The explosive AI track in 2025: How did AI16Z + ELIZA succeed?

market opportunity

The global asset management industry is growing rapidly, with assets under management (AUM) reaching US$120 trillion by the end of 2023 and expected to reach US$171 trillion by 2028. Growth has brought challenges, however, as the rise of low-cost passive funds has increased competition, forcing traditional managers to innovate and become more efficient.

 Source: pwc research

Meanwhile, the global AI market is expected to exceed US$1.8 trillion by 2030, reshaping the industry by streamlining processes and creating new opportunities. In the crypto space, stand out with AI-driven solutions to manage liquidity and Web3 token economics. This opens the door for projects like AI16Z and ELIZA to deploy intelligent agents efficiently.

 Source: Grand View Research

This article explores how AI16Z and ELIZA stand out in the rapidly evolving AI and crypto fields, including their operations, market potential, and unique advantages.

Inside the project

AI16Z: Redefining venture capital

AI16Z emerged as an AI-driven venture capital fund that combines AI analysis with community insights to challenge the norms of traditional investment. The fund raised 420.69 SOL through the ICO of DAOS.FUN in October 2024. Today, the fund has more than $25 million in assets under management and its market capitalization has exceeded $2 billion, demonstrating its ability to attract capital and attention in an increasingly competitive market.

 Source: AI16Z

At the heart of AI16Z’s success lies the ELIZA framework , a multi-agent simulation platform that combines AI-driven analytics with input from a decentralized community. This infrastructure leverages a trust market to filter reliable signals from large amounts of data, including DAO proposals, social media activity, and Telegram discussions. By assigning trust scores, the system ensures as much as possible that investment decisions are based on solid intelligence rather than noise.

 Source: AI16Z Whitepaper

AI16Z is redefining venture capital by focusing on assets impacted by viral content on the Internet, such as cryptocurrencies, memecoins, and NFTs. The fund uses AI to analyze these speculative markets and execute trades to ensure liquidity is maintained amid market fluctuations.

What makes AI16Z unique?

• AI-driven decision-making : The fund’s autonomous agent, Marc AIndreessen, combines advanced AI with human-like intuition to optimize trading in meme-driven markets, echoing a16z’s legacy.
• Meme Culture Meets Venture Capital : Aligning with internet culture, AI16Z highlights the growing influence of memes in Web3 and crypto markets.
• Transparent DAO : Through its DAO on DAOS.FUN, token holders participate in governance in a fully automated and transparent system.

How it works AI16Z

• Fundraising : The DAO conducts a week-long token sale to raise funds at a fixed price.
• Trading and investing : After raising funds, creators invest in the Solana protocol, leveraging AI for optimal trading decisions.
• Performance and token pricing : Tokens are traded on virtual AMMs, with prices linked to fund performance, and downside protection limited to initial funding.
• Maturity and Payment : At fund maturity, profits are distributed in SOL. Token holders can burn tokens to claim assets or sell tokens based on fund performance.

 Source: Daos.fun

ELIZA Decrypted: Transforming the Framework of AI and Web3

The ELIZA framework powers AI16Z by creating and managing autonomous AI agents optimized for diverse markets. As AI agents transform industries, ELIZA stands out by providing efficient tools for building and deploying these agents.

• Autonomous applications : ELIZA’s modular design supports rapid prototyping and is suitable for multiple uses such as games, transactions, customer service, and participation.
• Mass customization : Its character file system makes it possible to provide customized experiences for niche markets such as AI-driven social interaction, DeFi, and entertainment.

 Source: Eliza Documentation

AI agents designed specifically for blockchain ecosystems are a promising market segment, and ELIZA bridges this gap by enabling agents to securely interact with smart contracts, execute transactions, and autonomously manage tasks. As the concept of tokenized AI agents grows, ELIZA provides the infrastructure for projects to issue tokens related to the agent’s performance or utility.

Key features and use cases of ELIZA:

Open source AI ecosystem

The rise of open source frameworks demonstrates the power of community-driven development. ELIZA's development model leverages this approach, driving rapid innovation and adoption .

• Community Contributions : A growing library of plugins and tools built by contributors enhances ELIZA's functionality and appeal.
• Developer Adoption : With thousands of contributors already participating, ELIZA is becoming the platform of choice for building AI agents, accelerating their network effects.

Adoption of ELIZA is exploding, with thousands of developers contributing to its GitHub and Discord communities. Its plugin ecosystem is growing every day, driven by ai16z’s Creator Fund, which rewards innovation and builds momentum for the platform’s future growth.

 Source: elizaos.com

ELIZA's actions

ELIZA's framework empowers the following agents:

• Marc AIndreessen : A transaction-focused AI that leverages ELIZA’s trust engine for secure and autonomous decision-making.
• Degen Spartan AI : A bold, meme-savvy agent with a strong social presence and plans for deeper ecosystem interactions.
• The Swarm : A vision of decentralized AI collaboration where agents work transparently and collectively within the ecosystem.

Creator Fund

The Creator Fund is a milestone in ai16z’s mission to develop the ELIZA framework ecosystem. This community-driven initiative supports developers and creators, thanks to Elijah donating 11% of his ai16z tokens – a testament to his commitment to innovation and long-term alignment with the project’s vision.

 Source: Elizaos.github

Distributed through vesting contracts, the fund provides creators with stable rewards as they reach milestones, allowing them to focus on impactful work without the distraction of short-term pressures. By attracting talent, reducing the risk of token dumping, and strengthening the ecosystem, the fund paves the way for continued growth and adoption.

In addition, they are also exploring OTC transactions to enhance liquidity and support the token economy. Details on grants and funded projects will be announced soon, marking a new era for the ELIZA community.

Teams and partnerships

Eliza Labs was founded by Shaw , a key figure in the field of AI agents and deeply involved in the open source community. He is best known for his pioneering work with Parzival on Project 89 , which developed the first AI agents capable of adaptive, context-aware interactions.

 Source: Google

Over the years, Shaw has operated anonymously, focusing on building technology rather than personal recognition, cultivating strong partnerships within the open source community. His commitment to transparency and innovation has made Eliza Labs a leader in AI and Web3 trends.

Recently, Eliza Labs partnered with Stanford University’s Future of Digital Currency Initiative (FDCI) to explore how autonomous AI agents can revolutionize digital currency systems. The collaboration is expected to launch in early 2025 and will focus on developing trust frameworks, multi-agent economic systems and decentralized governance protocols for AI agents.

Additionally, Eliza Labs is partnering with ARC to accelerate progress toward general artificial intelligence (AGI). This collaboration combines ARC’s expertise in behavioral learning with Eliza’s framework to drive innovation in gaming, simulation and robotics. The main work includes providing access to ARC's SDK, enhancing behavioral models and large language models (LLMs), and building advanced simulation environments.

 Source: @ARCagents

Eliza has also quickly become a key framework for AI innovation and has been integrated into various projects, including a collaboration with Ash, a well-known three.js developer known for creating cutting-edge browser-based game engines. Together they are working on a deep Eliza integration on Hyperfy that enables AI agents to exist and interact in immersive 3D worlds.

Tokenomics

The $AI16Z token is the cornerstone of its ecosystem, integrating governance, incentives and value creation. Token holders participate in shaping the strategy through the DAO, while using the AI ​​agent of the $ELIZA framework to contribute income or tokens to create a stable value stream. By the time the fund expires in October 2025, SOL profits will be distributed, and holders can burn tokens to exchange for assets or sell through the bond curve to ensure value and liquidity.

AI16Z has a fixed token supply of 1.1 billion, is fully circulated, and has a current market capitalization of $2 billion. The DAO manages the supply, ensuring that no new tokens are minted without approval. Allocations prioritize development, liquidity, and contributor rewards, with a structured unlocking schedule designed to maintain stability and prevent supply shocks.

 Source: [Shaw on X](https://x.com/shawmakesmagic/status/1856360724001632581)

AI16Z benefits through several monetization avenues:

• Agent Contribution : AI agents on ELIZA contribute a portion of their tokens to the DAO.
• Service Fee : Pay a fee for deploying AI agents using ELIZA’s platform, such as Community Launchpad.
• Enterprise Solutions : As ELIZA gains traction, its open framework appeals to enterprises automating and AI-driven workflows.

Participation in the ai16z DAO is voluntary, with projects providing a portion of their token supply. On Vvaifu, a well-known launch pad, launching an AI agent through the ELIZA framework requires paying 1.5 SOL and 5% of the agent token supply.

competitors

The intersection of AI and blockchain is spurring a wave of innovation, with projects like AI16z, Griffin, Arc, and Virtuals leading the way. These projects are focused on developing or funding ecosystems where AI agents can be created and monetized. While they both aim to advance the field, their different approaches and applications set their competitive paths.

AI16z adopts a venture capital model to invest in high-potential AI agents and concepts in various fields. It uses frameworks like ELIZA and open source strategies to enhance its ability to shape the AI ​​agent infrastructure landscape. By driving community-driven development, AI16z accelerates adoption and innovation, although reliance on external contributions can sometimes slow iteration cycles.

Griffin is targeting the DeFi field, using the speed of Solana to automate financial operations through AI agents. Meanwhile, Arc focuses on its open source framework called Rig, which is designed to build portable, modular and lightweight AI agents in Rust, while ELIZA focuses on large-scale basic AI model infrastructure.

Virtuals takes a slightly different approach, with a dedicated launchpad for AI agents; it has positioned itself as a market leader and early mover.

Among them, AI16z stands out for its financial and strategic impact, accelerating the growth of its AI-focused portfolio. Its use of ELIZA as an open source framework further strengthens its position, allowing rapid prototyping and widespread adoption of AI agent technology.

While larger projects like AI16z and Virtuals benefit from larger market capitalization and mature ecosystems, smaller players like Arc or Swarms offer the potential for higher returns due to their lower market caps and adoption rates, providing Investors offer asymmetric opportunities. Ultimately, choosing these programs comes down to personal risk appetite. Regardless of which project ultimately emerges as the leader, the AI ​​and blockchain space will see significant growth, creating rich opportunities for innovation and adoption.

Bullish fundamentals

• AI16Z quickly gained momentum, achieving significant AUM growth in just a few months, reflecting strong investor confidence in its innovative approach. The token’s rapid price rise, with a market capitalization exceeding $2 billion, also highlights strong demand and growing investor interest.
• ELIZA's developer base is rapidly expanding, becoming the #1 trending GitHub repository with far more engagement than competitors such as Bittensor. Its plugin ecosystem is growing every day, thanks to ai16z’s Creator Fund, which rewards innovation and builds momentum for the platform’s future development.

     Source: Github repositories 

     Source: GitHub Star History

• AI16Z’s innovative token economics ensures continued value accumulation. It generates revenue through AI agent contributions, launch pad fees, and adoption, tying the token’s value to the success of its ecosystem. The decentralized DAO model also allows token holders to actively shape the direction of AI16Z while sharing in profits, aligning incentives within the community.
• AI16Z's FDV positions it between emerging players and market leaders, offering significant growth potential driven by solid fundamentals and a growing community. ELIZA's modular framework allows for rapid prototyping, customization and cross-platform integration, enabling developers to create versatile AI agents for a variety of applications.

     Source: Elizaverse Observatory

• ELIZA’s vision for a decentralized “AI community” aims to create a network of collaborative agents across the ecosystem, positioning the project as a leader in AI-driven Web3 innovation.
• Taking into account the expectations of the official ELIZA agent launch pad, executing token contributions through the smart contract level may bring further growth and value-added to the ecosystem.

Bearish fundamentals

• The extreme volatility of the memecoin/AI agent market brings risks to AI16Z investments, as rapid price fluctuations can lead to significant losses if the trading strategy fails to adapt quickly. It also raises questions about whether the project can handle the market downturn.
• While ELIZA's open source framework fosters innovation, sustaining community interest and contributions over the long term can be challenging, especially if incentives weaken or competing projects begin to take market share.
• Monetization of open source frameworks like ELIZA relies on voluntary contributions to AI16Z. While many projects will donate a portion of their tokens, not all will choose to align with AI16Z. This can create potential challenges in capturing long-term value and building sustainable revenue streams.
• If AI16Z fails to scale or maintain its competitive advantage, better-funded and better-structured projects such as Virtuals may overshadow AI16Z.
• Regulatory uncertainty surrounding AI agents and crypto markets could impact adoption and operational flexibility, posing risks to the project’s long-term growth.