In the unfolding story of how artificial intelligence and blockchain technologies converge to redefine digital infrastructure, Kite stands out as one of the most visionary projects at this intersection. Rather than adapting existing human-centric systems to new AI use cases, Kite was built from first principles to serve the emerging agentic economy—a world where autonomous AI agents can act, transact, and collaborate economically without requiring constant human intervention. The project’s core aim is to provide these agents with not just programmable logic and communication, but a trust layer consisting of verifiable identity, secure governance, and real-time payment capabilities on an EVM-compatible Layer-1 blockchain.
At its heart, Kite envisions a future where AI agents are first-class economic actors. Traditional blockchains, especially those built for human users, were not designed to cope with the demands of autonomous agents that must execute thousands of transactions per second, negotiate terms with other software entities, and settle accounts without human oversight. Kite’s founders argued that for AI agents to flourish, they need an infrastructure that understands their unique requirements—micropayments at scale, cryptographically secure identities, and governance that can define and enforce operational rules. To build such a foundation, Kite introduced its purpose-built blockchain and protocols designed around these demands.
The Kite blockchain itself is an EVM-compatible Layer-1 network characterized by a design optimized for real-time, low-cost transactions and rapid coordination among autonomous agents. It employs a customized staking and consensus approach, often referred to in the ecosystem as Proof of Artificial Intelligence (PoAI), which evolves the conventional proof-of-stake mechanisms into something more aligned with the needs of AI workloads and contributor attribution. Developers and agents leveraging Kite benefit from a modular architecture that includes state channels for ultra-low transaction fees, dedicated payment lanes for stablecoins, and agent-specific transaction types that extend beyond simple value transfer into programmable computation and API call execution.
Underpinning much of Kite’s innovation is its three-layer identity architecture, which creates a hierarchical separation between users, agents, and sessions. This system ensures that autonomous agents can operate securely with cryptographically verifiable identities, while maintaining clear boundaries of authority and accountability. At the top level sits the human user, whose root authority over their digital assets anchors the chain of trust. Below that are delegated agent identities—distinct addresses derived via deterministic hierarchical key derivation, enabling agents to transact independently yet provably on behalf of their owners. Finally, ephemeral session identities handle single operations, limiting risk exposure while still facilitating transactional flow. Through this layering, Kite achieves a defense-in-depth identity framework that guards against unauthorized access while preserving the autonomy necessary for agents to function effectively.
Identity is only part of the story; programmable governance is another pillar of Kite’s architecture. While smart contracts already enable programmable money, autonomous agents require rules that can span multiple services and constrain behavior across dynamic contexts. Kite’s unified smart contract account model allows users to authorize agents with granular permissions and spending constraints, ensuring that an agent can only operate within clearly defined limits. These rules can be temporal, conditional, or hierarchical, enabling sophisticated guardrails on AI behavior that enforce policies like monthly spending caps or transaction triggers tied to external conditions. On Kite, code truly becomes law for AI agents, not merely a set of guidelines.
Built on these identity and governance foundations, Kite introduces native payment rails optimized for autonomous systems. Rather than routing value through traditional financial intermediaries, Kite’s payment model is stablecoin-native, meaning agents can transact with USDC or other supported stable assets directly on chain with sub-hundred-millisecond finality and microscopic fees. Using state channels, the network can process rapid streams of micropayments with just two on-chain transactions (opening and closing a channel), enabling high-frequency, real-time economic activity that would be prohibitively expensive on most existing blockchains. This innovation fundamentally alters how AI agents interact economically, enabling everything from micro-subscriptions and data purchases to complex multi-agent commerce without friction.
Beyond the core blockchain, Kite’s ecosystem includes tools like the Agent App Store, a marketplace where services—whether APIs, data feeds, or digital goods—are listed and automatically discoverable by autonomous agents. In this marketplace, agents can autonomously negotiate terms, execute payments, and accrue reputation based on verified interactions. Identity and reputation mechanisms give service providers confidence that incoming agent transactions are credible, while agents benefit from a rich catalog of services they can integrate into their workflows dynamically. SDKs and protocol bridges like the Model Context Protocol (MCP) server further facilitate integration, allowing existing AI applications to join the agentic economy without reinventing core infrastructure.
A critical piece of Kite’s strategic positioning is its integration with the x402 Agent Payment Standard, developed in collaboration with Coinbase Ventures. This native compatibility means Kite can implement standardized agent-to-agent intent signals directly on chain, enabling seamless send, receive, and reconciliation flows without bespoke adapters. As one of the first Layer-1 networks to embrace x402 at the protocol level, Kite is positioning itself as a universal execution and settlement layer for agentic commerce, enabling interoperability across emerging ecosystems.
The KITE token is the connective tissue that fuels this entire ecosystem. It underlies governance, staking, fee payments, and access to network services. While Kite’s utility launches in phases, even early adopters can participate in governance and ecosystem incentives from day one. As the network matures, KITE will support staking for security and consensus participation, fee usage for transaction settlement, and governance roles where holders help guide the evolution of the agentic economy. In many ways, KITE aligns incentives across users, developers, and service providers, ensuring that those who contribute to the network’s growth have a stake in its long-term success.
The broader context of Kite’s development highlights the deep institutional confidence in its mission. The project has raised significant capital—totaling around $33 million—with contributions from PayPal Ventures, General Catalyst, Coinbase Ventures, Samsung Next, and others. This backing reflects belief not just in the technology, but in the vision of an agentic internet where autonomous systems transact at scale, unlock new business models, and interact in economically meaningful ways without human friction. Moreover, integrations with platforms like Shopify and PayPal signal real-world pathways for AI agents to engage in commerce with established merchants, opening possibilities for autonomous shopping agents, intelligent supply chain automation, and micro-subscription services that pay per usage.
In essence, Kite represents more than a blockchain—it embodies a shift in how computational agents will engage with the digital economy. By providing the foundational infrastructure that treats identity, governance, and payments as first-class primitives, Kite aims to unlock an era where AI agents no longer operate as passive tools but as active participants in economic ecosystems. As the agentic economy continues to evolve, platforms like Kite will play a central role in enabling secure, efficient, and autonomous interactions at machine speed, redefining the boundaries of what decentralized networks can achieve
