Why Binance Labs Sees Huge Potential in MyShell’s Decentralised AI Platform

Binance Labs’ Strategic Investment

Binance Labs, the venture capital and incubation arm of Binance, has made a significant stride by investing in MyShell, a decentralised AI ecosystem.

This funding is part of Binance Labs’ broader strategy of identifying and nurturing transformative early-stage projects.

Historically, Binance Labs has demonstrated a keen eye for innovation, having previously invested in a range of influential projects across various sectors of the Web3 space.

Noteworthy investments include support for leading projects like Elrond and Fetch.AI, which have made substantial impacts in their respective fields.

The investment in MyShell marks a continuation of Binance Labs' commitment to supporting groundbreaking technologies with the potential to redefine their industries.

Yi He, Co-Founder of Binance and Head of Binance Labs, expressed enthusiasm for MyShell’s potential, stating:

“Binance Labs recognises the power of AI technology and has always wanted to support and back AI-powered consumer applications. We look forward to seeing MyShell develop a solid creator economy based on AI and crypto.”

What is MyShell

MyShell operates as a decentralised AI platform, empowering creators to build AI agents or bots that users can integrate into various applications.

Unlike traditional AI platforms, MyShell is community-driven, allowing creators to fully own their creations while fostering an open-source environment.

This decentralisation ensures that no single entity controls the platform, promoting a fair and transparent ecosystem where creativity can thrive.

With a rapidly growing community of over 50,000 creators and reportedly more than one million registered users, MyShell is quickly becoming a prominent player in the AI space.

Users are actively developing AI tools like OpenVoice, a voice cloning program; MeloTTS, a multilingual text-to-speech (TTS) library; and Alice, an AI agent capable of thematic research, coding, and literature reviews.

Inside the Shell

The team behind MyShell includes experienced AI entrepreneurs and researchers from prestigious institutions such as MIT, Princeton, and Oxford.

Their expertise in developing cutting-edge algorithms and proprietary AI models positions MyShell at the forefront of AI innovation.

So, who are the founders?

MyShell is co-founded by three Chinese – Ethan Sun, Zengyi Qin and Rick.

As a co-founder of MyShell, Ethan Sun focuses on transforming traditional AI production.

Ethan’s Socials: X, Linkedin

He graduated from the University of Oxford with a BA in Mathematics and Computer Science.

Before MyShell, he co-founded ATP Club, an AI-driven fitness game platform, and held significant roles at Aibee Inc. and Ke Holdings Inc., contributing to advancements in VR and AI technologies.

On the other hand, Zengyi Qin, specialises in voice algorithm research.

He holds a PhD from MIT, where he focuses on multi-modal generative AI, particularly in speech and audio generation.

Zengyi’s Socials: X, Blog

With a strong background in robotics, computer vision, and reinforcement learning, Qin has published over eight top-tier conference papers and contributed to notable projects like OpenVoice and JetMoE-8B.

His work positions him as a leading expert in developing advanced AI technologies.

Last but not least, Rick, who is a seasoned expert in AI product development and market strategies.

He co-founded a successful startup, developed a widely adopted AR SDK, and has held leadership roles in a prominent AI unicorn company.

Additionally, Rick is also a co-founder of ATP.Club.

His identity remains anonymous, reflected in his X (formerly Twitter) profile where his display image is an artwork by the pseudonymous street artist Banksy.

According to his X account, Rick is currently based in Tokyo, Japan.

Incentivizing AI Creation: The Role of Points and Tokens

One of MyShell’s key differentiators is its reward system. Currently, creators earn points based on the popularity and utility of their AI agents.

These points will eventually convert into $SHELL tokens, offering a more tangible incentive for creators.

This tokenization is a critical component of the upcoming airdrop, which aims to reward creators whose AI agents gain significant traction.

Consumers can also stake tokens on AI agents, generating income based on the performance of these agents.

This dual incentive structure ensures that both creators and users are fairly compensated for their contributions to the ecosystem.

How to Earn $SHELL

The $SHELL token is the native ERC-20 token of the MyShell ecosystem, designed to facilitate transactions, grant access to premium features, and support creator initiatives.

The total supply of $SHELL is capped at 1,000,000,000 tokens, with a deflationary model to maintain scarcity and value.

The tokenomics involves various allocation categories, including Private Sale (26%), Advisors (3%), Team (17%), Partnership & Marketing (12%), Community Incentive (40%), and Liquidity (2%).

Tokens are distributed through different mechanisms: Private Sale and Advisor allocations are subject to cliffs and linear release schedules, while Community Incentive tokens are released seasonally to encourage engagement.

Users can obtain $SHELL through activities such as creating AI applications, participating in platform events, and contributing open-source models.

Circulation diagram of $SHELL

The flexible and dynamic distribution model ensures that the ecosystem remains vibrant and responsive to user contributions and market conditions.

MyShell’s innovative approach, combined with its robust incentivization mechanisms and strategic backing from Binance Labs, positions it as a significant player in the evolving AI and blockchain landscape.

MyShell’s Multichain Strategy and Future Plans

MyShell operates on multiple blockchain networks, including Polygon and Binance’s opBNB, ensuring flexibility and security for its users.

The platform is also planning to launch its own Layer 2 blockchain by the end of the year, which is expected to provide a more tailored experience for creators and developers, allowing them to operate within a customised environment that caters specifically to AI development.

This multichain strategy reflects MyShell’s broader philosophy of openness and flexibility, ensuring that creators are not confined to a single ecosystem and can instead choose the most suitable platform for their needs.

Building an Equitable AI Ecosystem

MyShell’s mission is to democratise the creation and distribution of AI-powered applications.

Ethan emphasised the platform's transformative potential, describing MyShell as a builder of "composable and multimodal AI primitives with real use cases and broader adoption."

Ethan’s vision is to create an open ecosystem that revolutionises traditional AI production, with Binance Labs playing a crucial role in realising this vision.

The platform’s open-source model layer allows developers to easily adapt and enhance existing AI applications, fostering collaboration and transparency.

This collaborative approach is further supported by the AI creator forum, where creators can exchange ideas, share resources, and build unique AI apps together.

The platform also features an AI App Store, making it easier for consumers to discover and use advanced AI technology.

This store is expected to play a pivotal role in the broader adoption of AI-driven applications, enabling users to access a wide range of AI tools and services in a decentralised and user-friendly manner.

MyShell’s Financial Backing and Market Potential

In March 2024, MyShell secured $11 million in pre-Series A funding, bringing its total funding to $16.6 million.

The funding round was led by Dragonfly, with participation from prominent investors such as Delphi Ventures, Bankless Ventures, and OKX Ventures.

Notably, the round also attracted support from influential figures like Balaji Srinivasan and Illia Polosukhin.

@myshell_ai Phase 01 Testnet is Live.

Cost: Nothing ($0)
Raised: $11 million
Backed by Binancelab

This is the easiest testnet I`ve ever done, Don`t Fade!

Guide;
⚡️ Go to https://t.co/oETwsiwuzQ
⚡️ Sign up with your Email and verify.
⚡️ Connect your social accounts. pic.twitter.com/Q21HodYRQy
— KINGBEST 🍁🦾 (@__kingbest) May 4, 2024r/> a

The backing from Binance Labs, through its Incubation Program, is particularly noteworthy.

Binance Labs’ incubation programs have consistently attracted early-stage projects with transformative potential.

MyShell’s selection for Season 6 of the Binance Labs Incubation Program suggests that Binance sees significant promise in the startup’s vision of an open and collaborative AI ecosystem.

A Paradigm Shift or Just a Fad?

The partnership between Binance Labs and MyShell could have far-reaching implications, particularly in how AI technologies are developed, shared, and monetized.

By leveraging blockchain’s decentralised ethos, MyShell aims to challenge the traditional gatekeepers of AI, offering creators and developers a platform where innovation can flourish without the constraints typically imposed by large tech corporations.

This investment also signals a broader trend in the tech industry where AI and blockchain are increasingly converging.

The integration of decentralised finance (DeFi) principles with AI could open new avenues for monetization and collaboration, potentially reshaping the future of AI-driven applications.

As MyShell continues to grow and evolve, it will be interesting to see how this decentralised AI ecosystem influences the broader AI and blockchain landscapes.

However, the road ahead is fraught with uncertainty.

MyShell’s success hinges on its ability to maintain the delicate balance between decentralisation and practical utility.

The real challenge lies in overcoming potential scalability issues and ensuring that its reward system remains sustainable amidst growing competition.

As the boundaries of AI and blockchain blur, MyShell’s innovative model may either lead to a groundbreaking shift or reveal the inherent limitations of such ambitious integrations.