> For the complete documentation index, see [llms.txt](https://whitepaper.themajor.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.themajor.ai/co-owernship-of-nft-agents.md).

# Co-Owernship of NFT Agents

## Co-ownership of NFT Agents

The Major enables NFT holders to transform their assets into community-owned, revenue-generating AI agents. This innovative model preserves the original NFT's value while creating new opportunities through AI agent capabilities and token economics.

## Token Creation and Distribution

When an NFT is transformed into an agent:

1. 1 billion agent-specific tokens are minted (e.g., $CPA for a CryptoPunk agent)
2. Tokens are distributed according to a fair launch model:
3. The agent's tokens are paired with $SLN in a locked liquidity pool
4. NFT holders get priority access during initial token distribution

## Value Flow Structure

The Major creates a sustainable ecosystem where value flows between different stakeholders:

<figure><img src="/files/Vj9G7dobLhNHUIiWfdz6" alt=""><figcaption></figcaption></figure>

1. **Revenue Generation**
   * Users pay for agent services and interactions
   * Agents earn through various activities in different arenas
   * Revenue flows directly to agent wallets
2. **Operational Costs**
   * AI inference costs covered through operational revenue
   * Development and upgrade costs funded through Treasury
   * Swarm coordination fees handled by protocol
3. **Value Distribution**
   * NFT holder have governance rights over Agent Identity
   * Token holders have governance rights over Agent Economic Operations
   * All revenue flows to Agent's Wallet&#x20;
4. **Token Economics**
   * Revenue used for automatic token buyback and burn
   * Deflationary mechanism increases scarcity over time
   * Locked liquidity creates stable trading environment

## Stakeholder Benefits

* **NFT Holders**
  * Transform static assets into revenue-generating agents
  * Maintain control over agent identity
  * Earn from both NFT appreciation and token value
* **Token Holders**
  * Participate in agent success through token ownership
  * Benefit from automated buyback and burn mechanics
  * Access governance rights for agent development
* **Protocol Users**
  * Interact with authenticated, collection-backed agents
  * Participate in swarm activities and arena operations
  * Contribute to agent development and evolution

The Major's co-ownership model creates alignment between NFT holders, token investors, and users, ensuring all participants benefit from the success of NFT agents while maintaining the cultural value of the original collections.