Virtuals Protocol launches a 60-day framework, reshaping the tokenized arena

Virtuals Protocol recently launched a brand-new framework system designed to optimize the tokenization process of early-stage projects and effectively reduce related risks. According to Foresight News, this plan will undergo a public development and testing cycle, with all token issuances initially conducted on the Base network and operating in a private funding pool. When the total trading volume of the VIRTUAL token reaches 42,000 tokens, liquidity funds will automatically migrate to Uniswap V2. The current price of the VIRTUAL token is $0.56, with a 24-hour trading volume of $1.14 million, and a circulating market cap of approximately $366.99 million. The core innovation of this framework lies in granting founders full autonomy, allowing them to decide the project’s direction after 60 days.

From Private Pool to Public: A Gradual Liquidity Journey

This framework adopts a phased liquidity strategy. In the initial stage, all trading occurs within a private funding pool, protecting early participants’ interests while giving the project team ample testing time. Once trading volume reaches the specified threshold (42,000 VIRTUAL tokens), liquidity automatically shifts to decentralized exchanges like Uniswap V2, enabling a natural transition from a controlled environment to an open market. This design reflects meticulous risk management thinking.

Tax Incentives: Profit Sharing Between Founders and the Protocol

The system incorporates a 1% transaction tax, cleverly allocated between two parties. Seventy percent of this fee goes to the project founders, while the remaining 30% belongs to the protocol. This distribution incentivizes founders to actively promote project development while ensuring the protocol’s sustainable operation. Notably, founders can also set up a growth allocation pool, containing no more than 5% of team tokens. If the project ultimately fails to launch successfully, this portion of tokens will be fully refunded to the community.

Dual Pathways: Participate or Exit?

After the 60-day countdown, founders will face a critical crossroads. If they choose to continue participating, the project tokens will enter a long-term development phase, with funds unlocked gradually, providing ongoing growth opportunities. If they opt to exit, the entire project will be shut down, and all funds accumulated through ACF, transaction taxes, and liquidity pools will be returned to legitimate token holders. This dual-option mode protects investors’ interests while giving founders an honest opportunity to assess the project’s feasibility.

This framework represents Virtuals Protocol’s systematic approach to project incubation, opening a more stable development path for early tokenization projects through structured risk management and transparent incentive mechanisms.