Freysa AI Funding Analysis: Technical Architecture and Market Potential of a Base-based AI Project

Freysa AI: Innovative Practice of AI Agent Games on Base

On May 28, 2025, Freysa AI (FAI), a crypto AI project built on Base, announced the completion of a $30 million funding round, with investors including Coinbase Ventures, Selini Capital, and North Island Ventures. The project combines AI model training with blockchain token incentives through an “adversarial agent game” mechanism, aiming to build the first open platform supporting multi-AI agent competition. Following the announcement, the FAI token surged 45% within 24 hours, with its circulating market cap surpassing $229 million, ranking among the top five AI projects by market cap in the Base ecosystem.

This market insight article discusses how Freysa AI integrates AI and blockchain on Base, analyzing the impact and challenges of its $30M funding round on the crypto ecosystem.

Technical Architecture: On-Chain AI Training and Privacy Protection

Freysa AI’s core innovation lies in combining the adversarial agent game framework with zero-knowledge proof (ZKP) privacy protection:

• On-chain training arena: Users deploy AI agent models via smart contracts to compete for rewards in game scenarios. Training data and model parameters are recorded on-chain in real time, ensuring transparency and verifiability. For example, the average task completion time for image recognition in testnet was 30% faster than off-chain solutions.

• Data privacy protection: ZKP technology encrypts user input data, only decrypting key parameters during verification to prevent model plagiarism or data leaks.

• Base chain advantages: Leveraging Coinbase’s ecosystem resources, transaction gas fees are as low as $0.0002, supporting high-frequency AI interaction scenarios.

Developers can use JuCoin’s on-chain analytics tools to monitor Freysa AI’s smart contract call frequency and gas consumption trends in real time.

Funding Details and Institutional Strategy

This funding round includes both equity and token sales, reflecting differentiated institutional bets on the AI+Blockchain sector:

• Coinbase Ventures: Made a strategic equity investment in Freysa’s parent company Eternis AI to strengthen Base’s influence in the AI space, aiming to rival Solana’s Render Network.

• Selini Capital: Participated in the FAI token round, targeting the GameFi + AI narrative. Its previous investments in games like Parallel have demonstrated market traction.

• North Island Ventures: Listed as a strategic investor on its website, focusing on the potential of combining RWA (real-world assets) with AI model tokenization.

FAI has a total supply of 8.19 billion tokens, with 12.1% (approx. 990 million) currently in circulation. Remaining tokens will be gradually released through staking rewards and ecosystem funds. Staking APY ranges from 18% to 25%. Investors should note that 21% of tokens are set to unlock in Q4 2025, which may trigger short-term sell pressure.

Market Impact: AI Sector Heats Up and Ecosystem Competition

Freysa AI’s funding round signals two major trends:

• Rise of Layer2 AI infrastructure: TVL of AI-related projects on Base grew 32% week-over-week, with Freysa contributing the bulk of the increase and attracting developers migrating from Ethereum-based AI protocols.

• Institutional capital shift: The entry of traditional VC North Island Ventures is pushing AI+Blockchain from proof-of-concept toward scalable applications.

However, the project still faces multiple challenges:

• Technical bottlenecks: AI training currently relies on off-chain computation; full decentralization may cause response delays (testnet latency: 8–15 seconds).

• Competitive pressure: Nosana on Solana offers higher TPS, drawing developer attention.

• Regulatory risks: If the U.S. SEC classifies FAI as an unregistered security, the token model may need restructuring.

Future Plans: Cross-Chain Expansion and Compliance Pathways

Freysa AI’s roadmap focuses on ecosystem scaling and technical upgrades:

• Q3 2025: Launch of mainnet v1.2, supporting collaborative training of multiple AI agents and cross-chain asset interaction.

• Q4 2025: Expansion to Polygon zkEVM chain to enhance privacy-preserving transactions and reduce cross-chain costs.

• Compliance layout: Plans to apply for an EU MiCA license and promote FAI as a compliant interaction medium for stablecoins in Europe.

Its long-term vision includes tokenizing AI model ownership—e.g., trading trained AI agents as NFTs and linking them to real-world IP rights. If its mainnet delivers as planned, FAI’s market cap could surpass $1 billion, placing it among the leading AI crypto projects.