Brutal week in the markets—ETH nuked 25% in a day, crashing below the $3K support.

AI tokens got wrecked, too. FARTCOIN and AI16Z plunged 63% and 57%, so hard that even FARTCOIN maxi Taiki rage-quit his position.

Meanwhile, FXN took the worst hit, tanking 65% despite its recent mainnet launch.

But it wasn’t all doom and gloom. SNAI (Swarmnode) and NEUR managed to defy the bloodbath. SNAI ripped 48%—likely fueled by its acceptance into the NVIDIA Inception Program.

Overall, AI’s mindshare has collapsed to 32%, down from 70% last month.

Looks like traders are shifting focus to DeFi, with the Berachain launch. Will AI agents carve out a role in the Berachain ecosystem?

Eliza's GitHub Showdown

Eliza just hit a major milestone, catching up to Solana Foundation's GitHub star count in a photo finish. That’s right, Eliza is giving Solana a run for its money, and the numbers don’t lie. Here’s the breakdown:

@elizaOS:

• Stars: 14k

• Forks: 4.2k

• Contributors: 526

@solanalabs:

• Stars: 13.8k

• Forks: 4.6k

• Contributors: 489

But Eliza is not just about GitHub stars. Their recent v0.1.9 release is packed with upgrades: Instagram and XMTP clients, enhanced autonomous agents, and expanded support for NVIDIA, Livepeer, and Amazon Bedrock. Blockchain integrations? They’ve got Birdeye, Solana improvements, OpenZeppelin governance, cross-chain swaps, and new chains like BNB, Cronos, and Mina.

Oh, and over 100 new developers joined the party..

Meanwhile, the DAO is attempting to revamp its tokenomics. This is mission critical, considering how the price of AI16Z has been tanking lately. Instead of letting its $15M-$30M treasury sit idle, it’s deploying those assets into liquidity pools. By pairing tribute tokens with the AI16Z token in one-sided LPs, it aims to create buy pressure and improve liquidity.

And more partnerships? Yes

• Alphanomics: Future Eliza agents will integrate with Alphanomics’ On-Chain Super Terminal, giving users real-time data analysis.

• TON: A $20K prize pool for developers building the TON Plugin for Eliza.

• Ankr: Connect AI agents to Ankr’s global node network for fast, reliable data streams.

• Rena AI: improving Eliza’s trading with advanced price prediction and automated execution.

One more thing: the DAO is launching a Crypto Shark Tank with AI judges. Users pitch their ideas, an “AI Writers Room” generates a full episode script in seconds, and projects get exposure, feedback, and funding opportunities. It’s currently built on PlayCanvas, with potential for Unity or Unreal integration in the future.

🌴 The Rise of Dynamic TAO (dTAO)

Bittensor is about to shake things up with the launch of dynamic TAO. With Coinbase adding TAO to their roadmap and the dTAO whitepaper released, the stage is set for something big.

The countdown has begun: a senate vote kicks off the process, and if all goes well by February 9th, dynamic TAO (dTAO) will make its grand debut between February 10th and 14th. It’s going to be a big week.

But what makes dTAO a game-changer? Let’s break it down.

Dynamic TAO (dTAO) is a massive upgrade to the Bittensor network, set to transform how token emissions are distributed.

Right now, a small group of validators manually assess subnets, deciding their value and rewards. But as the network scales, this system is cracking—validators are overloaded, engagement drops, and manipulation risks rise. So high-value subnets might get overlooked while less deserving ones reap the rewards.

dTAO introduces subnet tokens (think Alpha1, Alpha2, Alpha3) and subnet pools powered by Constant Product Automated Market Makers (AMMs). These pools let users stake TAO for subnet tokens and vice versa, with prices determined by market activity.

In other words, the market decides what each subnet is worth.

The dTAO system has powerful features: AMMs for subnet pools, fresh liquidity injections, TAO staking/unstaking, dynamic emission distribution, and halving schedules.

Each subnet gets its own liquidity pool, allowing true price discovery between subnet tokens.

With dTAO, subnet valuations are no longer dictated by a select few but by the collective intelligence of the market. This upgrade cements Bittensor’s vision: a decentralized network where growth is driven by the community, for the community.

Project Updates

• Autonolas has launched Olas Pearl, a desktop "agent app store" that simplifies the deployment and management of autonomous AI agents across DeFi, influencer marketing, and prediction markets. Users can earn OLAS by running agents and staking tokens. Olas recently raised a $13.8M funding round and launched a $1M accelerator program.

• Mira Network announces Magnum Opus, a $10M builder grant program to accelerate AI innovation. The program offers retroactive grants, mentorship, technical support, and strategic distribution to empower builders.

• Nillion partners with Io.net to enable private AI inference at scale, leveraging a global GPU network while keeping data and model parameters secure.

• 0G Foundation unveils an $88.88M Ecosystem Growth Program to accelerate AI as a public good on the largest L1 for AI.

• Worldcoin introduces Anonymized Multi-Party Computation (AMPC), an open-source, quantum-secure privacy solution designed for the AI era, ensuring robust protection for users and AI agents.

• The winners of the Coinbase CDP AI Hackathon were announced, featuring DeFi agents, social media agents, educational agents, and a proof-of-authenticity initiative built on Bittensor.

• Gaia Network introduces the Gaia XP Program, rewarding community contributions with Gaia points, which can be redeemed for Gaia credits to interact with Gaia AI Agents, fostering a thriving decentralized AI ecosystem.

• Sapiens, a decentralised data foundry for AI, releases its litepaper

AI Agents

• Acolyt launches the Signal framework, an open-source system to help AI agents achieve clear goals, like increasing mindshare on X

• Warden Protocol introduces the Warden Agent Kit, empowering developers to create on-chain AI agents that trigger smart contracts using AI outputs, combining off-chain processing with on-chain execution for DeFi automation.

• Soleng, a Web3 solutions engineering and DevRel agent, is now powered by Hyperbolic’s decentralized compute framework, automating and enhancing developer relations.

• Aiccelerate DAO partners with Virtuals as a founding Venture Partner, offering $50K grants to selected projects in exchange for token shares, advancing a multi-ecosystem AI future.

• SwarmNode joins the NVIDIA Inception Program, gaining access to new technical tools, resources, and investor networks.

Web2 AI

• OpenAI continues to push boundaries with the launch of o3-mini, now integrated into ChatGPT and the API, offering enhanced capabilities for developers and users alike. Meanwhile, their Deep Research feature enables ChatGPT to analyze and compile comprehensive reports from hundreds of sources in minutes—a task that would take humans hours.

• Google DeepMind has made Gemini 2.0 Flash generally available, positioning it as the go-to model for high-frequency, high-volume tasks at scale. Its efficiency makes it a powerhouse for developers tackling demanding workloads.

• Anthropic introduces Constitutional Classifiers, a breakthrough in AI safety that reduces jailbreaks by 95% while maintaining minimal impact on refusals. Leveraging synthetic data and principle-based rules, it adapts dynamically to emerging threats.

• ByteDance, the company behind TikTok, unveils OmniHuman-1, a cutting-edge AI model capable of generating hyper-realistic videos from just a single image and audio track, opening new possibilities in content creation. It’s mindblowing.

Earlier this week, we dropped an essay on Freysa, one of the few AI agent projects that really caught our eye in a noisy space. She’s a new breed of AI agents, known as Sovereign AIs. Read it here 👇

🔥 On X..

Bittensor is paying $1 billion / year in liquid TAO rewards for open-source AI

Shaw highlights the pain of a “fair launch” token

You can run DeepSeek with 671B parameters, 128 context length, and 30 tokens for free via Targon.

An AI Agent Super App?

Thoughts after the Coinbase Agentathon

The AI x GameFi Market Map

Bagel’s ZKLoRA gives open-source AI the business model to compete with the closed-source giants.

Updates on the Parallel ecosystem and Wayfinder