Kinds.ai Whitepaper
  • Introduction
    • The Story
    • Getting Started
  • The AI Agents
    • Customized Agents (Conversational Agents)
    • Functional Agents
  • Decentralized Agent Layer for Everyone
    • AI Agent Platform
      • Initial Agent Offering (IAO)
      • Create and Customize AI Agents
        • Bonding Curve & Graduated Token
        • AI Agent Deployment
      • Tokenize AI Agent
        • IAO Mechanism
        • Rug-free Mechanism
    • $KINDS Token Introduction
      • $KINDS Token-economics
      • $KINDS Distribution
  • Kinds Protocol
    • Multi-Agent Collaboration
      • Co-ownership of KINDS Agents
      • Decentralized Deployment of KINDS Agents
      • Business Model
    • Collaborative Input and Traceability
    • Leaderboard
  • Important Information
    • Roadmap
    • Official Links
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  1. Decentralized Agent Layer for Everyone
  2. AI Agent Platform
  3. Tokenize AI Agent

IAO Mechanism

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Last updated 6 months ago

The is the process by which new AI Agents are introduced to the Kinds.ai ecosystem. It allows creators to launch their own AI Agents by locking a specific amount of $KINDS tokens, which are used to establish liquidity pools and enable trading for the agent’s tokens. This mechanism ensures a transparent and fair launch while fostering long-term stability and community engagement.

How the IAO Works

  1. Agent Creation

    • Creators initiate the process by designing a new AI Agent on the Kinds.ai platform.

    • The agent's tokenomics and functionalities are defined during this stage.

  2. Locking $KINDS Tokens

    • The creator locks a predetermined amount of $KINDS tokens, which fund the bonding curve mechanism for the agent’s token.

    • These tokens are paired with $KINDS to establish the token’s initial liquidity.

  3. Token Minting

    • Once tokens are locked, a new fungible token representing the agent is minted.

    • For example, if the agent is called "SPHYNX," the token would be $SPHYNX.

  4. Liquidity Pool Creation

    • When the bonding curve reaches a predefined market cap (e.g., $420k), a liquidity pool for the agent token paired with $KINDS is created.

    • This ensures fair pricing and seamless trading for all participants.

  5. Liquidity Ownership

    • The liquidity pool ownership is assigned to the creator, with a 10-year lock to ensure long-term stability and commitment.

  6. Delegated Validation Power

    • The validation power for future updates to the agent is initially delegated to an automated system for efficiency but can be reassigned by the liquidity owner.

Fair Launch Principles

  • No Pre-Mine or Insider Allocation: All agent tokens are distributed through the bonding curve, ensuring equal opportunities for every participant.

  • Fixed Supply: Each agent token is capped at a total supply of 1 billion tokens, promoting scarcity and value stability.

  • Liquidity Lock: Liquidity pools are locked for ten years, fostering market trust and stability over the long term.

  • Trading Fee Mechanism: A 1% trading fee (subject to adjustments) is applied to all agent token transactions. This fee funds the agent’s operational costs, such as inferences and GPU usage, supporting its revenue generation during the early stages.

Why the IAO Mechanism Matters

The IAO mechanism creates a transparent, sustainable, and equitable framework for launching AI Agents:

  • It aligns creator and community interests by providing a fair and accessible token launch process.

  • It establishes long-term liquidity and stability, ensuring that agents can grow within the ecosystem.

  • It promotes innovation by allowing creators to deploy and monetize AI Agents with minimal friction.

Initial Agent Offering (IAO)