Bull run faith crisis! Virtuals launches Unicorn IPO mechanism, aiming to revive Builder spirit and long-termism in the AI track.

After experiencing the largest liquidation event in history of 200 billion dollars on October 11, the market deeply reflects on the trends of “crypto punk spirit loss” and the casino-like atmosphere of “pans everywhere”. Against this backdrop, Virtuals announced the launch of a brand new Unicorn IPO rule to replace the previous Genesis mechanism. The new rule aims to address the issue of Bots jumping the queue by introducing tax rate decay, a dynamic pricing curve based on FDV, and a Lock-up Position unlocking mechanism, fundamentally screening and incentivizing outstanding AI projects with a long-term belief, leaving a foothold for the Builder spirit in the encryption field.

Structural Crisis of the Encryption Market: The Absence of Faith and Casino-like Atmosphere

The recent crash in the encryption market not only set a historic liquidation record but also revealed structural changes within the industry. Many industry leaders (KOLs) believe that, with the proliferation of meme sentiment and a surge in short-term speculation, the core “crypto punk spirit” of cryptocurrencies is being abandoned, and the market is gradually turning into a massive casino filled with “pans.” This absence of faith is a significant reason for the brutal market crash and Builder fatigue. At this time, Virtuals launched the Unicorn rules as a positive response to this crisis, attempting to refocus on products and long-term value through strict mechanism design.

Unicorn Rules Highlights: Reshaping Fair Launch and Long-term Incentives

The Unicorn new allocation mechanism aims to completely reverse the drawbacks brought by the points system during the Genesis era and the uneven quality of projects from both investor and project perspectives, ensuring fairness and a long-term value orientation.

Mechanism Optimization for Investors

The points system has been canceled, everyone can buy.

The new rules completely abolish the points system from the Genesis period, lower the participation threshold for retail investors, and address the inflation and fatigue issues caused by users farming to accumulate points.

Dynamic Price Curve Based on FDV

Introduce a dynamic pricing model based on Fully Diluted Valuation (FDV). The higher the project's popularity, the higher the FDV, and the higher the initial offering price. This encourages investors to conduct in-depth research on the project and to position themselves in advance when the FDV is low.

The Decaying Tax mechanism curbs Bots from front-running.

To ensure a fair launch, a buyer's tax will be levied during the first 100 minutes of the project's launch, with the tax rate linearly decreasing from 99% to 1%. This high tax rate mechanism makes it unprofitable for Bots to engage in front-running behavior.

Community Airdrop and Leverage Trading

Each project will allocate 5% of the community airdrop, of which 2% is rewarded to VIRTUAL stakers and 3% is distributed to active users in the ecosystem. In addition, the platform supports 3x leverage for long/short positions, providing investors with more trading tools while amplifying rewards and penalties for quality and “Rug” projects.

Strict constraints and long-term incentives for the project party

Team tokens are based on FDV Lock-up Position and unlocking.

In the 50% token allocation for the founding team, 25% will be locked for the long term or unlocked when the FDV reaches $160 million, and will undergo a 6-month linear release. An additional 25% will be used for linear fundraising, gradually sold through on-chain limit orders as the FDV grows from $2 million to $160 million, ensuring that the team's cash flow is linked to the project's growth.

Team Public Token Purchase: Confidence Display

The project party can purchase 45% of the tokens in the public subscription pool without limits, but these tokens are subject to a default rule of 1 month lock-up position and 12 months linear release. This move encourages capable teams to publicly demonstrate their long-term confidence in the project.

Strategic Transformation of Virtuals: From Launchpad to Builder Ecosystem

The positioning of Virtuals is transitioning from a simple token issuance machine (Launchpad) to a stringent Builder ecosystem. This rigor has shifted from the user side to the project side:

ALE Indicator Screening

Virtuals previously launched the Agent Liquidity Engine (ALE) to measure whether the AI Agent solves real problems, whether it has sustainable income, and whether the team can continuously reinvest the income back into the ecosystem.

ACP Downgrade Mechanism

The official regulations state that AI Agents participating in the Agent Collaboration Program (ACP) will be downgraded by the system if they fail consecutively 10 times, in order to ensure high standards of platform service.

Unicorn mechanism deters Rug projects

The new mechanism sets multiple barriers for “Rug” projects through FDV unlocking and a highly transparent team purchase mechanism, ensuring that only high-quality AI projects with a long-term commitment can stand out.

The core of this strategic transformation lies in the fact that Virtuals is no longer content to be an amplifier of Meme sentiments, but rather aims to leverage its Launchpad advantages to gather and incubate the highest quality AI Agents for its multi-Agent Collaboration Network (ACP). Although the ACP business is not yet fully mature, the direction represented by its multi-Agent system collaboration is currently recognized as having future potential, and once a breakthrough is achieved, it will have a tremendous impact on the industry.

Opportunities and Challenges for Retail Investors: The Art of Timing Purchases

For ordinary investors, the upgrade of Unicorn brings multiple benefits, such as improved quality of platform projects and the cancellation of point competition, as well as providing leverage tools to amplify profits. However, the dynamic price curve based on FDV and the tax rate decay mechanism also significantly increase the difficulty of timing the entry. Investors need to find an optimal buying balance between “high early purchase tax rate” and “late purchase FDV surging.” Although the wealth effect of projects launched on Unicorn during the current macroeconomic downturn has not yet fully replicated that of the Genesis period, its potential for new listings remains enormous in the long run.

Conclusion

Virtuals has launched the Unicorn IPO mechanism, which is not only a correction to the market chaos but also a firm belief in the spirit of “crypto punk” and Builder in the AI track. Through innovation in mechanisms, the platform is committed to screening high-quality AI projects from the source, hoping to replicate the explosive moments of AIXBT level and ultimately promote ACP to usher in an industry transformation moment comparable to ChatGPT.

Disclaimer: This article is for news information only and does not constitute any investment advice. The encryption market is highly volatile, and investors should make cautious decisions.