December 15, 2025 A few months ago I kept running into the same question while reading about new AI agents. Everyone talked about what they could do, write code, book compute, scrape data, negotiate tasks. Almost nobody talked about how they actually pay for any of it. Not in demos, not in blog posts, not beyond vague phrases like “autonomous transactions.”

Once agents start doing real work, money becomes unavoidable. They need to pay for resources, compensate other agents, and manage budgets without a human clicking approve every time. Most explanations felt hand-wavy at best.

That’s when I came across GoKiteAI, usually just called Kite, and it finally made sense. They’re not building another general-purpose chain or chasing the next big AI model. They’re focused on the boring but necessary part: the financial plumbing that lets autonomous agents operate on their own.

It’s been about six weeks since the KITE token launched in early November. The first few days were chaotic, fast price moves, heavy volume, everyone trying to figure out what they were looking at. Since then, things have cooled down. Today the token trades around $0.086, with a market cap near $155 million and daily volume hovering between $30 and $40 million.

That’s well off the early peak around $0.19, but that kind of pullback is normal after an initial launch rush. Circulating supply is about 1.8 billion out of a 10 billion total. Fully diluted value is still high, but the token isn’t just decorative. It’s used for fees, staking validators, and governance, which at least gives it defined roles instead of vague promises.

What makes Kite interesting is how narrowly focused it is. This is an EVM-compatible Layer 1 designed specifically for agents. Fast blocks, very low fees, and a custom consensus model called Proof of AI. Instead of just securing the network, nodes are meant to contribute useful computation and get rewarded for it.

The most compelling piece is the x402 protocol. It borrows an old web idea and adapts it for agents. Instead of settling every tiny payment on-chain, agents agree off-chain using signed stablecoin messages, then only settle the net difference later. Stablecoins like USDC and PYUSD move natively, without wrappers or extra hops.

Agents also get cryptographic passports. These act as identity and reputation layers, with programmable rules like spending limits, approval requirements, or trust thresholds. It’s the kind of thing that only sounds boring until you imagine thousands of agents transacting every second.

Testnet activity has been strong. Billions of interactions logged. Millions of passports issued. Developers are already experimenting with modules for multisig controls, asset bridges, and permissioned spending. Mainnet is the big milestone everyone is waiting for, with performance targets aimed at the kind of throughput micro-payments between machines will demand.

The funding helps explain why the scope is ambitious. Kite has raised $33 million across rounds, including a Series A backed by PayPal Ventures and General Catalyst, along with groups tied to Temasek and Avalanche. That’s serious backing for a project this specialized, and it signals that larger players are thinking seriously about agent-driven economies.

The team hasn’t gone quiet either. They’ve been hosting builder events in different regions, meeting developers face to face, and hiring engineers focused on scaling and infrastructure. Community discussions are practical, not speculative. How does reputation transfer between contexts? How do you prevent spam between agents? How do agents coordinate across chains without constant friction?

There are real risks. The token moves with the broader market, and when fear hits, it drops like everything else. Unlocks will add supply over time. Competitors could copy parts of the design. Regulators may eventually take a closer look at fully autonomous financial activity. And mainnet has to launch clean and actually handle load.

Still, the momentum feels grounded. Every major AI narrative right now points toward agents as the next step, not tools, but independent workers. If that future arrives, someone has to handle payments, identity, and trust between machines. Kite is positioning itself exactly there, with working components already being tested instead of just talked about.

I’ve watched plenty of AI-flavored crypto projects chase hype and stall out. Kite has been quietly hitting milestones: steady testnet growth, verifiable compute partnerships, clear documentation that developers actually use. It’s not flashy, but it’s consistent.

If you’re building agents or just curious where AI and crypto intersect in a practical way, Kite is worth watching. gokite.ai has testnet access and documentation laid out clearly. This is just my own perspective after digging through updates, watching the testnet numbers climb, and listening to what builders are actually excited about. One person’s take on a project working on a problem that’s only going to get bigger.

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@KITE AI

$KITE