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Eliza founder says Eliza token is dead, foundation shuts down
The Eliza Foundation is winding down after a class-action settlement exhausted its remaining treasury, and the project will move to the open-source ElizaOS AI agent framework without a native token.
Decrypt reports that Eliza Labs founder Shaw Walters said the Eliza token is no longer part of the project and that the Eliza Foundation is winding down after a class-action settlement consumed its remaining funds.
Walters said the remaining treasury was used to settle a lawsuit brought by Burwick Law, and that Eliza will not have a native token going forward. He also said the team will focus on developing the open-source ElizaOS AI agent framework.
The announcement follows Eliza’s launch on Solana in October 2024 as ai16z, and its later rebrand to ElizaOS after Andreessen Horowitz objected to the ai16z name. Decrypt also notes the token surged to a market capitalization of about $2.5 billion in January 2025 before later developments led to the settlement.
According to Decrypt, Burwick Law filed a class-action lawsuit in April in the U.S. District Court for the Southern District of New York, alleging claims including false advertising and deceptive business practices. The complaint alleges the token was marketed as a governance token for an autonomous AI-managed venture fund when it was controlled by insiders, and it also describes dilution from a migration that expanded the token supply from 1.1 billion to 11 billion.
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