FAQ
Overview and Basics
What is the AI Protocol Version 3 Upgrade?
The AI Protocol V3 enables the development of a community-driven, secure, and adaptive, decentralized physical infrastructure (DePIN) for tokenized AI Systems.
The AI Protocol V3 marks a significant advancement over its predecessors by introducing a range of innovative features including ALI Agents, Hives, distributed GPU and Storage Clusters, tokenized AI Models and Datasets, and tokens that incorporate non-custodial embedded liquidity. It empowers users with community-powered IPs and enables trustless creative collaboration. These enhancements, along with several other improvements, collectively establish the AI Protocol V3 as the most advanced decentralized AI tech stack in the world.
How does the V3 upgrade change legacy assets in the AI Protocol Ecosystem?
Intelligence Pods
With previous Version of the AI Protocol, Pods provided personality parameters at first, and then they evolved to provided intelligence to dApps. Now, they have taken the next evolutionary step to provide compute resources to Hives.
In the AI Protocol's latest advancement, Intelligence Pods have evolved as on-chain representations of off-chain compute, crystallizing a novel approach to decentralized computational resources. Previous iterations of AI-powered assets (like iNFTs) within the AI Protocol have relied on centralized access to computational resources, which restricted their scalability and interoperability. With the launch of the AI Protocol V3, Intelligence Pods have taken the next evolutionary step to provide compute resources to Hives, helping assets within the AI Protocol’s ecosystem achieve decentralized access to AI Models and other resources.
Intelligence Pods can now be upgraded to have a Level 5 Intelligence Level, which enables it to be fused with any ALI Agent to become a Level 5 ALI Agent. Any Level 5 ALI Agent can interact with the AI Protocol’s Hive Registry Contract to create a Hive.
Any Intelligence Pods that are connected to Hives are rewarded for their AI Services in relation to the Level of the Pod, including Level 5 ALI Agents. All Pods are rewarded by the Hive in its unique Hive-native utility token.
iNFTs
Previously, any Protocol-supported NFT can be turned into an iNFT via the AI Protocol on Noah’s Ark. This is achieved by fusing the NFT with another ERC-721 asset called the Intelligence Pod. Once the NFT is fused with an Intelligence Pod, it acquires its own unique AI-powered personality.
While iNFTs maintain their capacity to deliver personalized AI services and experiences to their owners, the Intelligence Pods connected to them have now evolved to be able to provide compute resources to Hives. This means any iNFT (including Revenants) can be connected to a Hive, and its fused Pod will provide the resources described above, while continuing to retain the utility it always previously held. In the same manner Pods alone are rewarded relative to their Level, the iNFT would be rewarded relative to the level of their fused Pod.
ARKIVs
With the upgrade to V3 of the AI Protocol, ARKIVs can be connected to Hives in the same manner as Intelligence Pods, however, ARKIVs will provide data storage capacity for those Hives, and be rewarded for it. ARKIVs that are connected to a Hive are rewarded for their AI Services in that Hive’s unique Hive-native utility token.
ALI Utility Token
In the past, the ALI Utility Token was an important transfer of value and utility across the AI Protocol’s V1 and V2 ecosystem, and remains an integral part of those very same functions. With the upgrade of the AI Protocol to V3, the ALI Token takes on even more responsibility as an essential unit of tokenized intelligence, particularly to serve functional on-chain and off-chain processes.
With the upgrade of the AI Protocol to V3, ALI is still used to upgrade the Intelligence Levels of Intelligence Pods and iNFTs and as a governance token for voting on Snapshot proposals. ALI can also be used to pair with Hive-native tokens for Hive owners to create Liquidity Pools.
What kinds of new AI systems and assets have been introduced into the AI Protocol Ecosystem?
ALI Agents
ALI Agents are advanced generative and agentic AI assets on ALIagents.ai, offering a decentralized alternative to traditional AI models. They allow for high customization and are managed by the community, ensuring their evolution aligns with collective input and ethical standards. ALI Agents are a decentralized alternative to Generative Pre-trained Transformers (GPTs). ALI Agents represent a fundamental shift from centralized AI systems, empowering individual and community-driven ownership, shared rewards, and crowdsourcing of IP creation and content.
ALI Agents have an ERC-721 Token (NFT), which enables ownership, property rights, access gating, etc. - and an Identity that is represented on the NFT’s metadata.
ALI Agents can have embedded liquidity in the form of:
A bonding curve smart contract integrated,
and, if the ALI Agent owner wishes,
A native ERC-20 token and a liquidity pool
On-chain representation of an ALI Agent = NFT + Embedded Liquidity + Hive Smart Contract
ALI Agents are created by, and draw their AI resources and services from "Hives," using crowdsourced storage and GPU compute resources that Hives curate and distribute to the ALI Agents created by them.
ALI Agent Embedded Liquidity (Keys and Tokens)
Two notable features of ALI Agents are their capability to issue unique digital assets, one being ALI Agent "Keys," which come with non-custodial embedded liquidity, and the other being ALI Agent Tokens, which can incentivize and reward a ALI Agent's fandom and community.
Level 5 ALI Agents
When an ALI Agent and a Level 5 Intelligence Pod are fused together, a Level 5 ALI Agent is created. A Level 5 ALI Agent can be immutably recorded into the Hive Registry smart contract, producing a Hive, with its own Hive-Native utility token and a Liquidity Pool launched with it.
The Hive Registry Contract enforces that a new Hive can only be created by utilizing a Level 5 Intelligence Pod. Any ALI Agent fused with a Level 5 Pod can utilize the Hive Registry Contract to create one Hive.
Hives
With the upgrade to V3, the AI Protocol allows for the creation of Hives.
When a ALI Agent and a Level 5 Intelligence Pod are fused together, a Level 5 ALI Agent is created. A Level 5 ALI Agent can be immutably recorded into the Hive Registry smart contract, producing a Hive, with its own Hive-Native utility token and a Liquidity Pool launched with it.
A Hive is an AI system that allows ALI Agents to have decentralized access to AI models and data, storage, compute power, and other resources - by enabling trustless coordination between various on-chain and off-chain components of the AI Protocol. In order for a Hive to perform its functions, it requires a variety of smart contracts and tokenized assets to self-execute a system of complex programs and on-chain events.
Hives are capable of curating the provision of compute and storage power, represented by Intelligence Pods and ARKIVs respectively, processing complex AI systems, models, and data I/O, and in turn providing these AI Services to ALI Agents to consume. These same Hives are also capable of processing the complex transactions of AI Protocol-compatible assets, ALI, ETH, and Hive-Native Tokens, distributing them as rewards to the various participants in the Hive ecosystem in relation to the resources they provide and consume.
Hive Embedded Liquidity (Hive-native Utility Tokens)
A Hive is a system that allows ALI Agents to have decentralized access to AI, storage, and other resources by enabling trustless coordination between various on-chain and off-chain components of the AI Protocol. Any iNFT that has been upgraded to become a Level 5 ALI Agent has the ability to create a Hive, and with it, a Utility Token that is issued by the Level 5 ALI Agent’s smart contract.
This Hive-native utility token is minted by the Hive, and the owner of the Hive can choose to create a Liquidity Pool and execute Airdrops to participants of their Hive.
AI Protocol-Compatible Assets
How can I create an ALI Agent?
The process of creating an ALI Agent is entirely on-chain and decentralized, and any entity or individual aiming to create a new ALI Agent can leverage the comprehensive documentation, guidelines, and smart contracts provided by the AI Protocol.
Are ALI Agents NFTs?
An ALI Agent is a tokenized AI System that has specialized functionality and embedded liquidity. When an ALI Agent is created, it becomes tokenized as an NFT on the Ethereum Mainnet, and launches its own embedded liquidity as a bonding curve.
Do I have to have a crypto wallet to create an ALI Agent?
While there are decentralized applications, like ALIagents.ai, which provides an interface to create ALI Agents, but anyone can use the AI Protocol’s GitHub documentation to create an ALI Agent using an NFT with their own self-custodied wallet.
How can I convert an iNFT into an ALI Agent?
The process of creating an ALI Agent from an iNFT is entirely on-chain and decentralized, and any entity or individual aiming to convert an iNFT into a new ALI Agent can leverage the comprehensive documentation, guidelines, and smart contracts provided by the AI Protocol.
What kinds of utility does an ALI Agent have?
The ALI Agent may utilize one or more AI Models along with additional components (storage, datasets, etc) of the AI Protocol to form a specialized functionality. For instance, an ALI Agent could be configured to serve as an image generator, an article writer, an entertaining character, act as a personal companion, function as a travel agent, provide tutoring in mathematics, enable video creation, and much more.
A notable feature of these ALI Agents is their capability to issue unique digital assets, termed "Keys," which come with non-custodial embedded liquidity. Anyone can buy or sell a Key of an ALI Agent by reading the AI Protocol’s GitHub documentation.
How can I convert an NFT into an ALI Agent?
The process of creating an ALI Agent from an NFT is entirely on-chain and decentralized, and any entity or individual aiming to convert an NFT into a new ALI Agent can leverage the comprehensive documentation, guidelines, and smart contracts provided by the AI Protocol.
Can I convert my Revenant into an ALI Agent?
All Revenants are iNFTs, so yes, the Revenant can become an ALI Agent by leveraging the comprehensive documentation, guidelines, and smart contracts provided by the AI Protocol.
Can I buy or sell an ALI Agent?
Yes, ownership of an ALI Agent is not limited to its creator, so anyone can buy or sell an ALI Agent on any blockchain asset arketplace that supports the transactions of ALI Agents, without limitation.
Can I transfer an ALI Agent from one wallet to another?
Yes, ownership of an ALI Agent is not limited the owner’s wallet, and can be transferred as an NFT asset between wallets without limitation.
What is an ALI Agent Key?
Upon the creation of an ALI Agent, a bonding curve is deployed through a smart contract, granting the creator at at least one initial ALI Agent Key. This Key represents a tokenized stake in the ALI Agent's bonding curve. Anyone can buy or sell Keys of an ALI Agent by purchasing with the ALI Utility Token.
What is a bonding curve?
A bonding curve is a mathematical formula that dynamically determines the price of ALI Agent Keys based on their current supply and demand within the market. This mechanism ensures a fair and transparent pricing model that adjusts in real-time, as keys are bought and sold.
What is an ALI Agent Token?
An ALI Agent Token is an ERC-20 Token, issued by an ALI Agent's Creator and/or Key Holders, to expand the creative economy of the Agent's community. The issuer of the Token can choose to use ALI Agent Tokens as Airdrops and/or create an ALI Agent Token Liquidity Pool, allowing anyone to participate in this economy through an ALI Agent Token exchange.
How can I fuse a Level 5 Intelligence Pod with an ALI Agent?
The process of creating a Level 5 ALI Agent by fusing a Level 5 Intelligence Pod with an ALI Agent is entirely on-chain and decentralized, and any entity or individual aiming to do so can leverage the comprehensive documentation, guidelines, and smart contracts provided by the AI Protocol.
How can I upgrade an Intelligence Pod to Level 5?
Any Level 1-4 Intelligence Pod or iNFT can be upgraded to a Level 5 Intelligence Pod using the Pod upgrade function on the Noah’s Ark dApp.
Can I fuse an iNFT, that already contains a Level 5 Intelligence Pod, with an ALI Agent to create a Level 5 ALI Agent?
Yes, just follow the same documentation, guidelines, and smart contracts provided by the AI Protocol as you would if you were fusing a Pod that isn’t already an iNFT..
Can I continue to use my iNFT in the way I’ve always used my iNFT, even if it’s now a Level 5 ALI Agent?
Yes, while the AI Protocol’s V3 upgrade evolved iNFTs and their Intelligence Pods to deliver added capacity to provide compute power to Hives, iNFTs maintain their ability to deliver personalized AI services and experiences to their owners.
Can I unfuse a Level 5 ALI Agent, converting it back to a Level 5 Intelligence Pod/iNFT and ALI Agent separately?
No, once a Level 5 ALI Agent is created, it cannot be broken down into its previous parts.
Hives
Can I connect my ALI Agent to more than one Hive?
No, an ALI Agent is created by one Hive and is permanently connected to that Hive.
How can I create or join a Hive?
The AI Protocol allows the creation and tracking of Hives via the Hives Registry Contract. This contract, among other things, keeps on-chain records of which Hives exist, provides on-chain details of those Hives, tracks the various assets connected with them, and enables tokens to register as ALI Agents.
A new Hive, therefore, can only be created on-chain via the Hive Registry Contract.
It is important to note that as per this release of the AI Protocol V3, new Hives can only be created on the Ethereum Mainnet. While the other chains might have deployments of the Hive Registry Contract, they would not be able to use the contract to create a new Hive.
How can I update or manage a Hive?
After a Hive is created, most of its on-chain components (like the Utility Token, Payments and Rewards Contracts, etc.) are deployed automatically.
The Hive’s creator is expected to follow the documentation and guidelines of the AI Protocol in order to deploy and start the various off-chain components of the Hive. These actions may include: running the software that enables the inference cluster of GPUs and starts the Storage Units cluster, configuring the rewards smart contract, setting up the event trackers for on-chain activities, etc.
Read the AI Protocol's GitBook to learn how to Create/Update/Join a Hive
What is the Hive Registry?
Hive Registry Contract is a smart contract that enables the creation of new Hives, maintains an on-chain record of all the Hives and their details, enables ERC-721 tokens to register as ALI Agents, enables Assets to be connected to a Hive and keeps an on-chain record of those connects.
What is the Propolis AI Hive, and why is it important?
Propolis AI is the first Hive ever created and is de facto the genesis of all original ALI Agent creations. Since all new Hives must be created by fusing a ALI Agent with a Level 5 Intelligence Pod, all new Hive creation in the future can be traced back to ALI Agents created by the Propolis AI Hive.
What kinds of utility does a Hive-Native Utility Token have?
This Hive-native utility token is minted by the Hive, and the owner of the Hive can choose to create a Liquidity Pool and execute Airdrops to participants of their Hive.
How can I launch a Utility Token with my Hive?
Each Hive has its utility token, which is utilized for leveraging tokenomics, facilitating governance and payments, distributing rewards, and incentivizing the creation of assets within its ecosystem. Hive owners can launch a unique utility token native to its Hive by following the comprehensive documentation provided the AI Protocol’s GitHub.
How can I connect my Intelligence Pod with a Hive to provide compute power?
By accessing a Hive’s native site, there will be instructions on how to connect an Intelligence Pod to provide compute power.
How can I connect my ARKIV with a Hive to provide storage capacity?
By accessing a Hive’s native site, there will be instructions on how to connect an ARKIV to provide compute power.
How can I be rewarded by connecting my Intelligence Pod to a Hive?
Depending on the Level of the Intelligence Pod or iNFT that’s connected to a Hive, rewards are distributed by the Hive to the connected Pod, relative to that Intelligence Level. Rewards are distributed in the form of the Hive’s unique utility token.
How can I be rewarded by connecting my ARKIV to a Hive?
Rewards are distributed by the Hive to the connected ARKIV, in the form of the Hive’s unique utility token.
How many Intelligence Pods and/or ARKIVs can I connect to one Hive?
As many as you own and decide to connect. There is no limit.
Can I connect my Intelligence Pod and/or ARKIV to more than one Hive?
No. Intelligence Pods and ARKIVs can only be connected to one Hive at a time.
Can a DAO create/manage a Hive?
That is not a decision the AI Protocol can make for a Hive owner. Ownership organization is the prerogative of a Hive’s owner.
What smart contracts are new in the AI Protocol Version 3?
Hive Registry Contract
A Hive’s Payment Contracts
A Hive’s Reward Distributer
A Hive’s Asset Minter Contracts
Anyone can visit the AI Protocol's GitHub to learn more.
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