Eliza Labs founder Shaw Walters announced the end of support for the Eliza token, formerly known as ai16z, and the shutdown of the project’s fund. At the same time, the company will continue developing the open-source ElizaOS platform for creating AI agents, but without its own cryptocurrency.
Walters linked the decision to abandon the native token to conflicts surrounding its support and the expectations of some members of the community. According to him, the team faced constant pressure, accusations of fraud, and demands to take action to support the token’s price.
Walters said the team no longer plans to launch any tokens connected to the development of ElizaOS in order to separate platform development from the speculative market. The priority will remain the creation of local, private AI agents with support for crypto technologies, and if a stronger open-source project emerges, the team is ready to work together with its developers.
Legal Dispute With Token Holders
Walters said that Eliza Labs has settled a dispute with the law firm Burwick, which represented a group of ai16z token holders. According to him, the team decided not to continue the legal battle and transferred the remaining treasury funds because it did not have the resources for a lengthy legal defense.
The company founder also stated that he did not sell the ai16z tokens he owned and only received a salary at the same level as other developers on the team. According to him, revenue from projects connected to Eliza was reinvested into the platform’s development.