The rise of the agent economy: Autonomous agent organizations as a new form of economic infrastructure

This paper examines autonomous artificial intelligence (AI) agents and the emerging agent economy through a case study of the blockchain-based Virtuals Protocol. It analyzes how tokenized ownership, decentralized governance, and standardized coordination support economic organization in multi-agent systems. Drawing on transaction cost economics and network economics, the study identifies mechanisms through which the protocol may reshape coordination costs and support network effects through agent specialization and composability. The concept of Autonomous Agent Organizations (AAOs) is introduced as a functional subclass of Decentralized Autonomous Organizations (DAOs), distinguished by their greater economic autonomy and composable inter-agent collaboration. AAOs represent a novel form of economic organization that transcends traditional boundaries between firms, markets, and platforms. The findings have practical implications for platform design, governance, and regulatory development. The study contributes to research on agentic AI and digital platform governance by explaining how agent autonomy, tokenized ownership, and protocol-based coordination shape emerging forms of economic organization.