Tokenomics of $VADER by Virtuals: A Deep Dive

$VADER, the native token of VaderAI by Virtuals, powers an innovative AI-driven platform that integrates artificial intelligence with blockchain technology to revolutionize trading and decentralized autonomous organizations (DAOs). Understanding the tokenomics of $VADER is crucial for investors and enthusiasts looking to gauge its long-term value, sustainability, and potential. This article explores the total and circulating supply of $VADER, its deflationary mechanisms, and the benefits of holding the token.

Total and Circulating Supply of $VADER

The total supply of $VADER tokens is capped at 1 billion tokens, with no future inflation as all tokens have been minted. This fixed supply ensures scarcity, a key factor in the token’s economic design. As of January 2025, the circulating supply is approximately 996.74 million tokens, meaning nearly all tokens are currently in circulation. This high circulating supply provides substantial liquidity, facilitating trading on various exchanges like Uniswap V2 (Base), MEXC, and Uniswap V3 (Base).

The fully diluted valuation (FDV), calculated as the current price multiplied by the total supply, is roughly $36.1 million (based on a price of $0.0361 as of May 2025). The close alignment between circulating supply and total supply indicates that $VADER has minimal locked or unreleased tokens, reducing the risk of future dilution.

Deflationary Mechanisms

$VADER incorporates deflationary mechanisms to reduce its circulating supply over time, potentially increasing scarcity and supporting long-term value appreciation. The primary deflationary strategy is token burning, where tokens are permanently removed from circulation by sending them to inaccessible addresses. Key burning activities include:

• Buyback and Burn Programs: Virtuals Protocol periodically conducts buybacks of $VADER tokens using ecosystem revenue. For instance, a notable buyback in January 2025 involved $1.6 million worth of $VADER (equivalent to 435,857 $VIRTUAL tokens) being burned to strengthen the ecosystem and drive token value.
• Fee-Based Burns: Certain platform activities, such as fund withdrawals, generate fees that are used to buy back and burn $VADER tokens. This mechanism ensures continuous deflationary pressure as platform usage grows.
• Staking and Locking: As of June 2025, 60% of the $VADER token supply is staked, up from 45% in April 2025. Staking reduces the liquid supply available for trading, creating additional scarcity. Additionally, 46.5% of $VADER was locked until February 18, 2025, further limiting circulation.

These mechanisms have already reduced the circulating supply, with 1.59% of the total supply burned as of June 2025, contributing to price stability and deflationary dynamics.

Benefits of Holding $VADER

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Conclusion

The tokenomics of $VADER by Virtuals are designed to foster scarcity, utility, and long-term value. With a 1 billion total supply, nearly all in circulation, and deflationary mechanisms like token burning and staking, $VADER is positioned as a deflationary asset with strong potential. Holders benefit from access to AI-driven investment opportunities, high-yield staking, and integration with the Virtuals ecosystem, making $VADER a compelling choice for those interested in AI and blockchain convergence. However, investors should remain mindful of market risks and the competitive landscape. As VaderAI continues to innovate, $VADER’s role in the ecosystem is likely to grow, potentially driving further value for holders.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.