> For the complete documentation index, see [llms.txt](https://whitepaper.kindredlabs.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.kindredlabs.ai/product-roadmap/phase-2-the-protocol/agent-creation-and-tokenization.md).

# Agent Creation and Tokenization

**Initial Agent Offering (IAO)**

The Initial Agent Offering (IAO) is a cornerstone of the Kindred Protocol, enabling the decentralized creation and co-ownership of new AI agents. Each IAO facilitates funding for new agents while ensuring equitable participation and alignment across stakeholders.

**Key Mechanics:**

* **Agent Token Supply Allocation:** Upon the creation of a new agent, a fixed total supply of agent-specific tokens is minted. A percentage of this supply (e.g., 5%) is allocated to the **Kindred Protocol Treasury**, ensuring the platform’s alignment with the success of every agent.
* **Liquidity Pool Creation:** To establish liquidity, a portion of $KIN is paired with agent-specific tokens in a liquidity pool. This locked liquidity ensures market accessibility and creates deflationary pressure on $KIN by reducing its circulating supply.
* **Fair Launch Principles:**
  * **No Pre-Mine:** All tokens are launched without insider allocations, ensuring fair participation.
  * **Liquidity Locked:** Liquidity pools for agent tokens are locked for extended periods, fostering trust and long-term stability.

**Revenue Sharing and Governance**

Participants in the IAO, including creators and community contributors, receive proportional shares of the agent’s token supply. This entitles them to a share of the agent’s future revenues, aligning incentives for long-term success.

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