Preface

With the continuous development of artificial intelligence (AI) and blockchain technology, the integration of the two has gradually become a new trend in the industry. AI has powerful data processing, analysis, and predictive capabilities, which can provide intelligent support for blockchain applications, such as optimizing trading strategies and improving security monitoring levels. Blockchain, on the other hand, provides a secure and trustworthy data storage and sharing environment for AI, ensuring the authenticity and tamper resistance of data. At the same time, through token-based incentive mechanisms, it promotes the development of the AI ecosystem. This integration brings innovative opportunities to multiple fields, especially in the financial sector, laying the foundation for the construction of decentralized financial artificial intelligence (DeFAI) applications.

The high complexity of the cryptocurrency market makes investors urgently need intelligent investment tools to assist in decision-making, while the demand for innovative applications in Web3 continues to grow. In addition, the investment by industry giants in the field of AI and DeFAI Agents has collectively driven the emergence of Alvalanche DeFAI. It leverages the Avalanche blockchain to build an AI and DeFAI layer, providing innovative services to users. This article will describe in detail its technical foundation, product features, and token economics.

Image Source:https://app.avaxai.org/

Team and Development History

The project was created by Steadefi. Although the detailed resumes of the members have not been fully disclosed, Steadefi, as a DeFi protocol with certain industry experience, has accumulated technical expertise and industry resources to provide strong support for the technical development and market expansion of the AVAXAI project. After receiving support from institutions such as Blizzard, AVenturesDAO, and Avalaunch, the team began the development of the AVAXAI project. At the same time, with support from many institutions such as Ape Terminal and Polkastarter, it indirectly reflects the team’s connections and influence in the industry, which is beneficial for the project to obtain resources and promote development.

The platform AIvalanche DeFAI Agents has been launched, providing users with services to create, trade, and interact with AI and DeFAI intelligent agents. The platform has introduced various types of intelligent agents, such as DeFi Quant Agents, Meme Lord Agents, etc., and has achieved certain results in the market, showing the return on investment (ROI), social score, number of releases, and sales volume of different intelligent agents, indicating that the project has gained some attention and application in the market. In the future, the project also plans to introduce more types of intelligent agents, continuously expanding its business scope in the field of AI and blockchain integration.

Image source:https://app.avaxai.org/

Technical Foundation

The project deeply integrates AI with blockchain technology, and its technical foundation demonstrates uniqueness and innovation, providing strong support for the project to build AI and DeFAI ecosystems in the Web3 field. The following is a detailed analysis from aspects such as large language model applications, blockchain underlying architecture, intelligent agent interaction technology, etc.

1. Application of LLM Model

The protocol leverages a professional LLM model to conduct a thorough analysis of the cryptocurrency market. The model can quickly collect and process massive market data, covering various aspects such as price fluctuations, trading volume, market sentiment, and macroeconomic indicators. By learning and analyzing these data, the LLM model can accurately predict market trends, providing a basis for automated trading strategies. When assessing the price trend of a cryptocurrency, the model will comprehensively consider factors such as historical price data, current market supply and demand relationships, and the sentiment direction on social media to generate rational trading decisions, thereby improving trading accuracy and profitability.

2, Blockchain Integration

The Avalanche blockchain has excellent performance, and its unique consensus mechanism enables the network to achieve high throughput and fast transaction confirmation. When dealing with transactions related to AI and DeFAI intelligent agents, it can meet the needs of a large number of users to simultaneously create, transact, and deploy operations. Compared with traditional blockchains, the Avalanche blockchain can process more transactions in a short time, reduce user waiting time, and improve user experience.

By using advanced encryption technology and a distributed node network, Avalanche blockchain ensures the security and decentralization of data. The transaction data of AI and DeFAI intelligent agents, ownership information, and user privacy data are securely stored on the blockchain, making them difficult to tamper with or steal. At the same time, the decentralized architecture avoids single point of failure issues, enhancing system stability and reliability.

3. Intelligent agent interaction technology

AVAXAI’s AI and DeFAI intelligent agents have the ability to seamlessly integrate across multiple platforms, including Avalanche blockchain, Web3 dApps, X, Telegram, etc. Through deep integration with these platforms, the intelligent agents can access a wider range of data sources and achieve richer functionality. On the X platform, the intelligent agents can monitor users’ social dynamics and market sentiments in real-time, using this information as a reference for trading decisions; on Telegram, users can interact with the intelligent agents in the form of chatbots, conveniently obtaining investment advice and managing their investment portfolios.

Product Features

The platform has built a comprehensive functional system around AI and DeFAI intelligent agents, covering the creation and management of intelligent agents, trading, multi-platform integration, token economic incentives, and other aspects, aiming to provide users with a convenient, efficient, and diverse service experience.

（1）AI and DeFAI intelligent agents create and manage

Users can easily create a variety of AI and DeFAI agents. During the creation process, with the help of tools and templates provided by the platform, customization can be completed without a deep technical background. For example, Defi Quant Agents can real-time analyze on-chain data to optimize strategies, track liquidity, and maximize DeFi returns; Meme Lord Agents can analyze Web3 real-time data, create popular memes, and drive community interaction. After creation, the platform provides a series of management tools to track agent performance metrics, analyze interaction data, and provide optimization suggestions to help users continuously improve agent efficiency and value.

Image source:https://www.avaxai.org/#about

(2) Intelligent Agent Trading

There is a dedicated AI Agent Marketplace, providing users with an intelligent body trading venue. Users can buy and sell various types of intelligent bodies here. Each intelligent body has been tokenized, with unique statistical data and proven Return on Investment (ROI). Users can trade and monetize them like trading assets, promoting the circulation of intelligent bodies in the market and creating economic opportunities for users.

Image source:https://www.avaxai.org/#about

(3) Multi-platform Integration

AVAXAI intelligent agents have strong integration capabilities and can seamlessly integrate into Avalanche blockchain, Web3 dApps, X (formerly Twitter), Telegram, and other platforms. By integrating with these platforms, the intelligent agent can access a wider range of data sources and achieve richer functionality. On the X platform, the intelligent agent can monitor users’ social dynamics and market sentiments in real time, using this information as a reference for trading decisions; on Telegram, users can interact with the intelligent agent in the form of a chatbot, conveniently obtaining investment advice and managing their investment portfolio.

Image Source:https://www.avaxai.org/#backers

(4) Developer Tool Support

Providing developers with a comprehensive and friendly toolkit. These tools make it easy for developers to quickly integrate AI intelligent agents into various dApps, helping developers create smooth application experiences in the Avalanche ecosystem, reducing development barriers, accelerating the development process of AI and blockchain integration applications, and enriching the platform’s application scenarios and ecological diversity.

Token Economy

AVAXAI’s token economic model is the core driving force of its ecosystem, aimed at promoting user participation, ecosystem growth, and long-term sustainable development through reasonable incentive mechanisms.

AVAXAI has an initial total supply of 1 billion tokens, with a fully circulating market value of approximately $2.67 million as of February 10, 2025.

The official initial token distribution details have been announced, with 23.3% for public financing; 21.7% for private strategic financing; 5% allocated to the team; 2.5% allocated to partners; 8.5% for incentive mechanisms; 4.5% for ecological development; 4.5% for future protocol development and marketing activities; the remaining 30% will be used for liquidity pools and liquidity provided by centralized exchanges.

Image source:https://www.avaxai.org/avaxai

AVAXAI has been listed on Gate.io, and users can trade on its platform.

Image Source:https://www.gate.io/trade/AVAXAI_USDT

The AVAXAI token has many applications in the ecosystem, including:

(1) Payment and Trading: Users can use AVAXAI to pay for AI model training, inference service fees, or buy and sell AI models in the decentralized AI marketplace.

(2) Computing power incentive: Users who contribute computing resources (such as GPU, CPU) will receive AVAXAI as a reward.

(3) Data Contribution Reward: Users or institutions providing high-quality data can receive AVAXAI rewards through data contribution.

(4) Governance Participation: AVAXAI holders can participate in ecosystem governance decisions, such as protocol upgrades, parameter adjustments, etc.

(5) Staking and Earnings: Users can earn additional income by staking AVAXAI, while also enhancing the security and stability of the network.

(6) Ecological Construction: Tokens are used to incentivize developers to create and release AI models, promoting technical innovation and application expansion of the ecosystem.

Image source:https://www.avaxai.org/avaxai

The team stated that the token will implement a deflation mechanism, and token burning is one of the core strategies of the AVAXAI deflation mechanism. By regularly burning a portion of the tokens, the circulating supply in the market is reduced, thereby enhancing the scarcity and value of the token. Specific burning scenarios include:

(1) Transaction fee destruction: In the AVAXAI ecosystem, a portion of transaction fees (such as AI model trading, computing power leasing, etc.) will be permanently destroyed.

(2) Penalty for Staking: If a user engages in malicious behavior (such as double spend attacks) during the staking period, part of the staked tokens will be destroyed.

(3) Regular destruction activities: The project party may repurchase and destroy AVAXAI tokens from the market regularly according to the ecological development situation.

Risk Warning

Market Risk: The cryptocurrency market is highly volatile, and AVAXAI intelligent agents’ earnings are easily affected, which may lead to losses and subsequently reduce user trust. At the same time, the Web3 market is highly competitive, and if projects do not continue to innovate, market share may be squeezed.

Regulatory Risks: The regulatory policies in the AI and blockchain industries are complex and ever-changing. AVAXAI operates globally, and if it cannot adapt in time, it may face compliance risks such as business restrictions and fines, which could affect normal operations.

Token Risk: The value of AVAXAI tokens is influenced by market supply and demand, project development, and other factors. If the economic model is unreasonable or market acceptance decreases, the token price will fluctuate significantly, coupled with the overall market situation in the cryptocurrency market, increasing investment risks.

Operational risk: Project operation relies on team management and execution. If the team makes wrong decisions or operates inefficiently, it will lead to development delays and poor promotion. In addition, breaches of contract or operational difficulties by partners will also have adverse effects on the project.