There’s a new VIRTUALS on the block: Alpaca Network’s bid to tokenize AI Models with it’s new DEX MODELZ.

A project called Alpaca Network set out to fix that disconnect. Their answer is Modelz.io, the first decentralized exchange for AI models. It enables anyone to mint, fund, and trade MODEL tokens representing the models themselves and the revenue they will generate. If the agents are the storefronts, Modelz is the backend, now fractionalized into tokens you can actually own.

The Big Idea

Modelz allows anyone to create a token linked to any of the 1.85 million opensource AI models from Hugging Face (with thousands more being added daily). Press “Create New Model” and, in under a minute, you’ve created a MODEL token with its own bonding curve (just like Virtuals.io and Pump.fun).

Early backers use $PACA to buy into that curve. Once the model hits “Singularity” after raising 2 π million PACA (6.28M aka. TAU million PACA), a Uniswap liquidity pool is created automatically for anyone to trade the model on the world’s largest DEX.

From that moment on, you can then trade them on most of the DEX aggregators, and later get paid for every API call the model receives as the revenue is directly shared on-chain to MODEL holders. You can now co-own AI models with the click of a button.

How it works

Now that you understand how Modelz.io works, let's see how it works from a user point of view:

• Tokenize a model. The user chooses a model from Huggingface - let's say Deepseek R1 (which is now live with a 20X multiple already, yet still sub 500K ,marketcap - chart link here). It creates the model and it opens it up for funding. Alternatively you can just buy existing ones.
• Buy, trade and reach singularity. You swap some $PACA for the newly minted MODEL token, here in our example the Deepseek one. Your buy automatically feeds a bonding curve, similar to how virtuals.io works. When the pool crosses singularity at  2 π million PACA$, a liquidity pool is automatically created on Uniswap, unlocking trading on the largest DEX in the world.
• Earn from AI. From that moment on, every API call, whether it’s a chatbot or an AI SaaS, will split a fee straight to MODEL holders like you. No servers to run, no invoices to chase; it’s yield that arrives as predictably as block time.

A value loop, not just a DEX

Under the hood lies a three-layer engine:

• PACA$ is the economic bedrock of the ecosystem. Staking it earns you a guaranteed airdrop, a piece, one π, or 3.14 %, of every MODEL that reaches singularity.
• MODEL layer is the tokenized AI models, designed to enable anyone to tokenize open-source AI models, fund and trade them to get a chance to reach singularity and get them trading on Uniswap.
• AGENT is where things get fun. It’s an SDK that lets anyone wire those tokenized models into chatbots, trading algos, or on-chain games. Every inference pushes the fees back to the holders of the model.

Stake → Launch → Build → Earn → Repeat. The value flywheel makes sure everyone can create, fund and earn from AI models usage, with the $PACA utility token powering the entire ecosystem.

Why now and why it matters

The web3 space just spent the past year focussing on AI-agent projects. But agents are only as good as the models they call, and those models remain a black box controlled by private big tech companies.

Modelz.io’s timing lands precisely as builders realize the model is the scarce and valuable asset. By letting anyone co-own the intelligence, not just rent it, the project could truly enable to decentralize AI and enable anyone to co-own AI models and their revenue.

What’s the future of Modelz?

Modelz is rolling out in deliberate waves that progressively unlock utility for both model creators and builders:

1. Open Release (live now): Anyone can permissionlessly tokenize open‑source AI models or agents from Hugging Face in under a minute and kick‑start a bonding‑curve funding round.
2. Builder SDK (Q3 2025): A TypeScript/Python SDK plus plug‑ins for Unreal, Unity, and major web frameworks will make it trivial to drop “model‑as‑a‑service” calls into games, trading algos, or social bots.
3. Agent‑Layer Expansion (Q4 2025): We’ll deepen the agent layer through strategic tech partnerships—think vector‑DB providers, decentralized inference networks, and RAG tooling. This phase culminates in the public Modelz API, enabling any dApp or Web2 product to query a tokenised model and automatically stream fees on‑chain to MODEL holders.
4. Governance & Cross‑Chain Roll‑out (2026): PACA and MODEL stakers will vote on fee schedules, treasury deployments, and which L2s or alt‑VM chains Modelz should branch to next—turning Modelz into a self‑evolving factory for AI economies.The north star: turn every open‑source model into a community‑owned micro‑economy and give builders plug‑and‑play tools to tap that intelligence anywhere on the internet.

How to grab a front-row seat

• Try the Modelz platform: Modelz.io
• Read the docs here.
• Stake PACA to get some MODEL airdrops: Stake here.
• Talk to humans: Join our telegram