In our view, VC investing in AI applications & agents is a boomer concept in the age of abundance. It only works in a protectionist closed-source regime. For Decentralized AI (DeAI), a new incentive alignment paradigm is needed. Luckily, we are pioneering it.

While building AI models is still capital intensive, mostly due to GPU access and acquisition costs (although challenged by likes of DeepSeek), innovating at the application and agentic layer isn’t. In our very opinionated view, most of the value accrual is already moving to the application layer and the current VC model of treating startups like “Foie gras” doesn’t work anymore. We also hold the view that L1s for AI are a scam and believe in the appchain thesis.

AI builders should not be forced to give up a share in their AI models, agents, or apps in exchange for perpetual equity. Rather, as intelligence becomes a commodity, revenue share based models that begin and end within a given time frame will be preferred option for AI innovators to access capital from community in the form of emissions.

Hence, we’ve designed a new tokenomics model to enable direct rev-share based collaboration between AI Innovators and LPs enabled through yield bearing entities we call “Pods”.

We are in the final stretch of this effort and will publish the whitepaper around TOKEN 2049 Dubai 2025.

Cheers.