Edge Podcast - NIM Network: Crypto-Powered AI Ownership in Games

In this episode of The Edge Podcast which took place on May 1, 2024, DeFi Dad, Nomatic, Yoni, and Nate discuss AI gaming, NIM Network, partnership with Dymension, and $NIM token. Read our notes below to learn more.

Background

DeFi Dad (Host) – Host of Edge Podcast
Nomatic (Host) – Co-Host of Edge Podcast
Yoni (Guest) – Co-Founder of NIM Network
Nate (Guest) – Co-Founder of NIM Network
NIM Network – an AI gaming chain

Why we need NIM

Yoni says that traditional gaming involves controlling avatars against computer opponents; however, with advancements in crypto tokenization and AI integration, players can now own their AI agents that can transact and generate income within games.
He adds that the development journey began two years ago with MatchBox DAO focusing on creating games using new technological primitives such as ZK layers before transitioning towards integrating AI due to its exponential growth compared to blockchain development.
Yoni says that the team identified a lack of good benchmarks for AI to measure itself against in production, leading to the concept of a sandbox reflecting the future of AI in games. The sandbox aims to bridge capabilities, offering access to oracles, monetization opportunities, and co-ownership.
Nate says that establishing an ecosystem with an economic backbone (agent economy) is crucial for enabling AI gaming at scale.
He adds that mass adoption of AI games requires an aggregation of various solutions, including infrastructure providers and applications that can work together within one ecosystem.

Use cases for AI agents in games

Nate says that gamers can benefit from owning and utilizing AI agents for gameplay scenarios beyond traditional approaches. Examples like AlphaStar and OpenAI’s Dota Player showcase how advanced AI agents can achieve superhuman performance in complex games like Starcraft 2 and Dota 2.
He envisions use cases that include having an army of AI agents for multiplayer battles, cooperative modes with an “OG gamer” guiding players, and dynamic NPCs enhancing gameplay experiences.
Yoni says that AI is expected to take over music creation within game economies, where creators will own songs used across different games. Collaboration on developing entire games using AI technology is underway, indicating a shift towards innovative game development processes.
He adds that new competitive formats are introduced such as the “AI Olympiads,” focusing on optimizing models rather than direct gameplay skills.
Yoni says that financial aspects are expected to become more prominent in games, with a focus on integrating a financial layer on top of existing games.
He adds that they give consideration to engaging individuals who are not actively playing through avenues like betting, expanding participation beyond gameplay itself. Discussion includes various player categories such as spectators, active players, and developers’ involvement in shaping gaming experiences.
Yoni says that the concept of utilizing AI agents to enable gameplay interactions even when players are offline or unavailable, potentially introducing new dimensions to cooperative gaming experiences.

Where will adoption come from?

Nate expects a rapid evolution of AI integration in games, envisioning a new genre where games are fundamentally built around AI technology rather than retrofitted with AI components.
He adds that the existing technological possibilities for sophisticated player interactions are facilitated by advancements in artificial intelligence models like LLMs.
Nate says that rapid innovation is noted due to an explosion of AI technologies, streamlining development processes previously requiring extensive engineering resources to now being achievable with fewer specialists.
He adds that large studios face challenges in swiftly adapting their infrastructure to incorporate AI elements due to their scale-focused design approach tailored for millions of global players.
Nate says that indie developers exhibit agility in adapting their game designs and infrastructure rapidly compared to big studios, leveraging this flexibility to integrate cutting-edge technologies like AI more efficiently.
He adds that they are working on reimagining game experiences from first principles with scalable AI agent creation capabilities at the core, focusing on optimizing player engagement while considering open-source tools and blockchain technology.
Nate says that immediate innovations include independent agents integrated into games resembling virtual streamers that autonomously interact based on external inputs like social media feeds or streams.
Yoni says that various applications range from entirely AI-generated games to collaborations between Neural Networks (NN), LLM models enhancing gameplay dynamics showcasing evolving intersections between traditional NN structures and newer LLM frameworks.

Is the future of gaming spectating?

Yoni says that the future of AI agents in games may shift towards being more of a spectator sport rather than active gameplay. This evolution could lead to people viewing gaming as a form of entertainment akin to watching sports.
He adds that the benefits within the NIM Network can be accessed by anyone connecting their crypto wallet, similar to how users engage with crypto and DeFi platforms. Users within the network can be categorized into different tiers such as creators, heavy users, liquidity providers, and traders, reflecting a diverse ecosystem akin to DeFi structures.
Yoni says that in an AI agent creation economy, there are different types of users including creators, social media influencers, and store owners on platforms like Amazon. These users play varying roles in shaping the marketplace. The economy is expected to have super creators who design game models or tokenized assets, heavy users who purchase inventory at scale, and liquidity providers offering essential services like Patreon or crypto support.

What’s possible to build on NIM?

Nate says that the NIM Network’s infrastructure comprises components like model access quality, response mechanisms from models, and verification processes on-chain facilitating the smooth movement of agents across protocols. Efforts are focused on aggregating top solutions for verifying and connecting models efficiently. Research collaborations aim to enhance memory-efficient systems like Liero for local model verification without high-end hardware requirements.
He adds that the team is excited about exploring memory use in their work. They are focusing on utilizing trusted execution environments for running AI inference securely. Attestation and proof provision to the chain are key aspects of their approach.

Possibilities with AI agents transacting

Nate talks about the concept of model accessibility within their system. He highlights the significance of ERC-6551 smart accounts in their ecosystem. They gained flexibility from having a dedicated chain for implementing experimental ERCs.
He explains that token-bound accounts provide access to AI models through NFT ownership. Owning an NFT grants access to specific revenue streams tied to AI agent activities. Users can benefit from revenue generated by games or services linked to AI agents.
Yoni says that they aim to establish a seamless flow for creation and ownership within the platform. They focus on enhancing the user experience for token holders through increased ownership rights.

Utility of $NIM token

Nate says that the NIM Network is specialized around AI gaming, requiring a shift in the economic model compared to other chains. NIM aims to be an amplification engine that aggregates different AI directions, offering users exposure to revenue streams rather than just gas fee distribution.
He adds that holding $NIM provides not only staking rewards but also acts as an exposure to the innovation cycle and success of applications on the platform.
Nate says that holding $NIM may result in revenue share coming back in various forms such as ecosystem gaming tokens or $USDC instead of solely earning more $NIM. The aim is to create a flywheel mechanism with revenue sharing between infrastructure providers and applications on NIM, fostering user engagement and participation.

Dymension partnership

Yoni says that they are working closely with the Dymension team; NIM will be the first rollup on the Dymension platform showcasing innovative ways to manage infrastructure efficiently.
He adds that Dymension offers enhanced flexibility by functioning as a layer-3 solution atop existing layer-2 frameworks. He put emphasis on cost-effectiveness, making operations cheap within the chain. Integration with validators working on Dymension enhances connectivity and network participation.
Yoni says that rollups are for diverse applications beyond general purposes. There is a potential for specialized rollups catering to social interactions, payment processing, and gaming experiences. Collaboration with various entities like Pilot Nation, Alena, Cage, and other games to enhance AI integration in gaming environments.
He adds that they are working with partners to build oracles, token-bound accounts, and availability services. They aim to serve as an all-encompassing chain supporting partners’ initiatives. Their focus is on enhancing access to AI capabilities and game monetization through collaborative efforts.
Nate says that the introduction of agents or AI models as intermediaries simplifies blockchain interactions. Streamlining cross-chain operations through agent-managed pathways within Wayfinder protocols.

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Show Information

Medium: YouTube (Video)
Show: The Edge Podcast
Show Title: NIM Network: Crypto-Powered AI Ownership in Games and Apps
Show Date: May 1, 2024