DeFi project Frax Finance has embarked on creating a technological stack for AI agents on the blockchain in collaboration with IQ, reports The Block.
AIVM is being developed as a parallelized blockchain based on the L2 solution Fraxtal. The network employs a new consensus algorithm, Proof-of-Inference, which utilizes artificial intelligence and machine learning models to validate transactions.
Frax’s solution will enable AI agents to become fully autonomous without a single point of failure. Ultimately, the interaction between artificial intelligence and the blockchain will become “more organic,” the developers emphasized.
“Thanks to our joint solution, launching tokenized AI agents with IQ ATP on AIVM from Fraxtal will be unlike any other platform. Sovereign AI agents on the blockchain, owned by token holders, represent a zero to one moment for cryptocurrency and AI,” commented IQ’s Chief Technology Officer, Cesar Rodriguez.
Frax Finance is the issuer of decentralized stablecoins Frax (FRAX) and Frax Ether (FRAXETH). The project is governed through Frax Shares (FXS) tokens.
The upcoming tech stack is part of the new Frax Universal Interface (FUI) from the Frax Vision 2025 roadmap, which outlines strategies to become the “decentralized central bank of cryptocurrencies.” Other updates include the rebranding of the FRAX stablecoin and network modernization through a hard fork.
Back in February, Frax Finance began developing a reward mechanism for veFXS stakers.