What’s New with Virtuals Protocol? A Deep Dive into Miko’s Tweet

On April 10, 2025, Mardo (Miko), a prominent voice in the crypto and AI space under the handle @mikocryptonft, shared a detailed tweet about recent updates from Virtuals Protocol, a leading AI agent launchpad built on Ethereum’s layer-2 Base network. The tweet, accompanied by a vibrant graphic, highlights key improvements like a points system, tax allocation changes, and innovations such as the Agent Commerce Protocol (ACP) and GAME. Let’s break down the updates, Miko’s thoughts, and what they mean for builders and the broader AI ecosystem.

Virtuals Protocol: A Quick Overview

For those new to the space, Virtuals Protocol is a decentralized platform designed to help users create and launch AI agents—think of these as autonomous bots that can interact with social media, execute trades, or even livestream 24/7. Operating on the Ethereum layer-2 Base, it’s known for being a cost-effective launchpad for AI projects, as noted by CryptoPotato. The platform uses its governance token, VIRTUAL, and has partnered with projects like Music and Pond Hub to distribute airdrops, making it a hub for AI innovation in the metaverse and gaming sectors.

Key Updates Highlighted in the Tweet

The graphic in Miko’s tweet summarizes Virtuals’ recent announcements: taxes, SubDAOs, points, and GAME/ACP. Here’s what each means:

• Taxes: Virtuals increased the tax allocation to creators from 30% to 70% of the 1% tax fees. This means builders now get a bigger share of the revenue generated from their projects, which is a win for incentivizing development.

• SubDAOs: SubDAOs (sub-decentralized autonomous organizations) are smaller entities within the Virtuals ecosystem that manage funds for specific projects. Virtuals has decided to redirect these funds directly to creator wallets, addressing builder feedback. According to a Metaverse Post article, 40% of SubDAO fees are now returned to creators, with plans to redistribute previously accumulated fees to active developers.

• Points System: Virtuals introduced a points system to make token launches fairer. They also retroactively rewarded early supporters (OGs), showing they’re listening to the community.

• GAME/ACP: These are new innovations. ACP, or Agent Commerce Protocol, aims to create a trustless economic layer for AI-to-AI commerce, solving issues like transaction failures and miscommunication, as explained by Delphi Digital. GAME’s specifics are less clear, but it’s part of Virtuals’ push to stay ahead in the AI space.

Additionally, Virtuals updated its recommended tokenomics: 50% for the team/treasury, 37.5% for pre-sale, and 12.5% for liquidity pools. This structure aims to balance incentives for builders, early investors, and market liquidity.

Miko’s Thoughts: What’s Working and What Needs Improvement

Miko’s tweet doesn’t just recap the updates—it offers a builder’s perspective on what’s working and what could be better. Here’s a summary of his insights:

The Good

• Points System and Tokenomics: Miko appreciates the new points system and tokenomics, noting they’ll lead to fairer token distribution, a more diverse holder base, and enough reserves for building and community incentives. This aligns with Virtuals’ goal of creating a sustainable ecosystem.

• Innovation: He gives props to Virtuals for innovating with ACP and GAME, even though they’re still in early stages. Miko acknowledges the competition—like Anthropic’s MCP—but highlights Virtuals’ unique angle around verifications, which could set it apart.

The Concerns

• SubDAO Fund Delays: Miko points out that the process to distribute SubDAO funds is slower than expected, with a form that asks too many questions for funds that technically belong to the projects. He wonders about Virtuals’ criteria for distribution, a sentiment echoed by @IGLIVISION in the thread, who urges Virtuals to release funds without hesitation.

• Tax Allocation to ACP: While the tax allocation to creators increased to 70%, Miko disagrees with the remaining 30% going to ACP. He questions its purpose, noting a lack of clarity from Virtuals. He argues that tying the launchpad to ACP might limit its appeal as a general AI launchpad, a concern shared by @MohithAgadi, who suggests ACP participation should be opt-in.

• Tax Flexibility: Miko proposes that Virtuals allow teams to toggle taxes above the current 1% cap. He cites projects like $PAAL, which have higher fees and are thriving, as this helps teams capture value from speculation rather than letting it go to traders.

• Liquidity Pool Suggestion: One of Miko’s biggest suggestions is splitting liquidity pools between VIRTUAL and USDC. In DeFi, liquidity pools—like those explained by Bitstamp—help stabilize asset prices. Pairing VIRTUAL with a stablecoin like USDC could reduce volatility and make the ecosystem more attractive to investors.

Community Reactions: A Mixed Bag

The thread shows a range of reactions from the community:

• @CoptersApples and @The91Polo are optimistic, with the latter noting that small steps like these can lead to big changes.
• @IGLIVISION shares Miko’s frustration about SubDAO fund delays, emphasizing the need for faster distribution.
• @MohithAgadi agrees with Miko on making ACP opt-in, arguing that teams should have the freedom to pursue their own roadmaps without a mandatory 30% tax allocation.
• @Cody_Gains praises Miko for “steering the ship,” highlighting his underappreciated role in providing constructive feedback.

Why This Matters for the AI and Crypto Space

Virtuals Protocol is carving out a niche in the growing intersection of AI and blockchain. By addressing builder feedback, adjusting tax allocations, and introducing systems like points and ACP, they’re positioning themselves as a leader in the AI agent economy. However, Miko’s critique underscores the importance of transparency and flexibility in decentralized platforms. For Virtuals to maintain its edge—especially with competitors like Anthropic’s MCP in the mix—they’ll need to balance innovation with community trust.

The suggestion to split liquidity pools between VIRTUAL and USDC is particularly noteworthy. In DeFi, pairing a volatile token with a stablecoin helps maintain price stability, which could make Virtuals’ ecosystem more robust and appealing to both builders and investors.

What’s Next for Virtuals Protocol?

Miko’s tweet and the community’s reactions highlight a pivotal moment for Virtuals Protocol. The team’s willingness to listen and iterate is promising, but they’ll need to address concerns around SubDAO fund distribution and ACP transparency to keep builders on board. As the AI agent space heats up, Virtuals’ ability to innovate while maintaining a builder-friendly environment will be key to its success.

What do you think about Virtuals’ updates? Are you a builder with thoughts on ACP or the points system? Drop your comments below!