The cryptocurrency industry is witnessing transformative developments as two major players make headlines for their groundbreaking strategies and leadership transitions. Ai16z, the agentic artificial intelligence platform, is exploring the launch of its own layer-1 blockchain, signaling a bold step to integrate AI-driven tokenomics into the blockchain ecosystem. Meanwhile, Seraphim Czecker, the influential head of growth at Ethena, has announced his resignation following the protocol’s meteoric rise to the fourth-largest stablecoin by market capitalization.
Ai16z Eyes Layer-1 Blockchain for AI, Tokenomics Overhaul
Ai16z, an agentic artificial intelligence platform, is exploring the launch of its own layer-1 (L1) blockchain network. This initiative forms part of a larger plan to reshape its tokenomics framework, according to a recent governance forum post.
The announcement suggests that ai16z could become the backbone for AI applications within the blockchain ecosystem, combining decentralized technology with artificial intelligence to drive token value and innovation.
At the heart of ai16z’s vision lies an AI agent launchpad akin to platforms like Pump.fun. The project aims to establish the launchpad as the centerpiece of its tokenomics strategy. Contributors have outlined several mechanisms designed to amplify the utility and value of the platform’s native token, $ai16z:
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A percentage of fees from agent launches would be funneled into the platform.
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Holding $ai16z would become a prerequisite for participating in agent allocations.
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The token would play a pivotal role in initial agent offerings.
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Liquidity pools pairing $ai16z with agent-specific tokens would incentivize deeper market integration.
These measures are envisioned to create a self-sustaining economic loop, or “flywheel,” driving continuous value to the $ai16z token.
The proposed L1 blockchain, built with open-source architecture and incentivized nodes, would use $ai16z as its base currency, further embedding the token into the ecosystem.
Launched in October, ai16z has already established itself as a disruptive force in the blockchain and AI sectors. The $ai16z token boasts a market capitalization nearing $1.5 billion, according to CoinGecko.
The platform operates as a decentralized autonomous organization (DAO), led by AI agents powered by its flagship AI operating system, Eliza. Eliza is described as a sophisticated intelligence capable of leveraging collective decision-making for investment purposes.
Within a short span, ai16z has:
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Managed an on-chain liquidity pool with annualized returns of approximately 25%, according to data from Daos.fun.
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Supported a growing ecosystem of over a dozen Eliza-powered Web3 AI agents, as tracked by the community dashboard, Elizas.world.
These agents are already engaged in various on-chain activities, generating millions of dollars weekly, according to a report by VanEck.
Web3 AI: The Broader Landscape
The integration of AI agents into blockchain networks is rapidly gaining momentum. As of December, an estimated 10,000 AI agents are active across various blockchains, with projections suggesting that this number will soar to 1 million by the end of 2025.
In 2024 alone, tokens tied to agentic AI have surged in market capitalization, reaching a collective valuation of $10 billion, largely driven by Q4 activity.
Ai16z’s ambitions signal a broader trend of convergence between blockchain technology and artificial intelligence. The proposed layer-1 blockchain would serve as a dedicated infrastructure for AI agents, potentially establishing ai16z as a leader in this emerging field.
The use of $ai16z as the ecosystem’s base currency would further cement its role in the broader Web3 landscape, while the AI agent launchpad could attract developers and projects seeking innovative ways to deploy intelligent agents.
As 2025 approaches, the year predicted to be transformative for AI agents, ai16z appears poised to capitalize on its early success, leveraging its Eliza operating system and innovative tokenomics to redefine the intersection of AI and blockchain technology.
Ethena’s Head of Growth, Seraphim Czecker, Steps Down Amid Strategic Evolution
In other news, Seraphim Czecker, widely recognized as the driving force behind Ethena’s explosive growth, has announced his resignation as head of growth at the synthetic fiat stablecoin protocol. This decision comes as Ethena, a standout success story in the decentralized finance (DeFi) sector, embarks on a strategic pivot to broaden its offerings and adapt to a rapidly evolving market.
Ethena’s meteoric rise in the DeFi space is nothing short of extraordinary. Since its launch earlier this year, the protocol has climbed to the position of the fourth-largest stablecoin by market capitalization, boasting a valuation of over $6 billion. Reflecting on his journey, Seraphim, who often goes by his first name alone, shared his thoughts on X.
“[It] has been a truly incredible and rewarding journey. [Being] actively involved in a 0 to 6B success story is something few can comprehend, and it was a life-changing rollercoaster,” he wrote in the post.
Seraphim joined Ethena during its $6 million seed round and played a pivotal role in forming over $1 billion in partnerships with leading DeFi platforms. The protocol’s flagship USDe stablecoin, which employs an innovative on-chain trading strategy to maintain its peg to the US dollar, is now listed on major centralized exchanges such as Binance, Coinbase, and Deribit. Moreover, its integration across Ethereum and Solana ecosystems has cemented its position as a leader in the DeFi space.
Ethena’s rise has been fueled by strong institutional backing. Its seed round included notable investors such as Bybit, Deribit, Gemini, Huobi, OKX, and BitMEX founder Arthur Hayes. This robust support laid the foundation for its rapid ascent, signaling that innovation and growth are still achievable in the ever-challenging cryptocurrency industry.
Ethena is now transitioning into a new phase, marked by the recent launch of USDtb, a stablecoin backed by reserves rather than relying solely on cryptonomic mechanisms. The move represents a deliberate attempt to diversify its offerings and appeal to a broader audience seeking more traditional stability in the volatile crypto landscape. “[The] firm is entering a different phase in its growth,” Seraphim noted.
Seraphim’s decision to step down reflects personal considerations. In his farewell statement, he expressed exhaustion from years of relentless work in DeFi, having collaborated with virtually every major liquidity provider, protocol, and key opinion leader (KOL) in the industry.
“Truth be told, I am also tired of DeFi,” he admitted. “I’ve done literally everything you could do in DeFi.”
However, Seraphim remains optimistic about Ethena’s future, pledging to support the team from the sidelines and expressing continued “bullish” sentiment for the protocol.
Looking ahead, Seraphim is eyeing new opportunities outside of traditional DeFi. While not completely averse to the sector, he revealed his interest in exploring emerging areas such as artificial intelligence (AI), memes, fashion, SocialFi, and entertainment.
DeFi’s Resurgence and Lingering Criticisms
Ethena’s growth aligns with a broader resurgence in the DeFi sector. Total value locked (TVL) in DeFi protocols has soared to over $120 billion, recovering significantly from a local low of under $40 billion in 2023. Despite this, the sector continues to face scrutiny for its lack of ingenuity and an overemphasis on financial gain.
Ethena’s innovative approach to stablecoins and strategic diversification with products like USDtb highlight the protocol’s commitment to breaking free from these critiques.
As Ethena navigates its next chapter without one of its key architects, the protocol’s future appears promising. Its ability to adapt, innovate, and diversify will be crucial in maintaining its position as a leader in the competitive DeFi landscape.
Seraphim’s departure marks the end of a transformative era for Ethena but also sets the stage for the protocol’s evolution into uncharted territories. Whether Ethena can sustain its momentum and expand its impact remains to be seen, but for now, it stands as a beacon of what’s possible in the dynamic world of cryptocurrency.
