Exclusive Outpost Research Report 👇

As promised in Wednesday’s Big Brain Breakdown, we are stoked to reveal our first-ever long-form research report, which dives into AI-focused fair launch platforms and why they could be the Meta this cycle.

Access the Research Report HERE.

Hit us up on X if you have any thoughts. We would love to hear from you!

Now, back to it 👊🏻

Market Metrics

Total Crypto Market Cap: up 1.4% to $2.7T
Total AI Sector Market Cap: down 1.2 % to $39.7B

Top Movers (7 days):

📈 Chappyz (CHAPZ): up 71.8% to $0.003753
📈 Spectral (SPEC): up 31.5% to $12.69
📈 Optimus AI (OPTI): up 25.4% to $0.3095

Mindshare Check:

The AI sector currently accounts for 22.18% of the total crypto market’s narrative mindshare. This is down 8.89% during the past 7 days, but it has overtaken the ETF mindshare, which surpassed the AI narrative last week due to the ETH ETF news.

Daily News

🟠 Jim Fan, head of Nvidia's AI Agents initiative, stated at the Gen AI Summit in San Francisco that the future of AI technology lies in developing software agents that orchestrate interactions between foundational models and other systems, ushering in the "agentic" era as the next step in AI evolution.

🟠 Allora Network and Mind Network have announced a collaboration that leverages Mind Network's Fully Homomorphic Encryption (FHE) protocol to enhance the security and privacy of AI development within their ecosystems.

🟠 Lab7007 has integrated the OpenLM model into their platform, allowing users to generate AI inference assets while directing fees back to $OLM holders.

🟠 SingularityNET and OriginTrail have announced a strategic partnership to support the development of the decentralized Knowledge Layer for AI.

🟠 Taoshi announced the launch of the Request Network will be on June 2nd. Request Network is a digital marketplace that enables full integration with Bittensor subnets, allowing users to access and purchase invaluable data and services from the ecosystem to drive innovation and research across various domains.

🟠 Fetch.ai, Ocean Protocol, and SingularityNET have finalized their merger to form the Artificial Superintelligence Alliance (ASI), which will be completed on June 13, 2024, introducing the $ASI token and establishing a decentralized AI ecosystem.

Highlights of the Week

🏗️ The Graph Expands To AI Infrastructure

The Graph, a decentralized protocol for indexing and querying blockchain data, is expanding its offerings to support the growing demand for AI-powered decentralized applications (dApps). The team at Semiotic Labs, a core developer of The Graph, has introduced two AI services in their recently published white paper, "The Graph as AI Infrastructure": Inference and Agent.

The Inference service allows developers to serve and run AI models on The Graph's decentralized network, harnessing the computational power of Indexers. This enables the integration of AI features, such as ChatGPT-like functionalities, directly into dApp frontends. The Agent service takes AI integration even further by facilitating the creation of autonomous, AI-driven dApps capable of complex interactions within a blockchain ecosystem.

These new AI-focused services signify a growing trend among existing data-centric networks, which are now pivoting to accommodate consumer AI models by leveraging their vast data resources. The development of such infrastructure is aimed at facilitating the creation and deployment of more consumer-oriented AI applications. As a result, we can anticipate an increasing number of consumer applications integrating with data layers like The Graph, as they provide the necessary foundation for building AI-powered dApps that can interact with blockchain data in a user-friendly and intuitive manner.

🥷 Virtuals Protocol Introduces Tokenized AI Agents

The most recent Virtuals Protocol proposal has passed, introducing tokenized AI Agents (IAOs) leveraging ORA Protocols IMO platform. These IAOs enable a new co-ownership model for AI agents and will adjust the Virtuals Protocol's emission model. The proposal introduces $agent tokens (with $agent as a placeholder for specific agent tokens), which represent specific AI agents within the Virtual Protocol ecosystem. These tokens are minted and awarded to contributors based on the quality and impact of their work on AI agents, as measured by an Elo rating system called Proof of Intelligence.

Additionally, the $VIRTUAL token will see two key changes:

First, they are used in Initial Agent Offerings (IAOs), where 50,000 $VIRTUAL tokens are locked to create a liquidity pool for each new $agent token. Second, the emission of $VIRTUAL tokens is allocated to the top 3 $agent liquidity pools, incentivizing investment in the most successful AI agents.

How you can take action:

1. Contributors can earn $agent tokens by developing and improving AI agents through the Proof of Intelligence (PoI) system.

2. Anyone can create new AI agents via IAOs by locking up $VIRTUAL tokens, receiving a portion of the initial $agent token supply.

3. Liquidity providers can earn a share of the protocol's token emission by supplying liquidity to the top $agent token pools.

4. Individuals can validate or delegate validation of AI agent upgrades to earn fees.

5. Developers can utilize AI agents in applications to receive a portion of the trading fees generated from $agent liquidity pools.

As more AI agents are tokenized through IAOs, the potential for value accrual within their respective ecosystems and the Virtual Protocol increases significantly, as additional incentives are being placed to foster the growth and adoption of $agent tokens. By aligning the interests of contributors, validators, and token holders, this approach creates a powerful incentive mechanism that encourages collaboration and drives the growth of the ecosystem. The enhanced accessibility and customization options provided by this model enable a wider range of applications and services to be built upon the Virtual Protocol.