VC Perspective on Agentic AI

🎣 w3.catch-of-the-week cw48

Author

Vicktoria Klich
November 29, 2024

GMGM and welcome to the 🎣 w3.catch-of-the-week, the newsletter that takes away your FOMO, picks you up and lets you start the weekend calmly.

As long as you take the three minutes each week to get an overview of what's going on in Web 3, you can only smile at the FOMO of entire nations (yes, you heard that right!).

Brazil has now also proposed a bill (like the US) discussing Bitcoin as a national reserve. And there are more to follow.

It is therefore all the more important not to become overconfident and too euphoric – of course we have earned this somewhere, but be careful: just because something is hot again now, it doesn't mean it will stay that way.

🤖 State of AI Agents
🫂 Community Gathering Berlin
🔥 Base Deep Dive
🌪️ Big Win for the Crypto Industry
🤝 New Partnerships
💅 Female Company

What’s going on with AI Agents?

The rise of Agentic AI - autonomous systems capable of independently executing complex tasks - may be one of the most transformative shifts of our time. These intelligent systems will fundamentally reshape how we work, innovate, and organize.

With OpenAI expected to launch its AI agents for consumers and business in the coming month, this vision could arrive faster than we think, propelling Agentic AI into the mainstream.

We at w3.wave think Crypto can provide an ideal foundation for Agentic AI. Its decentralized, transparent infrastructure enables these agents to operate securely and autonomously. Smart contracts offer programmable, trustless environments for interactions, while crypto payment rails allow agents to transact seamlessly in real-time.

🤓 Think about this: Since these agents do not have a social security number, they cannot open a bank account or apply for a credit card. They will choose a financial system that allows them to send payments at any time, without being restricted by credit card providers, regulations or other human systems.

For example, ai16z (yes, “ai”, not Marc Andreessen's venture fund) is a fascinating example of crypto-agentic AI framework.

Currently the 2nd most popular open-source Repo on GitHub, it combines AI decision-making with decentralized governance, creating a collective swarm intelligence system where individual agents contribute to decisions and improve the system over time.

It could well be the first open source sandbox to advance both practical applications and the theoretical foundations of AGI.

A big focus of us at w3.wave currently is getting an overview of this fast moving space and position ourselves early in the market.

XMAS Community Get-Together

In less than a week (December 5th), we are organizing a festive community gathering for our w3.hub community.

Starting at 4pm, we’ll take some time to toast together, decorate the Christmas tree, enjoy mulled wine, and share treats.

No worries, we will keep the festive vibe for everyone outside of w3.hub for the event that follows:

Vitalik The Movie - Watch Party 🍿

We warmly invite you to join the based builders meetup to exchange insights and make new contacts. And of course watch the legendary movie about the man himself - Vitalik Buterin.

Based Insights

Let's delve deeper into the Base ecosystem, as the facts and figures suggest that Base (alongside Solana) may be the most relevant ecosystem in 2025.

The elephant in the room: Coinbase

  • Base is a layer-2 blockchain developed by Coinbase that aims to bring a billion people onchain.

  • It benefits from Coinbase's reputation and marketing power

  • The blockchain is seeing increased activity, capital inflows and growing interest from developers.

Ethereum and Layer 2s

  • Ethereum remains a major player despite criticism for high costs and slow transactions.

  • Layer 2 solutions like Base are addressing these issues and benefits from network security.

  • A big part of that is keeping the fees as low as possible.

User experience

  • If you have the Coinbase app and want to trade a token that is not yet listed on Coinbase itself, you will be prompted to download the Coinbase Wallet.

  • It seems like you are doing everything in your familiar environment and just creating an extra wallet, but the Coinbase Wallet is a wallet for trading on DEX (decentralized trading platforms).

    • It is set by default on the Base network. This is how users are onboarded without them realizing it directly.

  • Another positive aspect is that Base is also integrated into the Phantom Wallet, which is currently the most popular wallet of all and is also trending in the app store.

  • And it doesn't stop with Phantom; they continue to break into other ecosystems:

Building in Public

  • The Base team, led by figures like Brian Armstrong (Coinbase CEO) and Jesse Pollak, is highly respected.

  • Their efforts focus on innovation, community engagement, and adoption.

Speculation of an Airdrop

  • While there has been no official confirmation of a base token or an airdrop, some speculate that it may happen in the future. Coinbase has denied it so far, but so have other players who now have a token…

Two exciting use cases:

Here you can play around yourself and familiarize yourself with Base (if you haven't already).

  1. Virtuals Protocol:

    • A platform for launching on-chain AI agents.

    • Gaining traction as AI becomes a major trend in crypto.

  2. Farcaster:

    • Farcaster, a decentralized social network, heavily uses Base for its transactions.

    • Tools like Clanker (for token creation) and Anoncast (for anonymous posting) are popular innovations.

Big Win for the Crypto Industry

Tornado Cash, a popular crypto privacy tool, was sanctioned by the U.S. Treasury's Office of Foreign Assets Control (OFAC) in 2022. The sanctions targeted its developers and smart contracts, claiming they were being used for illegal activities, including money laundering by North Korean hackers. This led to lawsuits, including one from Coinbase, arguing the sanctions were overreaching and unconstitutional.

The Latest News

A federal appeals court has now ruled that the Treasury overstepped its authority when it sanctioned Tornado Cash's immutable smart contracts.

The court stated that these smart contracts:

The court also clarified that these smart contracts are not "services" or "contracts" under OFAC’s rules. They are simply lines of code functioning as tools.

  • Are not "property" because they cannot be owned or controlled by anyone.

  • Operate independently on the blockchain without human involvement.

  • Cannot block specific users (e.g., sanctioned entities), making the sanctions ineffective.

Why is this relevant for the industry?

  1. Protecting Decentralization:

    • The ruling highlights the unique nature of decentralized technologies like blockchain. It sets a legal precedent that open-source, immutable code cannot be easily regulated or sanctioned as traditional property.

  2. Privacy and Innovation:

    • It’s a win for privacy advocates and developers who fear government overreach could limit innovation in decentralized finance (DeFi) and blockchain technology.

  3. Limits on Government Power:

    • The decision shows that regulatory agencies like OFAC must operate within strict legal boundaries when dealing with decentralized systems.

  4. Ripple Effects Across Crypto:

    • This case could influence how other decentralized tools and protocols are treated under U.S. law, potentially protecting similar projects from excessive regulation.

We announced two new partners

We are getting closer and closer to the big w3.vision Digital Assets Season and are excited to introduce you to our two newest partners:

The NEAR layer-1 blockchain has been front and center on two of the most impactful trends in digital assets: a) Chain abstraction and b) Crypto x AI.

While chain abstraction enables any NEAR Protocol account holder to sign transactions across any blockchain, the Crypto x AI initiative positions NEAR as the foundational layer of a user-owned internet in the AI era.

According to a recent Blockworks survey, 69.2% of institutional investors stake their ETH to generate additional reward - many relying on Kiln, our trusted partner for the upcoming Digital Assets Season.

The Female Company & Blockchain

The Female Company, established in 2018 in Berlin, focuses on providing sustainable feminine care products. They offer organic tampons and period panties, made from certified organic cotton, emphasizing transparency and eco-friendliness.

The company is conducting a crowdfunding campaign to raise €1.5 million. Investors can contribute between €250 and €25,000, with a fixed annual interest rate of 8.1% over five years.

👉🏽 The Crowd-Investing campaign is made possible by the use of Web3 technologies. The technical solution from our portfolio company Cashlink is used for this, which is then processed through the Wiwin platform.

The Female Company aims to address issues related to women's health and sustainability. With plans for international expansion, they seek to broaden their impact on the femcare market.

Mat Dryhurst during Onchain Art Berlin

Episode 3 of my vlog is packed with highlights, from speaking at Fraunhofer FIT’s TechFusion in Cologne to hosting our stage at DMEXCO and organizing an unforgettable industry dinner with our partners. We even celebrated w3.wiesn, inviting 100 investors and friends for a casual Oktoberfest night out.

My team and I have built a Web3 ecosystem in Berlin to help integrate blockchain into everyday life and solve real-world problems.

On the Onchain Culture Podcast, we explore how Web3 is transforming industries and who’s driving the change.

Don't miss out on any news, updates, & vibes anymore. Discord is so yesterday. Let's meet on Telegram.