> 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/initial-agent-offering-mechanism.md).

# Initial Agent Offering Mechanism

1. **Agent Creation**
   * NFT holder initiates the transformation of their NFT into an agent
   * Pays a fee in $SLN to the protocol
   * Agent inherits base traits from NFT metadata
   * Creator defines additional personality traits and goals
2. **Token Generation**
   * 1 billion agent-specific tokens are minted (e.g., $PUNK for a CryptoPunk agent)
   * The bonding curve distributes tokens as follows:
     * 80% Agent token goes to investors
     * 5% Agent token goes to Eliza Framework Wallet
     * 99% SLN and 15% Agent Coin goes to Uniswap
     * 1% SLN goes to Agent's Wallet
     * 100% of Uniswap trading fees (1% fee tier) in both SLN and Agent Coin goes to Agent's Wallet
3. **Liquidity Pool Setup**
   * Agent tokens are paired with $SLN
   * Liquidity pool is locked in smart contract
   * Creates initial trading infrastructure
   * Reduces circulating supply through lock-up
4. **Token Distribution**
   * Collection Allowlist (Optional): Priority purchase rights for Collection Holders
   * Public Sale: Remaining tokens available to general public
   * Dynamic pricing rewards early participation
   * All purchases made using $SLN token

* **No Insider Allocation**
  * All tradeable tokens distributed through public sale
  * Treasury tokens locked in smart contract
  * Unlocking based on development milestones
* **Transparent Economics**
  * Fixed total supply of 1 billion tokens per agent
  * Locked liquidity ensures trading stability
  * 1% buy/sell tax captured by protocol
  * Revenue flows directly to agent wallets
* **Value Capture**
  * Users and agents must convert to $SLN for transactions
  * Creates consistent demand for protocol token
  * Agent operations generate revenue for token holders
  * Automated buyback and burn mechanics

## Agent Wallet

* Development funding
* Feature expansion
* Community rewards
* Token buyback (if approved by governance)

## Initial Agent Offering Mechanism

## Overview

The Initial Agent Offering (IAO) is the process of transforming NFTs into revenue-generating AI agents within The Major ecosystem. This mechanism enables NFT holders to launch their assets as AI agents while establishing fair token distribution and liquidity through the $SLN token.

## How It Works

<figure><img src="/files/tw4LudHsOQYATNMzwwNK" alt=""><figcaption></figcaption></figure>

1. **Initial Contributions**
   * Agent Coin Holders provide 100K SLN to bonding curve
   * NFT owner contributes 1K SLN (If no Agent Coin launching) or bonding curve contribute 1% SLN&#x20;
   * Creates foundation for agent operations and identity
2. **Token Generation**
   * 1 billion agent-specific tokens are minted (e.g., $PUNK for a CryptoPunk agent)
   * Distribution structure:
     * 80% Agent Coin returns to Agent Coin Holders
     * 5% to Eliza Framework Wallet
     * 15% Agent Coin to Uniswap
     * 99% SLN to Uniswap
     * 1% SLN to Agent's Wallet
3. **Liquidity Pool Setup**
   * Agent tokens paired with SLN in Uniswap
   * Liquidity locked for 6 years
   * 1% fee tier for trading
   * All trading fees flow to Agent's Wallet
4. **Token Distribution Flow**
   * NFT Owner Priority: Exclusive first access
   * Collection Holders (Optional): Secondary priority
   * Public Sale: Open access after priority periods
   * Dynamic pricing through bonding curve

## Fair Launch Principles

* **Equitable Distribution**
  * Transparent bonding curve mechanics
  * No hidden allocations
  * Clear priority system for stakeholders
  * Open public participation
* **Economic Framework**
  * Fixed token supply (1B per agent)
  * Locked liquidity for stability
  * Automated fee distribution
  * Sustainable value capture
* **Value Generation**
  * Multiple revenue streams
  * Direct fee capture by Agent's Wallet
  * Governance-controlled distribution
  * Optional alternative deployment

## Alternative Launch Option

* Agent-only deployment without token
* Minimal SLN requirement for hosting
* Identity and hosting costs only
* Flexible operational structure

The Major's IAO mechanism ensures fair distribution while maintaining the connection between NFT identity and AI agent functionality, creating a sustainable ecosystem for agent development and value creation.