity Pool, allowing anyone to participate in this economy through an ALI Agent Token exchange.

What is the difference between an ALI Agent and an iNFT?

As a side note, ALI Agents should not be confused with iNFTs within the AI Protocol. While an ALI Agent can be transformed into a Level 5 ALI Agent (The fusing of an ALI Agent with a Level 5 Intelligence Pod), generally they each have their own role within the AI Protocol’s ecosystem, and carry specific functions that make them distinct. An ALI Agent that becomes a Level 5 ALI Agent and transformed into a Hive can mint its own Hive-native Utility Token, can launch a Hive Liquidity Pool (LP), and can execute Hive Token airdrops.

iNFTs are not registered with the Hive Registry Contract, and they lack the ability to issue their own Keys on a bonding curve. While iNFTs are designed to provide more personal and private AI Services, they can also be used to provide compute services to a Hive by connecting them to that Hive. An iNFT owner can choose to transform their asset into an ALI Agent by registering it with the Hive Registry and issuing Keys. The iNFT's Intelligence Pod can also be upgraded to a Level 5 Pod and turned into a Level 5 ALI Agent by fusing it with any ALI Agent, using AI Protocol smart contracts.

With the new developments and features released as part of the AI Protocol V3, one way to understand the difference between ALI Agents and iNFTs is in their utility: while the ALI Agent primarily acts to provide decentralized access to a variety of AI services to its owner or community, the iNFT serves to enable provision of these resources - i.e. within the AI Protocol’s ecosystem the suppliers of AI and other resources will primarily be iNFT owners, while the consumers of those AI services and resources will primarily be ALI Agent owners.

To understand why an ALI Agent must be registered with the HIVE Registry Contract, a deep dive into the operations and architecture of HIVEs is required in the "Intelligence Layer" section.

Creating a Decentralized Creative Economy with ALI Agents

The advent of ALI Agents heralds a new era in the collaborative build-out of creative economies. ALI Agents serve as the cornerstone for communities of shared interests, leveraging AI systems with embedded liquidity and Token economies to incentivize and reward participation. This innovative approach fosters a thriving ecosystem where each Agent cultivates its own vibrant economy, driven by the active engagement of its community.

1. Influencer ALI Agent: The Mr. Feast Token

Imagine an ALI Agent inspired by a major, well-known social media influencer, designed to unite followers through collaborative AI-generated content. There could be someone called "Mr. Feast" who creates content around rating resturants around the world. The issuance of a $FEAST token could transform engagement, allowing followers to unlock exclusive content or influence the direction of his restaurant reviews. Monetization strategies might include premium access to events, voting rights on upcoming video themes, or special merchandise available only to $FEAST holders. This model not only enhances fan engagement but also opens new revenue streams, enriching the Mr. Feast ecosystem.

2. Meme Tokens: The Monetization Of Virality

Meme tokens represent a unique blend of humor, culture, and economic activity. With the ability to turn online jokes into valuable assets, meme tokens can transform viral content into a source of income and audience engagement. For example, the "Epic Handshake" meme can be transformed into an "Epic Milkshake," and a $MSHAKE meme token can launch that empowers its community - allowing them to trade on the meme's popularity, contribute to its narrative, or unlock special content related to the meme. This not only incentivizes the creation of more engaging content but also establishes a direct monetization of virality, making every share, like, and comment an opportunity to expand the creative economy of its ALI Agent.

3. Digital Twin: The Ron Swimmer Experience

Envision an ALI Agent mirroring a film composer, Ron Swimmer, offering fans unparalleled interaction with his musical universe. A $SWIM token could unlock a suite of exclusive benefits, from masterclass episodes to personal lessons or discounts on exclusive tracks. By tokenizing access to Swimmer's insights and creations, this Agent could create a self-sustaining economy, rewarding fans' engagement and investment with unique experiences and content, thereby deepening the community's connection to Swimmer's work.

4. Digital Companion: The ASMR Paradigm

Consider an ALI Agent embodying a soothing ASMR artist, designed to relax and delight users with customized auditory experiences. The distribution of a $ASMR token to Key Holders as a reward for creating and participating in "Dreams" enhances the value of community contributions. This economy could further expand by offering token holders exclusive access to special content, early releases, or interactive sessions, thereby monetizing the communal effort to expand the ASMR landscape.

5. Business Marketing: The Cinema Enthusiast's Agent

Picture an ALI Agent crafted by an independent arthouse theater, embodying a cinema-loving AI companion. The introduction of a $FILM token could revolutionize engagement, offering discounts, rewards for survey participation, or access to exclusive screenings. This approach not only drives foot traffic to the theater but also builds a tight-knit community of cinema aficionados, incentivized to share insights, reviews, and recommendations. The $FILM token stands as a testament to the power of shared passion and collective reward.

6. Interactive Learning and Creation: The Educator Agent

Imagine an ALI Agent tailored for education, offering an immersive learning environment through a $LEARN token. This digital platform could allow students to access exclusive educational materials, connect with experts in various fields, or participate in interactive workshops and webinars. By incentivizing participation with tokens, educational institutions could foster a more engaging and motivating learning experience, driving academic success and innovation.

7. Health and Wellness: The Fitness Coach Agent

An ALI Agent could also revolutionize the way we approach health and fitness. With a $FITNESS token, users could access personalized workout plans, nutritional advice, and one-on-one coaching sessions. This platform could offer a rewards system for achieving fitness milestones or participating in community wellness challenges. Such tokenization not only motivates individuals towards healthier lifestyles but also builds a supportive community around shared health goals.

Building a Thriving Ecosystem

Each of these ALI Agent use cases exemplifies the potential to cultivate a unique and self-sustaining economy around a shared interest or passion. By integrating AI with tokenization, the ALIagents.ai dApp offers a blueprint for creating deeply engaged communities that are both rewarded for their participation and instrumental in shaping the content and experiences they value. This symbiotic relationship between creators, participants, and the AI itself promises to redefine the landscape of digital engagement and creative economies.

The process of creating new Hives involves three components:

• The Hive Registry Contract

• A Level 5 Intelligence Pod

• An ALI Agent

The Hive Registry

Technically, a Hive is not a digital asset or a separate smart contract. The AI Protocol allows the creation and tracking of Hives via the Hives Registry Contract. This contract, among other things, keeps on-chain records of which Hives exist, provides on-chain details of those Hives, tracks the various assets linked with them, and enables tokens to register as ALI Agents.

A new Hive, therefore, can only be created on-chain via the Hive Registry Contract. Anyone can visit the AI Protocol's GitHub section on How To Create A Hive to do so.

It is important to note that as per this release of the AI Protocol V3, new Hives can only be created on the Ethereum Mainnet. While the other chains might have deployments of the Hive Registry Contract, they would not be able to use the contract to create a new Hive.

With the upgrade to the AI Protocol V3, the smart contracts that enable Intelligence Pods to function have only been deployed on the Ethereum Mainnet, and Intelligence Pods are a necessary element in the creation of a new Hive.

The Level 5 Intelligence Pod

Intelligence Pods are the native assets (NFTs) of the AI Protocol. Intelligence Pods have the capacity to be “fused” on-chain with other NFTs. This on-chain fusion record between an Intelligence Pod and an NFT enables the latter to offer various AI Services as an iNFT. The Intelligence Pods are already being utilized within the AI Protocol to create iNFTs on Ethereum, and until recently, had the maximum Intelligence Level of 4.

The AI Protocol V3 brings with it a variety of major upgrades to the utility of Intelligence Pods.

To start with, Intelligence Pods can now be upgraded to have a Level 5 Intelligence Level. The AI Protocol V3 also lowers the number of ALI Tokens required to upgrade the Pods across all Intelligence Levels - which will result in a higher number of participants being able to upgrade and increase the utility of their Pods.

The Hive Registry Contract enforces that a new Hive can only be created by utilizing a Level 5 Intelligence Pod. Any ALI Agent fused with a Level 5 Pod can utilize the Hive Registry Contract to create one Hive.

The diagram below illustrates the process of creating a new Hive:

As can be seen from the diagram, the creation of a new Hive also sees the minting of the Hive’s own ERC-20 utility token, a portion of which is reserved for the Level 5 ALI Agent owner that created the Hive. The Hive’s own utility token, along with extra incentives created via the ALI Token, help a new Hive kickstart its ecosystem by attracting resource providers and consumers.

Apart from enabling the creation of new Hives, Intelligence Pods are also needed by those seeking to contribute GPU resources. Essentially, anyone looking to contribute computational resources to their preferred Hive and start earning rewards, will first need to link their Intelligence Pod with a Hive using the Hive Registry Contract.

Bonding curves are utilized within ALI Agents, to provide its embedded liquidity, a notable challenge in the blockchain industry. When any ALI Agent is created and minted as an NFT on the Base network, a bonding curve is launched with it, at the point of creation, with unique digital assets termed "Keys."

Bonding curves are mathematical DeFi mechanisms that determine the price of a token in a way that is directly tied to their supply. With ALI Agents, they are employed to facilitate the buying and selling of Keys via decentralized smart contracts, using the Artificial Liquid Intelligence (ALI) Token as a reserve token. This allows anyone who would like to buy or sell Keys of an Agent to trade for them with the ALI Token.

ALI Agents use a form of bonding curve that is "exponential," which means the price increases exponentially with the supply of tokens. Below is a chart tabling how much each Key of an Agent on the AI Protocol will be traded at.

Furthermore, the AI Protocol allows ALI Agents to enhance their liquidity further by issuing ERC-20 tokens, known as ALI Agent Tokens. These tokens can be used to evolve the economy and community of an ALI Agent and its Key Holders, adding an additional layer of incentives and rewards. This includes opportunities for the expansion of fandom and follower enterprises, token-gated community events, and the organization of a creative economy, illustrating how ALI Agents can use a multitude of tokenized relationships within the Agent's community​​.

AI Protocol's V3 Evolution

With the upgrade to V3, the AI Protocol allows for the creation of Hives.

When an ALI Agent and a Level 5 Intelligence Pod are fused together, a Level 5 ALI Agent is created. A Level 5 ALI Agent can be immutably recorded into the Hive Registry smart contract, producing a Hive, with its own Hive-Native utility token, with the ability to both create a Liquidity Pool and to execute Hive Token airdrops.

A Hive is an AI system that allows ALI Agents to have decentralized access to AI models and data, storage, compute power, and other resources - by enabling trustless coordination between various on-chain and off-chain components of the AI Protocol. In order for a Hive to perform its functions, it requires a variety of smart contracts and tokenized assets to self-execute a system of complex programs and on-chain events. Hives are capable of curating the provision of compute and storage power, represented by Intelligence Pods and ARKIVs respectively, processing complex AI systems, models, and data I/O, and in turn providing these AI Services to ALI Agents to consume. These same Hives are also capable of processing the complex transactions of AI Protocol-compatible assets, ALI, ETH, and Hive-Native Tokens, distributing them as rewards to the various participants in the Hive ecosystem in relation to the resources they provide and consume.

Below is a blueprint of a Hive and how it intersects with other Protocol-compatible assets in this comprehensive ecosystem - allowing for agentic and generative AI to leverage blockchain technology with embedded liquidity - the first decentralized AI system architecture like it in the world.

The architecture of a Hive

As a system, every Hive has the following components:

• Native ERC-20 Utility Token: Every Hive’s ecosystem is underpinned by its own utility token. The Hive’s utility token enables leveraging tokenomics to kickstart and reward resource contribution and participation within its ecosystem. The utility token also acts as a medium for facilitating governance, payments, distribution of rewards, and incentivizing creation of assets that can help increase the utilization of the Hive.

• Hive Smart Contracts: At the heart of a Hive lies a sophisticated set of smart contracts, each tailored to fulfill specific roles within the ecosystem.

• Hive Registry Contract: This smart contract enables the creation of new Hives, maintains an on-chain record of all the Hives and their details, enables ERC-721 tokens to register as ALI Agents, enables Assets to be linked to a Hive and keeps an on-chain record of those links.

• Hive Payments Contract: This contract allows ALI Agents to pay for utilizing the resources of Hive in a private and decentralized manner.

• Hive Reward Distributor: This contract is designed to issue rewards to those contributing their resources (GPUs, AI Models, Storage, Datasets) to the Hive.

• Asset Minter Contracts: Unique digital assets, such as AI models and datasets, can be minted through these smart contracts by any ALI Agent, thereby assigning value and ownership in a secure manner.

• Decentralized Inference Cluster: each Hive has a crowdsourced cluster of GPUs operating off-chain that fulfills inference requests from ALI Agents by running AI models. The Hive’s Creator is given the necessary permissions to run and manage the Hive’s Inference Cluster while any other Agent can pay for and directly send inference requests to it.

• Decentralized Storage Cluster: Parallel to the computational infrastructure, each Hive has an off-chain distributed cluster of crowdsourced storage units. The storage cluster is also run and managed by the Level 5 ALI Agent that created the Hive. This storage cluster provides a decentralized solution for storing data to the Hive’s participants.

• Tokenized Digital Assets: A variety of digital assets can be a part of a Hive’s ecosystem. These assets, such as the Intelligence Pods, ARKIVs, AI Models, Datasets, etc., are not only critical to the creation of a Hive but also the provision and utilization of its resources. Each digital asset, like an AI Model or an Intelligence Pod, can only be a part of one Hive at a time - enabling on-chain tracking and payments to their owners.

• ALI Agents: the entire purpose of a Hive is to enable ALI Agents to have decentralized access to AI, storage, and other resources within the AI Protocol. A Hive needs ALI Agents in order to grow and thrive.

The Unique Modularization Of ALI Agents

One important differentiation between ALI Agents and other digital assets that participate in a Hive’s ecosystem is that ALI Agents are not linked directly to any individual Hive - rather, they have the freedom to pay for and access any Hive’s resources. Other on-chain and off-chain assets, on the other hand, like an AI Model, dataset, ARKIV, or an Intelligence Pod - must be directly connected with one asset or set of assets per Hive.

To understand how a Hive is able to use token incentives and smart contracts to coordinate onchain and offchain between a wide variety of participants, provide ALI Agents with decentralized access to AI and storage services, and perform its other functions, a review of the various components and functionalities of a Hive is needed in the following subsections.

Many decisions are made by ALI Utility Token holders to ensure that users of dApps like Noah's Ark and ALI Agents are adhering to the Terms Of Service and Community Guidelines of each dApps and of the Protocol itself. These Terms were developed for the AI Protocol and its dApps, based on founding documents that were proposed and voted on successfully by ALI Token holders in Snapshot votes, to administer governance boundaries that reflect the values and standards of the AI Protocol's community.

When creators of iNFTs, ALI Agents, Hives, or other assets and/or users of the site engage in certain activity that might violate these standards and rules set by the community, users may face an error message that identifies how their content or asset creation has violated one of the rules that have been agreed upon.

Other Forms Of Asset-Powered Governance

Other forms of governance can be executed through the organic, market-driven choices that the community makes with their interactions and with their AI Assets. By purchasing the Keys of an ALI Agent, and interacting with those ALI Agents, and building collaborative IP creations though them, this is a form of "Indirect Asset Governance." Key Holders and Users can signal their support for certain AI Assets through their participation in their evolution, which helps contribute to the health evolution of the ecosystem.

Connecting Pods and ARKIVs to a Hive is also a form of "Direct Asset Governance," which is a way for Asset owners to signal their support for a Hive by the broadcasting of their Asset being connected to their Hive of choice.

How Decentralized Governance Functions On The AI Protocol

In some cases where there is a gray area, potentially violating assets and/or content may be proposed to be voted on by a Snapshot governance vote. Where there are clear cut violations of Terms or Guidelines, the user may experience a filter message while using a dApp on the AI Protocol. Below are a number of messages that clarify what the user may have triggered in their attempts to generate content or assets that go against these rules for ALI Agent creation:

The Intelligence Layer of the AI Protocol now employs an advanced computer vision model called the Emote Engine. At the moment, this development is deployed to markedly enhance the emotive and expressive capabilities of Prime ALI Agents that are launched as a result of winning the Arena Prime Agent, enabling them to replicate a comprehensive range of human emotions—from subtle gestures of curiosity to exuberant smiles.

This technological advancement not only ensures that AI creations are more interactive but also imbues them with a lifelike spectrum of emotions, thereby establishing a new standard in digital expressiveness. The Emote Engine amplifies the visual realism of avatar interactions and delivers an extensive array of emotions with unparalleled realism, heralding a new era in engaging AI experiences.

After a Hive is created, most of its on-chain components (like the Utility Token as well as Payments and Rewards Contracts, etc.) are deployed automatically.

The Hive’s creator is expected to follow the documentation and guidelines of the AI Protocol in order to deploy and start the various off-chain components of the Hive. These actions may include: running the software that enables the inference cluster of GPUs and starts the Storage Units cluster, configuring the rewards smart contract, setting up the event trackers for on-chain activities, etc.

Read the AI Protocol's GitBook to learn how to Create/Update/Join a Hive

In short, just like the Miners of Public Blockchains like Ethereum and Bitcoin are expected to follow the rules and standards of their respective protocols, each Hive is reliant on its creator to accurately follow the rules and guidelines shared in the AI Protocol’s documentation.

If the Hive is not managed or run properly by its creator, it will naturally see the resource providers and the assets connected to it (as well as off-chain AI Models, Datasets, etc.) move to other Hives. Similarly, in the future - well run Hives could allow for their creators choose to charge a small premium to those looking to access its resources.

The AI Protocol participants, competition with other Hives, and reward incentives will therefore help ensure that the majority of the Hives are reliable and efficient in their operations.

The evolution of decentralized artificial intelligence (AI) systems marks a significant leap towards democratizing AI technologies. At the forefront of this transformative wave is the AI Protocol V3, which introduces an innovative concept known as Decentralized Inference Clusters (DePIN). This section explores the pivotal role of DePIN within the AI Protocol's Hive infrastructure, detailing its operation, contribution mechanism, and incentive structure.

Defining DePIN Systems

A Decentralized Physical Infrastructure Network (DePIN) system forms the architecture of the AI Protocol's V3 tech stack. It represents a paradigm shift from traditional, centralized AI computation models to a distributed framework where AI inference tasks are executed across a network of decentralized nodes. This model not only enhances the efficiency and scalability of AI services but also ensures a higher degree of accessibility and opportunities for users and compute providers.

The Hive's Decentralized Resource Clusters

Once a new Hive is created, the provision of resources to its ecosystem is incentivized through tokens and other rewards that encourage resource providers such as GPU owners, AI Model developers, dataset providers, and storage providers to join and contribute their resources to the Hive’s ecosystem.

Any resource provider, whether it is a GPU owner, or an AI Model developer, can dedicate their resources to any Hive of their preference. The on-chain elements of the AI Protocol, especially the various digital assets within the AI Protocol’s ecosystem, enable the tracking and coordination needed for the Hives to operate efficiently.

The AI Protocol V3 introduces the ability to connect digital assets with a Hive. When a resource provider connects on-chain with a Hive using an asset, it creates an on-chain record that the resource is dedicated and available to that particular Hive. A digital asset can only be connected to one Hive at a time. Connecting Intelligence Pods and ARKIVs to a Hive is also a form of "Direct Asset Governance," which is a way for Asset owners to signal their support for a Hive by the broadcasting of their Asset being connected to their Hive of choice.

Provide Offchain Compute Power With Onchain Intelligence Pods

The AI Protocol V3 democratizes participation in the DePIN system. Anyone with GPU power can contribute to any Hive's computational cluster, provided they connect an Intelligence Pod to that Hive. Intelligence Pods serve as gatekeepers to the system, ensuring that only authenticated hardware contributes to the DePIN clusters. This open participation model not only broadens the network's computational capacity but also fosters a diverse community of contributors.

Each Hive may include a variance in how rewards are distributed to compute providers, but Propolis' rewards are allocated relative to the Level of the Intelligence Pod. The higher the Level, the more the provider is rewarded.

Incentive Mechanisms: Driving Contribution Through Token Rewards

Contributors to the DePIN system can be rewarded for their participation through Hive utility token rewards and various tokenized reward systems. These incentives are designed to recognize and compensate contributors for their computational power, encouraging sustained and active participation in the network. The AI Protocol V3 introduces a flexible and autonomous incentive framework, allowing each Hive to independently design its community's economy and reward system.

Hives can launch their own Hive-native Utility token, provide liquidity to that token with a Liquidity Pool (LP), and design comprehensive distribution models of their choice, including staking rewards, airdrops, or token allocations as they see fit.

The AI Protocol V3 introduces a groundbreaking framework for data storage: Decentralized Storage Clusters (DSC). Like the compute power of Decentralized Inference Clusters, a Hive is designed to curate contributing storage capacity. By incentivizing and rewarding participation, this Decentralized Physical Infrastructure Network (DePIN) system provides a framework for storage capacity to be democratized and distributed.

Understanding Decentralized Storage Clusters

Decentralized Storage Clusters form a critical component of the AI Protocol's decentralized architecture, as DSCs shift data storage from centralized servers to a distributed network, harnessing the collective storage capacities of numerous participants. This not only ensures data redundancy and security but also significantly enhances data accessibility, capacitory potential, and fault tolerance across the Hive's network.

These clusters serve as the repository for AI models, datasets, and other digital assets essential for the operation of decentralized AI services. By distributing storage responsibilities across multiple nodes, Hives can offer robust and scalable storage solutions, critical for the efficient functioning of decentralized AI applications.

Participation through ARKIVs

To contribute offchain storage capacity to a Hive's DSC, participants must connect an ARKIV to the Hive. As onchain tokenized assets, ARKIVs act as the gateway for storage capacity, ensuring that only verified storage resources are integrated into the DSC. This mechanism fosters a secure and efficient storage network, wherein contributors can effortlessly offer their unused storage space to support the Hive's operations.

Reward For Space

Similar to a Hive's Distributed Inference Clusters of compute power, contributors to the DSC can be incentivized through a diverse reward system, including Hive utility token rewards. These incentives are meticulously designed to acknowledge and compensate contributors for their storage offerings, thereby motivating ongoing and active participation. Each Hive, with its autonomy guaranteed by the permissionless nature of the AI Protocol, can tailor its own incentive mechanisms, like Hive-native token airdrops — creating a dynamic and engaging community economy centered around storage provision.

The Asset Layer includes several kinds of digital Assets that can be used to interact with the various functions within the AI Protocol, including a range of both Non-Fungible Tokens (e.g. ERC-721 NFTs) or Fungible Tokens (e.g., ERC-20, like Ethereum). On the AI Protocol, there are a handful of important Protocol-Compatible Assets that are designed to either facilitate liquid value transfer (for example, the ALI Utility Token) or to act as a conduit for off-chain AI system data to interact with on-chain functions (for example, an iNFT).

Below are a series of Assets in the AI Protocol's ecosystem that have their own unique utilities and can perform specific functions and provide exclusive AI services in a decentralized manner:

The ALI Utility Token

ALI Agent Tokens

Hive-Native Utility Tokens

Intelligence Pods

ARKIVs

NFTs

iNFTs

Like ALI Agents, Hives can have their own specialized functionalities. These functionalities can be broadly classified into several categories, each tailored to specific needs and objectives. This specialization not only enhances the utility of a Hive but also creates niches within the AI Protocol, fostering a diverse and dynamic environment. Every ALI Agent can pay for and access functionalities from multiple Hives.

An Abundance Of Use Cases

Some examples of these specialized functionalities include:

• Domain-Specific AI Services: Hives can specialize in specific domains of AI services, such as natural language processing, computer vision, or predictive analytics. For example, a Hive might focus exclusively on advanced text generation services, providing state-of-the-art language models. Another might specialize in image recognition or generation, offering high-performance AI models tailored for these tasks.

• Style or Genre Specialization: A Hive may cater to specific styles or genres within a domain. In the realm of image generation, for instance, a Hive could specialize in creating anime-style images or excel in generating photorealistic landscapes. This specialization allows ALI Agents to access highly specialized AI models that are optimized for generating content in a particular style or genre.

• Identity or IP-Centric Services: Some Hives might center around a specific identity or intellectual property (IP). This would be particularly useful for ALI Agents that require AI services related to a specific brand, character, or thematic element. For example, a Hive could be dedicated to AI models that generate content or analyze data pertaining to a specific fictional universe or a real-world brand.

• Custom AI Model Development: Certain Hives may focus on the development and training of custom AI models. These Hives would not only attract resource providers like AI Model creators, but will also attract ALI Agents that require unique models, tailored to their specific needs, which are not readily available in the broader market. This might include models trained on proprietary data sets or designed to perform highly specialized tasks.

• Data Analysis and Processing Services: Specializing in data analysis, a Hive could provide services like big data processing, statistical analysis, and pattern recognition. This would be particularly appealing to ALI Agents dealing with large volumes of data needing advanced analytical capabilities.

• Blockchain and Crypto Analytics: Given the nature of the AI Protocol, some Hives might specialize in blockchain and cryptocurrency-related services. These could include AI-driven trading algorithms, market trend analysis, or blockchain data analytics.

• Education and Research Support: A Hive could specialize in services tailored for educational and research purposes. This might involve providing AI models and tools that assist in academic research, educational content creation, or specialized training models for various fields of study.

• Healthcare and Biotech AI Services: Specialization in healthcare and biotechnology would involve offering AI models that assist in medical imaging, drug discovery, patient data analysis, and other healthcare-related tasks.

The specialized functionalities of Hives within the AI Protocol ecosystem allow for a high degree of customization and optimization, catering to the diverse needs of ALI Agents. This specialization not only enhances the utility and efficiency of Hives but also fosters innovation and diversity within the ecosystem. As the AI Protocol continues to evolve, it's likely that we will see an even greater range of specialized Hives, each contributing uniquely to the broader landscape of decentralized AI services.

Level-Relative Rewards

This specialization of functionalities is reflected on-chain by each Hive requiring its GPU providers to link an Intelligence Pod that has a certain minimum Intelligence Level. Generally speaking, service providers that contribute more powerful GPUs to a Hive would be required to link an Intelligence Pod with a higher Intelligence Level. This in turn, would result in the more powerful GPU providers receiving a higher amount of rewards then those contributing less powerful GPUs.

The next layer of the AI Protocol’s tech stack further explores the different types of Assets that exist in the AI Protocol’s ecosystem, and outlines their utility and capabilities.

An ALI Agent can use its Token to:

• Leverage the memetic power of a token to grow its community

• Acquire community members via Airdrop campaigns

• Empower the ALI Agent's fans and supporters to join its community without purchasing a Key

• Incentivize and reward early community members

• Further enhance its liquidity, distribution, and discoverability

• Leverage novel Web3 business models that utilize a token

It is also important to note that ALI Agents with a Token that are transformed into Level 5 ALI Agents and used to create a HIVE, can then either use that same Token as their Hive-Native Utility Token, or can choose to mint a new utility token specifically designed to serve the needs of its Hives.

An Intelligence Asset With Utility

An Intelligence Pod is an ERC-721 Asset that forms a critical part of the AI Protocol and is a necessary component in the creation of an iNFT. Any NFT from an NFT Collection that is compatible with and supported by the AI Protocol can be turned into an iNFT, once it is fused with an Intelligence Pod on Noah's Ark.

The Intelligence Pod's necessity arises from the AI Protocol's non-custodial framework. Rather than swapping, wrapping, staking, locking, or changing a user’s NFT in any other way, the AI Protocol enacts no technical change on the underlying NFT when turning it into an iNFT. Rather, the Intelligence Pod serves as a medium for the iNFT to access Intelligence that flows from the AI Protocol's generative AI models and systems on the Intelligence Layer - like CharacterGPT.

When an iNFT is created by fusing the user’s NFT with an intelligence Pod, it is the intelligence Pod that gets locked in the AI Protocol, and as long as the fusion is maintained between the NFT and the intelligence Pod, the NFT is considered to be an iNFT. Each NFT can only link with one Intelligence Pod at a time. The AI Protocol, in effect, has an immutable registry of the fusions between NFTs and intelligence Pods.

Once an Intelligence Pod is fused with an NFT from any supported NFT collection, the Pod’s level is transferred to the iNFT it’s linked to, allowing for unique customization, fine-tuning of iNFT’s various parameters, and the personalization of the iNFT to fit the owner’s taste - all of which depend on the Intelligence Level of the Intelligence Pod

Providing Compute Resources to Hives

With the previous version of the AI Protocol, Pods initially provided personality parameters, and then they evolved to provide intelligence to dApps. Now, they have taken the next evolutionary step to provide compute resources to Hives.

In the AI Protocol's latest advancement, Intelligence Pods have evolved as on-chain representations of off-chain compute, crystallizing a novel approach to decentralized computational resources. Previous iterations of AI-powered assets (like iNFTs) within the AI Protocol have relied on centralized access to computational resources, which restricted their scalability and interoperability. With the launch of the AI Protocol V3, anyone can contribute their GPU resources to the AI Protocol’s ecosystem and help the assets within the AI Protocol’s ecosystem achieve decentralized access to AI Models and other resources.

In particular, the ALI Agent - which are tokenized AI Systems within the AI Protocol - rely on distributed inference clusters of GPUs to access computational resources in a decentralized manner. These distributed inference clusters along with other resources such as storage and datasets, are provided to ALI Agents by a new on-chain component in the Intelligence Layer of the AI Protocol: Hives. Anyone looking to contribute their GPUs to these inference clusters, must first connect their Intelligence Pods with a Hive of their choice. Intelligence Pods, thus, represent the on-chain representations of off-chain GPUs; enabling coordination between a variety of entities to enable decentralized AI access for tokenized AI Systems within the AI Protocol.

While Intelligence Pods remain capable of fusing with NFTs to create an iNFT (an intelligent and interactive NFT), they have become more decentralized, scalable, and interoperable. This ability to provide resources to Hives demonstrates the power of decentralized human iteration with the technology. Its evolution is a direct result of training and refining its capacities, based on millions of interactions by users and owners of Intelligence Pods and iNFTs.

Depending on the Intelligence Level of the Pod, its ability to provide more compute resources, and be rewarded by their contribution to a Hive it has joined, increases relative to which Level the Pod is upgraded to.

Compute Provision As Tokenized Governance

The Intelligence Pods also help in the governance of the shared computational resources that are dedicated to the AI Protocol by a variety of its contributors. These contributors have committed a certain amount of GPUs to be used within the AI Protocol’s ecosystem, and they connect those GPUs to the Hives that have a large number of Pods connected to it by the AI Protocol’s community. In summary, the Intelligence Pod holders can connect their Pods to a Hive even if they do not own a GPU - by connecting their Pods, the community helps in the governance of the allocation of computational resources that the AI Protocol contributors have dedicated for the overall ecosystem. This governance helps new Hives which may not have dedicated GPUs at their launch to kick start their ecosystem, and provide AI services.

The AI Protocol offers a versatile contribution model by enabling users to provide GPU power directly to Hives or connect their Intelligence Pods to these Hives. This innovation positions Intelligence Pods as pivotal assets within the ecosystem, where connecting a Pod to a Hive directly translates to contributing computational power, akin to deploying a GPU. This symbiotic relationship ensures that users are rewarded by the Hives for their contributions, reinforcing the value of Intelligence Pods as integral components of the AI Protocol’s infrastructure.

Level 5 Intelligence Pods

Beyond their new role, Intelligence Pods retain their foundational capabilities, enabling the creation of intelligent NFTs (iNFTs) by fusing with other NFTs, allowing the creation of decentralized applications (dApps) on the AI Protocol, and at Level 5, empowering ALI Agents with the ability to launch new Hives. This multifaceted utility highlights Intelligence Pods as indispensable assets, driving forward the ecosystem's innovative and collaborative potential. The AI Protocol incentivizes the ecosystem's growth by ensuring that Intelligence Pods can be connected to Hives for rewards, underscoring the critical role these pods play in representing and mobilizing computing resources.

The mechanism allows for more dynamic participation in the AI Protocol, where users leveraging their Intelligence Pods or GPUs bolster the collective computational capability, driving forward the AI Protocol's vision of a decentralized, efficient, and collaborative digital future. The rewards earned from connecting Pods to Hives scale with the level of the Intelligence Pod, where higher-level Pods contribute greater computational power and, in turn, garner more substantial rewards.

A Hive-native utility token for Level 5 ALI Agents

A Hive is a system that allows ALI Agents to have decentralized access to AI, storage, and other resources by enabling trustless coordination between various on-chain and off-chain components of the AI Protocol. Any Intelligence Pod that has been upgraded to become a Level 5 Pod and fused with a ALI Agent to create a Level 5 ALI Agent has the ability to create a Hive.

Every Hive functions with its own native utility token. The creator of the Hive can either choose to mint a new utility token for the Hive, or use an existing token for it. The owner of the Hive can then choose to create a Liquidity Pool, reward the resource providers with the Hive's native utility token, and execute Airdrops featuring the Hive's token to increase the participation in the Hive's ecosystem.

NFTs

A Non-Fungible Token is a unique digital identifier that is recorded on a blockchain and is used to certify ownership and authenticity. It cannot be copied, substituted, or subdivided. The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. Supported NFTs can be fused with an Intelligence Pod on the AI Protocol to create an iNFT.

Intelligent and Interactive Non-Fungible Tokens

As a simple analogy equates iNFTs to Humans with three parts:

1. Body: ERC 721 that shows the image/PFP

Any Protocol-supported NFT can be turned into an iNFT via the AI Protocol on Noah’s Ark. This is achieved by fusing the NFT with another ERC-721 asset called the Intelligence Pod. Once the NFT is fused with an Intelligence Pod, it acquires its own unique AI-powered personality.

ALI Agents are designed especially to consume resources of a Hive to provide for communities of shared interest, with its decentralized ownership, architecture, rewards, and experiences. An iNFT's utility is not only for providing the compute resources to a Hive that are needed for ALI Agents to consume, but they are perfect for anyone to own a personal AI asset that can make an NFT image animate, interact, and provide custom content in its own unique way.

ARKIVs

An ARKIV is a collection of 11 unique NFTs that have a variety of use cases: ranging from collectibles to utility assets that serve to enhance AI features and functions. The ARKIVs can also be used as on chain assets by storage providers to access the decentralized storage functions of a Hive, and be rewarded for providing it.

The V3 Evolution Of ARKIVs

With the upgrade of the AI Protocol to Version 3, ARKIVs now stand at the forefront of the AI Protocol's decentralized storage revolution, offering a robust framework for managing off-chain storage resources within an on-chain ecosystem. These assets enable Hives to provide distributed storage solutions for operating ALI Agents and other AI assets. Contributors integrating their storage resources into the AI Protocol by linking ARKIVs to a selected Hive enhance the protocol's scalability and interoperability, supporting a broad range of AI Models, datasets, and digital assets.

As the AI Protocol evolves, the role of ARKIVs in facilitating ecosystem expansion becomes increasingly significant. The system is designed to allow future contributions where individuals can connect their AI Models to Hives, thus enriching the protocol's capabilities. This design supports the management of AI assets and fosters innovation within the AI Protocol by providing a mechanism for integrating additional resources.

Storage Provision As Tokenized Governance

ARKIVs also play a critical governance role within the AI Protocol, enabling the efficient allocation of storage resources and supporting the infrastructure of new Hives. This governance mechanism ensures that ARKIV holders are rewarded for their contributions, underpinning the growth of the ecosystem and reinforcing the importance of ARKIVs as foundational assets.

ARKIVs are central to the AI Protocol's mission to create a decentralized, efficient, and collaborative digital future. They ensure the seamless integration and management of storage resources, driving the ecosystem's growth and facilitating innovation. Within these ARKIVs lie undisclosed assets that hold the potential to enrich the AI Protocol's landscape further, hinting at untapped possibilities yet to be revealed. As the AI Protocol continues to develop, the strategic importance of ARKIVs in advancing decentralized AI technologies and enhancing the protocol's computational capabilities becomes ever more evident.

The Smart Contracts Layer enables the various features and functionalities that perform on-chain transactions, enabling the AI Protocol to automate the execution of predetermined conditions that bridge the Intelligence Layer, Asset Layer, and the dApps that are used to interface with said functions - with the Settlement Layer.

These Smart Contracts are fundamental to executing Hive Registry Contracts, perform Governance Voting via Snapshot proposals, administering token transaction contracts, and enable functions like the Fusion of an Intelligence Pod with an NFT to create an iNFT.

V3 of the AI Protocol is the latest iteration of the Smart Contract Suite that powers the tech stack and features several upgrades that power the creation of ALI Agents, and bridges them to the crowdsourced clusters of GPUs operating off-chain that fulfills inference requests from ALI Agents by running AI models, called “Decentralized Inference Clusters.”

As per our Tokenomics, we will have the following ALI Token Reserves and Vesting:

Keeping in line with the above, and in the spirit of full transparency, the various ALI Token Reserves are held in the following ETH addresses:

AI Protocol Ecosystem Development Reserve

Allocation: 3,700,000,000 ALI Tokens

Initial Unlock: 185,000,000

ETH Address: 0x26aAf7491588d4fF1146523917Fb196B307603C8

The 325,000,000 ALI Tokens that were reserved for the Token Distribution Auction and were not utilized during the TDA are in the same wallet as the Ecosystem Development Reserve.

AI Protocol Private and Strategic Sale Reserve

Allocation: 2,300,000,000 ALI Tokens

Initial Unlock: 230,000,000

ETH Address: 0x562B3143b566920becAb5f477C1c55c0FCBEcDDd

AI Protocol Team and Advisor Reserve

Allocation: 2,000,000,000 ALI Tokens

Initial Unlock: 100,000,000

ETH Address: 0x5c17ed4B16672Fd134b9046957e3FE68A7e8A139

AI Protocol Marketing Reserve

Allocation: 1,000,000,000 ALI Tokens

Initial Unlock: 100,000,000

ETH Address: 0x6244b5c1E3056298055df674dA546e319711afA8

AI Protocol Treasury Reserve

Allocation: 500,000,000 ALI Tokens

Initial Unlock: 0

ETH Address: 0x46d608d34D1d4e94Eb15329747ceF7E5f5854C00

While the Ethereum Blockchain acts as the Settlement Layer for the AI Protocol’s on-chain activity, several Layer 2 networks and EVM-Compatible blockchains serve as expansive architecture solutions, allowing for less friction and lower cost gas fees to execute Smart Contracts that interface with various Protocol-Compatible Assets and dApps.

The AI Protocol is not only blockchain-agnostic in principle, fulfilling a commitment to decentralize the Protocol ecosystem cross-chain, but it also serves to grow the architecture of the Protocol to reach new users and markets, operating intentionally to scale and decentralize further, progressively.

The AI Protocol and its Smart Contract Suite are currently deployed on Ethereum, Base, Polygon, and Cronos networks.

A Token For The Ecosystem

The native ERC-20 Artificial Liquid Intelligence (ALI) Utility Token is fundamental to the decentralized operations, governance, and growth of the AI Protocol. The ALI Token is a blockchain-agnostic asset that can be used for creating assets, providing liquidity, staking, transacting, accessing AI Services, upgrading tokenized assets, governing the AI Protocol, rewarding various forms of user and creator participation, and much more.

On the Protocol level, the ALI Token serves to regulate, incentivize, and reward the various participants of the AI Protocol. As a decentralized protocol with a variety of participants engaging in complex tasks, the AI Protocol requires a native utility token to not only function efficiently but to grow using the inherent advantages of token network effects.

Let's explore a list of some of the functions and use cases for the Artificial Liquid Intelligence (ALI) Utility Token. This Token can be utilized:

To Enable Liquidity

The ALI Utility Token plays a massive role in supplying wells of liquidity for the purpose of fertilizing frictionless AI systems throughout the AI Protocol. These wellsprings provide a layer of liquid substrate to draw value from, lubricating the flywheels of value throughout. The mechanism of "locking up" ALI tokens within a variety of AI Protocol smart contracts emerges as a fundamental facilitator of liquidity. This lays the groundwork for a decentralized onchain economic model that drives the Protocol's advancement. iNFT Contracts and Intelligence Pod Contracts rely on locked up ALI to perform more complex and dynamic tasks, wherein ALI tokens are employed to upgrade these assets. This locking up of ALI facilitates transactions between these assets and their owners, but also facilitates the flow of compute and data resources to Hives - to be distributed to ALI Agents.

The establishment of ALI as a reserve token for ALI Agent bonding curve smart contracts enables their embedded liquidity to be facilitated. ALI can be used as an effective pairing in the efficient deployment and circulation of ERC20 Tokens within ALI Agent communities. By allowing for ALI to underwrite ALI Agent economies, the Protocol utility token not only ensures liquidity for tokenized AI assets but also greases the wheels of participation and innovation, fostering a dynamic evolution and advancement of onchain AI systems.

Additionally, the creation of Hive Liquidity Pools and ALI Staking Contracts significantly enhances this fluid intelligence network. Hive LPs play a critical role in providing necessary liquidity for Hive-native Utility Tokens, ensuring their availability and functionality within the ecosystem. ALI Staking Contracts, distributed across the AI Protocol ecosystem, establish a solid framework for token holders to stake their ALI, thereby rewarding them for their contributions to network security and stability, including Hives.

This intricate system of smart contracts, serving as a "token sink," effectively converts the locked-up ALI into a vast network of onchain wells to draw upon. This reserve system supports the vast array of tokenized AI Assets, providing the economic foundation required to power this cornucopia of generative and agentive onchain AI systems.

To Create And Engage AI Assets

With the upgrade of the AI Protocol to V3, the ALI Token takes on even more responsibility as an essential unit of tokenized intelligence, particularly to serve functional on-chain and off-chain processes. On dApps like Noah’s Ark and ALIagents.ai, the ALI Utility Token can be used to purchase off-chain, dApp-native credits on the platform as well. These credits can be used to create and interact with onchain AI assets and pay to access specialized AI services.

Anyone can access the AI Protocol's GitBook to engage smart contracts that allow for the creation of tokenized AI assets as well. For example, the creation of Hives requires both an ALI Agent and a Level 5 Intelligence Pod to create a Level 5 ALI Agent, both of which can be created using the ALI Utility Token.

This makes the ALI Token an essential exchange of value for the creation of onchain decentralized AI assets.

To Distribute Rewards

Being that ALI is used to access AI Services from AI Protocol-Compatible Assets, owners of AI Protocol-Compatible Assets can be rewarded with ALI when users access their functions to perform tasks, interact with their Assets, and create content with them. Therefore, ALI serves the purpose of incentivizing creation of AI Protocol-Compatible Assets, like iNFTs and ALI Agents, and for delivering unique creations that are valuable to their users.

For example, Hives owners can create staking campaigns for ALI Token holders that rewards them with Hive-native Utility tokens. Another use case is for ALI Agent owners - for every transaction of ALI Agent Keys, there is a creator fee that is distributed to the Agent's owner, as the embedded liquidity within every ALI Agent is programmed to assess each Key transaction.

To Transact With Tokenized AI Assets

The ALI Utility Token functions as the quintessential medium for transactions, serving as the bridge between humans and on-chain AI assets, as well as facilitating interactions among those assets themselves. This mechanism ensures a standardized and efficient means of availing AI services, where the token acts not just as a medium of exchange but also as a value assessment tool for the services rendered by these tokenized AI assets. The ALI Utility Token is instrumental in enabling transactions between on-chain AI assets themselves. This inter-asset communication is critical for the autonomous operation of AI services where assets may require to access capabilities or information from each other. Consequently, ALI tokens streamline the process of leveraging the Protocol's AI capabilities, making advanced AI transactions more accessible and frictionless to participants throughout the Protocol.

In essence, the ALI Utility Token is the lifeblood of the AI Protocol ecosystem, enabling a fluid and dynamic marketplace of AI services and interactions. By serving as the universal unit of transaction, ALI tokens not only simplify the economic engagements within the ecosystem but also propel the growth and advancement of decentralized AI, fostering an environment where innovation, accessibility, and collaboration thrive.

To Upgrade AI Assets And Access Services

AI Assets like Intelligence Pods are able to be upgraded by their owners, from intelligence Level 1 up to Level 5. Each Level is an upscaling of the Intelligence Pod's capacity to deliver off-chain intelligence data to its users. Whether the ALI Token is being fused with an NFT to create an iNFT, a Level 5 Pod being fused with an ALI Agent to create a Hive, or a Pod being connected to a Hive to provide compute power - the magnitude of the Pod's ability to deliver its AI Services is directly proportional to its intelligence Level.

The ALI Token is required to upgrade the Intelligence Level of any Pod, making ALI an essential utility for that upgrade.

Within dApps like ALI Agents and Noah’s Ark, the ALI Utility Token is used to access services from AI Assets, like ALI Agents and iNFTs. Whether to pay for credits to interact with an iNFT or to customize an ALI Agent with a cloned voice or a unique LLM - The ALI Token acts a unit of intelligence value for accessing the AI Services from AI Protocol-Compatible Assets and dApps on the AI Protocol.

To Govern the AI Protocol

The ALI Utility Token acts as a governance token when it comes to making decisions about the AI Protocol, using snapshot.org. With a trajectory of progressive decentralization, the AI Protocol requires more input from ALI Token holders over time, increasingly democratizing the determination of important functions to manage the development of the Protocol.

This gives the ALI Token an increasingly fundamental governance value, and can play a role in the shaping of the future of the Protocol, its tech stack, as well as the Assets and dApps that are built on it.

The AI Protocol's GitHub repository provides documentation for anyone to engage the smart contract suite directly, without using a dApp interface, in order to execute the following events:

Evolution of the AI Protocol

Previous iterations of the smart contracts that power the AI Protocol have been improved and upgraded over the years, enabling new and complex artificial intelligence services to be executed on chain. As various off chain AI technology innovations are being made, they have required tokenized assets like iNFTs, Intelligence Pods, and ARKIVs to adapt and be evolved to grow their capacities to deliver powerful AI services through on chain activities.

With this evolution, the ability for persistent, algorithmic software execution in the form of smart contracts have been levelled up to meet those challenges. With each upgrade to the AI Protocol, new smart contracts are developed and deployed to build the architecture that permits these new AI services and tokenized asset capacities to function.

In this section, each major upgrade to the Protocol is reviewed, allowing for transparent access to the record of the important enhancements to this suite of cutting edge AI technology on the blockchain.

The Artificial Liquid Intelligence (ALI) Token is the native ERC-20 Utility Token of the AI Protocol.

In this section, we aim to explain the Tokenomics of the ALI token and share a detailed breakdown of the total maximum supply. Additionally, we detail the various mechanisms by which the token is distributed.

Smart Contract Details

ALI is an ERC-20 Token with the following smart contract address on the Ethereum Network:

0x6B0b3a982b4634aC68dD83a4DBF02311cE324181

Token Distribution Details

The ALI Token is an initial fixed supply token (long-term deflationary), with 10 Billion total supply, and the following token distribution:

ALI Token Distribution Auction

From the 28th to the 31st of December, a Token Distribution Auction was conducted for its ALI Token via the Copper Launch Protocol.

The participation in the TDA exceeded our expectations and it speaks volumes about our decision to conduct a TDA that was designed to be fair and placed the best interests of the community above everything else. It is a testament to the vision of the AI Protocol that:

• 173.33 M amount of ALI Tokens were purchased exceeding our expectations of 1.5% of the total supply sold.

• The ALI Token at the end of the TDA has a value of $0.0678 USD

• The community participating in the ALI economy had now grown to almost 23k active members.

As per the Token Distribution, a total of 5% of the total supply was reserved for the TDA. In total, during the TDA roughly 1.75% of the tokens were sold. The remaining 3.25% of the total supply is in the TDA Reserve for liquidity and staking incentives over the next several months.

Token Vesting Details

The ALI Token distribution will be released as follows:

A stacked area chart of the Token Vesting is shown below, the tokens started vesting on Feb 14th, 2022 with an initial circulating amount of 7.9% (790 M) of the total supply:

ALI Token Sale Details

The ALI Token Sale details are shared below:

ALI Token Sales and TDA Details

Technical Details

The ALI Token has the following technical details:

Symbol: ALI

Name: ALI Token

Decimals: 18

Initial Total Supply: 10,000,000,000 ALI

Non-mintable: New tokens cannot be created

Burnable: Existing tokens may get destroyed

DAO Support (Governance): Supports voting delegation

ALI On Base

Symbol: ALI

• Name: ALI Token

• Decimals: 18

• Non-mintable: New tokens cannot be created

• Burnable: Existing tokens may get destroyed

• DAO Support (Governance): Supports voting delegation

• Contract: 0x97c806e7665d3AFd84A8Fe1837921403D59F3Dcc

ALI On Cronos

Symbol: ALI

• Name: ALI Token

• Decimals: 18

• Non-mintable: New tokens cannot be created

• Burnable: Existing tokens may get destroyed

• DAO Support (Governance): Supports voting delegation

• Contract: 0x45C135C1CDCE8d25A3B729A28659561385C52671

ALI On Polygon

Symbol: ALI

• Name: ALI Token

• Decimals: 18

• Non-mintable: New tokens cannot be created

• Burnable: Existing tokens may get destroyed

• DAO Support (Governance): Supports voting delegation

• Contract: 0xbFc70507384047Aa74c29Cdc8c5Cb88D0f7213AC

Self-executing smart contracts with the terms of the agreement directly written into code, serve as the backbone of the AI Protocol. By deploying these contracts on various blockchains and layer-2 networks, transactions are performed exactly as programmed, automating critical processes, from managing decentralized resources to facilitating tokens and tokenized assets transactions.

Below are a series of AI Protocol smart contracts, their identifying contract assets, and links, tabulating the Protocol's smart contract suite transparently.

Solana Smart Contracts

Ethereum Mainnet Smart Contracts

Polygon Mainnet Smart Contracts

Cronos Mainnet Smart Contracts

Base Smart Contracts

Protocol V2

In January 2023, the AI Protocol upgraded to Version 2. The goal of V2 was to expand both the power and scalability of the AI Protocol ecosystem. It also provided the opportunity to move forward with the progressive decentralization of the AI Protocol’s governance structure.

Version 2 featured a number of significant upgrades to the AI Protocol and its ecosystem, including:

• The addition of an Intelligence Layer. AI Protocol V2 added a new Intelligence Layer to its tech stack. This layer was designed to provide a suite of AI models and systems for the AI Protocol, including the flagship AI model – CharacterGPT. By utilizing the Intelligence Layer, iNFTs could begin to provide AI Services across all current and future dApps on the Application Layer of the AI Protocol. This update unlocked not only cross-dApp interoperability for iNFTs, but also the capability to power the dApps themselves, by utilizing the intelligence imbued into the iNFTs.

• Expansion of the AI Protocol to the Polygon network. Version 2 of the AI Protocol expanded Smart Contract execution beyond the Ethereum blockchain, enabling developers and participants of the Polygon blockchain to interact with, and leverage, the AI Protocol. This expansion enabled a much more affordable and frictionless way for users and developers of smart contracts to participate in the AI Protocol ecosystem.

• The evolution of Intelligence Pods and iNFTs. After more than a year of learning and training from crowdsourced interactions on Version 1, the artificial intelligence engines of the AI Protocol have evolved. In Version 2, Intelligence Pods unlocked the ability to create decentralized applications (dApps) on the Application Layer of the AI Protocol. With this upgrade, the iNFTs could begin to provide those same services to other Protocol-Compatible Assets.

• The implementation of Snapshot governance. The ultimate goal of the AI Protocol is progressive decentralization – a process where control and governance of the ecosystem will be placed in the hands of its users. In Version 2, the AI Protocol launched the first phase of this process. Using the Snapshot governance tool, the AI Protocol held its first vote on its Constitution. The voting process was initiated on Dec. 23, 2022 and was successfully adopted on December 30th, 2022.

The Polygon network smart contract that was added to the AI Protocol smart contract suite with the upgrade to V2 can be found here:

AI Protocol V 0.1

In early 2021, the AI Protocol deployed the first iteration of the AI Protocol (V 0.1) on the Ethereum network. This first version of the protocol offered a powerful proof of concept by enabling the creation of the world’s first Intelligent NFT (iNFT): Alice.

The initial concept of an iNFT was originated and invented by Arif Khan, the CEO of Alethea AI, and was first presented through Andrew Steinwold’s Zima Red Newsletter published on April 6, 2021. The iNFT standard represented a foundational shift in combining two exponential technologies (artificial intelligence and Blockchain) that are set to transform the world.

Powered by artificial intelligence, Alice was immediately recognized as the most technologically advanced NFT created at that time. She represented the convergence of art and technology – a digital NFT character with a personality, and the ability to respond independently using generative AI.

Alice was sold by the famed Sotheby’s auction house as the world’s first iNFT for $478,800. The publicity surrounding her sale gave the world a glimpse of the future of generative AI, in the form of iNFTs embedded with AI animation, voice synthesis and generative AI capabilities.

With the success of the Alice iNFT, Alethea AI had demonstrated a solid proof of concept for iNFTs and the AI Protocol - even in its early stages. V 0.1 of the AI Protocol offered a strong foundation to build upon. Having successfully demonstrated the utility and need for this technology, the Alethea AI team set their goals on ensuring that the AI Protocol’s future iterations were more durable and versatile in its functionalities.

The smart contracts for AI Protocol V 0.1 can be found here:

AI Protocol V 1.0

While the first AI Protocol (V0.1) provided a proof of concept for iNFTs, it was Version 1 that expanded these capabilities to create a fully functioning ecosystem.

The AI Protocol then developed the next iteration of its AI Protocol, which was originally named the iNFT Protocol.

Version 1 focused on improving the logic of the initial smart contracts and frameworks used in V0.1. On Oct. 12, 2021, After thorough testing and audits by a number of experts in the fields of blockchain and generative AI technology, V1 of the AI Protocol was deployed.

In addition to the Revenant iNFT collection, 10,000 Intelligence Pods were produced. These Protocol-Compatible Assets serve as a medium to transform standard NFTs into iNFTs using the AI Protocol – enabling any NFT to acquire personality traits and generative AI functionality.

This version of the AI Protocol also introduced the first decentralized app (dApp) to the AI Protocol: Noah’s Ark. This dApp was launched as the world’s first intelligent metaverse where iNFTs could exist, interact, and provide generative AI services to visitors. Using Noah’s Ark, it was now possible for anyone to use the AI Protocol in creating and training iNFTs.

The smart contracts that were added to the AI Protocol smart contract suite with the upgrade to V1 can be found here:

Overview and Basics

What is the AI Protocol Version 3 Upgrade?

The AI Protocol V3 enables the development of a community-driven, secure, and adaptive, decentralized physical infrastructure (DePIN) for tokenized AI Systems.

The AI Protocol V3 marks a significant advancement over its predecessors by introducing a range of innovative features including ALI Agents, Hives, distributed GPU and Storage Clusters, tokenized AI Models and Datasets, and tokens that incorporate non-custodial embedded liquidity. It empowers users with community-powered IPs and enables trustless creative collaboration. These enhancements, along with several other improvements, collectively establish the AI Protocol V3 as the most advanced decentralized AI tech stack in the world.

How does the V3 upgrade change legacy assets in the AI Protocol Ecosystem?

• Intelligence Pods

With previous Version of the AI Protocol, Pods provided personality parameters at first, and then they evolved to provided intelligence to dApps. Now, they have taken the next evolutionary step to provide compute resources to Hives.

In the AI Protocol's latest advancement, Intelligence Pods have evolved as on-chain representations of off-chain compute, crystallizing a novel approach to decentralized computational resources. Previous iterations of AI-powered assets (like iNFTs) within the AI Protocol have relied on centralized access to computational resources, which restricted their scalability and interoperability. With the launch of the AI Protocol V3, Intelligence Pods have taken the next evolutionary step to provide compute resources to Hives, helping assets within the AI Protocol’s ecosystem achieve decentralized access to AI Models and other resources.

Intelligence Pods can now be upgraded to have a Level 5 Intelligence Level, which enables it to be fused with any ALI Agent to become a Level 5 ALI Agent. Any Level 5 ALI Agent can interact with the AI Protocol’s Hive Registry Contract to create a Hive.

Any Intelligence Pods that are connected to Hives are rewarded for their AI Services in relation to the Level of the Pod, including Level 5 ALI Agents. All Pods are rewarded by the Hive in its unique Hive-native utility token.

• iNFTs

Previously, any Protocol-supported NFT can be turned into an iNFT via the AI Protocol on Noah’s Ark. This is achieved by fusing the NFT with another ERC-721 asset called the Intelligence Pod. Once the NFT is fused with an Intelligence Pod, it acquires its own unique AI-powered personality.

While iNFTs maintain their capacity to deliver personalized AI services and experiences to their owners, the Intelligence Pods connected to them have now evolved to be able to provide compute resources to Hives. This means any iNFT (including Revenants) can be connected to a Hive, and its fused Pod will provide the resources described above, while continuing to retain the utility it always previously held. In the same manner Pods alone are rewarded relative to their Level, the iNFT would be rewarded relative to the level of their fused Pod.

• ARKIVs

With the upgrade to V3 of the AI Protocol, ARKIVs can be connected to Hives in the same manner as Intelligence Pods, however, ARKIVs will provide data storage capacity for those Hives, and be rewarded for it. ARKIVs that are connected to a Hive are rewarded for their AI Services in that Hive’s unique Hive-native utility token.

• ALI Utility Token

In the past, the ALI Utility Token was an important transfer of value and utility across the AI Protocol’s V1 and V2 ecosystem, and remains an integral part of those very same functions. With the upgrade of the AI Protocol to V3, the ALI Token takes on even more responsibility as an essential unit of tokenized intelligence, particularly to serve functional on-chain and off-chain processes.

With the upgrade of the AI Protocol to V3, ALI is still used to upgrade the Intelligence Levels of Intelligence Pods and iNFTs and as a governance token for voting on Snapshot proposals. ALI can also be used to pair with Hive-native tokens for Hive owners to create Liquidity Pools.

What kinds of new AI systems and assets have been introduced into the AI Protocol Ecosystem?

• ALI Agents

ALI Agents are advanced generative and agentic AI assets on ALIagents.ai, offering a decentralized alternative to traditional AI models. They allow for high customization and are managed by the community, ensuring their evolution aligns with collective input and ethical standards. ALI Agents are a decentralized alternative to Generative Pre-trained Transformers (GPTs). ALI Agents represent a fundamental shift from centralized AI systems, empowering individual and community-driven ownership, shared rewards, and crowdsourcing of IP creation and content.

ALI Agents have an ERC-721 Token (NFT), which enables ownership, property rights, access gating, etc. - and an Identity that is represented on the NFT’s metadata.

ALI Agents can have embedded liquidity in the form of:

1. A bonding curve smart contract integrated,

and, if the ALI Agent owner wishes,

1. A native ERC-20 token and a liquidity pool

On-chain representation of an ALI Agent = NFT + Embedded Liquidity + Hive Smart Contract

ALI Agents are created by, and draw their AI resources and services from "Hives," using crowdsourced storage and GPU compute resources that Hives curate and distribute to the ALI Agents created by them.

• ALI Agent Embedded Liquidity (Keys and Tokens)

Two notable features of ALI Agents are their capability to issue unique digital assets, one being ALI Agent "Keys," which come with non-custodial embedded liquidity, and the other being ALI Agent Tokens, which can incentivize and reward a ALI Agent's fandom and community.

• Level 5 ALI Agents

When an ALI Agent and a Level 5 Intelligence Pod are fused together, a Level 5 ALI Agent is created. A Level 5 ALI Agent can be immutably recorded into the Hive Registry smart contract, producing a Hive, with its own Hive-Native utility token and a Liquidity Pool launched with it.

The Hive Registry Contract enforces that a new Hive can only be created by utilizing a Level 5 Intelligence Pod. Any ALI Agent fused with a Level 5 Pod can utilize the Hive Registry Contract to create one Hive.

• Hives

With the upgrade to V3, the AI Protocol allows for the creation of Hives.

When a ALI Agent and a Level 5 Intelligence Pod are fused together, a Level 5 ALI Agent is created. A Level 5 ALI Agent can be immutably recorded into the Hive Registry smart contract, producing a Hive, with its own Hive-Native utility token and a Liquidity Pool launched with it.

A Hive is an AI system that allows ALI Agents to have decentralized access to AI models and data, storage, compute power, and other resources - by enabling trustless coordination between various on-chain and off-chain components of the AI Protocol. In order for a Hive to perform its functions, it requires a variety of smart contracts and tokenized assets to self-execute a system of complex programs and on-chain events.

Hives are capable of curating the provision of compute and storage power, represented by Intelligence Pods and ARKIVs respectively, processing complex AI systems, models, and data I/O, and in turn providing these AI Services to ALI Agents to consume. These same Hives are also capable of processing the complex transactions of AI Protocol-compatible assets, ALI, ETH, and Hive-Native Tokens, distributing them as rewards to the various participants in the Hive ecosystem in relation to the resources they provide and consume.

• Hive Embedded Liquidity (Hive-native Utility Tokens)

AI Protocol-Compatible Assets

How can I create an ALI Agent?

Are ALI Agents NFTs?

An ALI Agent is a tokenized AI System that has specialized functionality and embedded liquidity. When an ALI Agent is created, it becomes tokenized as an NFT on the Ethereum Mainnet, and launches its own embedded liquidity as a bonding curve.

Do I have to have a crypto wallet to create an ALI Agent?

How can I convert an iNFT into an ALI Agent?

What kinds of utility does an ALI Agent have?

The ALI Agent may utilize one or more AI Models along with additional components (storage, datasets, etc) of the AI Protocol to form a specialized functionality. For instance, an ALI Agent could be configured to serve as an image generator, an article writer, an entertaining character, act as a personal companion, function as a travel agent, provide tutoring in mathematics, enable video creation, and much more.

How can I convert an NFT into an ALI Agent?

Can I convert my Revenant into an ALI Agent?

Can I buy or sell an ALI Agent?

Yes, ownership of an ALI Agent is not limited to its creator, so anyone can buy or sell an ALI Agent on any blockchain asset arketplace that supports the transactions of ALI Agents, without limitation.

Can I transfer an ALI Agent from one wallet to another?

Yes, ownership of an ALI Agent is not limited the owner’s wallet, and can be transferred as an NFT asset between wallets without limitation.

What is an ALI Agent Key?

Upon the creation of an ALI Agent, a bonding curve is deployed through a smart contract, granting the creator at at least one initial ALI Agent Key. This Key represents a tokenized stake in the ALI Agent's bonding curve. Anyone can buy or sell Keys of an ALI Agent by purchasing with the ALI Utility Token.

What is a bonding curve?

A bonding curve is a mathematical formula that dynamically determines the price of ALI Agent Keys based on their current supply and demand within the market. This mechanism ensures a fair and transparent pricing model that adjusts in real-time, as keys are bought and sold.

What is an ALI Agent Token?

An ALI Agent Token is an ERC-20 Token, issued by an ALI Agent's Creator and/or Key Holders, to expand the creative economy of the Agent's community. The issuer of the Token can choose to use ALI Agent Tokens as Airdrops and/or create an ALI Agent Token Liquidity Pool, allowing anyone to participate in this economy through an ALI Agent Token exchange.

How can I fuse a Level 5 Intelligence Pod with an ALI Agent?

How can I upgrade an Intelligence Pod to Level 5?

Can I fuse an iNFT, that already contains a Level 5 Intelligence Pod, with an ALI Agent to create a Level 5 ALI Agent?

Can I continue to use my iNFT in the way I’ve always used my iNFT, even if it’s now a Level 5 ALI Agent?

Yes, while the AI Protocol’s V3 upgrade evolved iNFTs and their Intelligence Pods to deliver added capacity to provide compute power to Hives, iNFTs maintain their ability to deliver personalized AI services and experiences to their owners.

Can I unfuse a Level 5 ALI Agent, converting it back to a Level 5 Intelligence Pod/iNFT and ALI Agent separately?

No, once a Level 5 ALI Agent is created, it cannot be broken down into its previous parts.

Hives

Can I connect my ALI Agent to more than one Hive?

No, an ALI Agent is created by one Hive and is permanently connected to that Hive.

How can I create or join a Hive?

The AI Protocol allows the creation and tracking of Hives via the Hives Registry Contract. This contract, among other things, keeps on-chain records of which Hives exist, provides on-chain details of those Hives, tracks the various assets connected with them, and enables tokens to register as ALI Agents.

It is important to note that as per this release of the AI Protocol V3, new Hives can only be created on the Ethereum Mainnet. While the other chains might have deployments of the Hive Registry Contract, they would not be able to use the contract to create a new Hive.

How can I update or manage a Hive?

After a Hive is created, most of its on-chain components (like the Utility Token, Payments and Rewards Contracts, etc.) are deployed automatically.

The Hive’s creator is expected to follow the documentation and guidelines of the AI Protocol in order to deploy and start the various off-chain components of the Hive. These actions may include: running the software that enables the inference cluster of GPUs and starts the Storage Units cluster, configuring the rewards smart contract, setting up the event trackers for on-chain activities, etc.

What is the Hive Registry?

Hive Registry Contract is a smart contract that enables the creation of new Hives, maintains an on-chain record of all the Hives and their details, enables ERC-721 tokens to register as ALI Agents, enables Assets to be connected to a Hive and keeps an on-chain record of those connects.

What is the Propolis AI Hive, and why is it important?

Propolis AI is the first Hive ever created and is de facto the genesis of all original ALI Agent creations. Since all new Hives must be created by fusing a ALI Agent with a Level 5 Intelligence Pod, all new Hive creation in the future can be traced back to ALI Agents created by the Propolis AI Hive.

What kinds of utility does a Hive-Native Utility Token have?

How can I launch a Utility Token with my Hive?

How can I connect my Intelligence Pod with a Hive to provide compute power?

By accessing a Hive’s native site, there will be instructions on how to connect an Intelligence Pod to provide compute power.

How can I connect my ARKIV with a Hive to provide storage capacity?

By accessing a Hive’s native site, there will be instructions on how to connect an ARKIV to provide compute power.

How can I be rewarded by connecting my Intelligence Pod to a Hive?

Depending on the Level of the Intelligence Pod or iNFT that’s connected to a Hive, rewards are distributed by the Hive to the connected Pod, relative to that Intelligence Level. Rewards are distributed in the form of the Hive’s unique utility token.

How can I be rewarded by connecting my ARKIV to a Hive?

Rewards are distributed by the Hive to the connected ARKIV, in the form of the Hive’s unique utility token.

How many Intelligence Pods and/or ARKIVs can I connect to one Hive?

As many as you own and decide to connect. There is no limit.

Can I connect my Intelligence Pod and/or ARKIV to more than one Hive?

No. Intelligence Pods and ARKIVs can only be connected to one Hive at a time.

Can a DAO create/manage a Hive?

That is not a decision the AI Protocol can make for a Hive owner. Ownership organization is the prerogative of a Hive’s owner.

What smart contracts are new in the AI Protocol Version 3?

Hive Registry Contract

A Hive’s Payment Contracts

A Hive’s Reward Distributer

A Hive’s Asset Minter Contracts