Virtuals Protocol is a decentralized platform that enables the creation, co-ownership, and monetization of AI agents, particularly within gaming and entertainment sectors. Launched in 2024 on Ethereum's Layer 2 network, Base, it allows users to develop AI agents without requiring technical expertise. These AI agents are multimodal, capable of interacting through text, speech, and 3D animation, and can perform tasks such as managing on-chain wallets and engaging with virtual environments. The platform utilizes a tokenization model where each AI agent is represented by an ERC-20 token paired with the native $VIRTUAL token in locked liquidity pools. This structure facilitates co-ownership and potential revenue generation through user interactions and other activities. Virtuals Protocol also incorporates a Modular Consensus Framework, enabling decentralized contributions and governance over AI agent development and enhancements.