Shaw Walters, the founder of ElizaOS, the AI agent project that started life as ai16z, has said that its token is dead and its foundation is winding down.
Walters shared this information via his personal X account, stating that he is done fighting for the token side of the project and is moving on to something new.
He wrote, “I am starting over, since I own the IP, and I am never letting a token come close to Eliza again.”
What reasons did Walters give for shutting down ElizaOS?
Of all the challenges that plagued the platform, it may seem the federal class action brought by Burwick Law was the final straw, as Walters stated that his team handed the last of its treasury and cash reserves to the plaintiffs as settlement.
According to Walters, the settlement was not a concession that the project did anything wrong.
He wrote, “Their claim was ridiculous, but we didn’t have the capital to legally fight it so we settled on giving them the rest of what we had.”
He also pushed back on the idea that he cashed out, stating, “I never sold my ai16z, never made money other than a modest salary, making as much as our other engineers from essentially a day job.”
From a $2.6 billion peak to a legacy contract worth $358,000
The project launched on Solana on October 24, 2024, under the AI16Z ticker. It pitched itself as a venture-style decentralized autonomous organization (DAO) run by autonomous AI agents.
By January 2, 2025, the token hit its all-time high of $2.48, with a fully diluted valuation (FDV) north of $2.5 billion, per CoinMarketCap data.
The project’s name, ai16z, bore a resemblance to the venture capital firm Andreessen Horowitz’s a16z, and the latter demanded that the project stop using that shorthand, which prompted a rebranding.
Walters announced that the project had rebranded to ElizaOS in late January 2025. This also prompted a migration to a new ELIZAOS token, and this occurred between October and November 2025, stretching supply from about 1.1 billion to 11 billion coins, with legacy holders offered a 1-for-6 swap.
The abandoned AI16Z contract trades currently around $0.00033, a market value of approximately $358,000. The token is down by over 99% from its high.
The successor, the ELIZAOS token, currently trades around $0.00031, with a market cap of $2.91 million. It briefly hit its all-time low on August 5, trading around $0.0002954.
What did Burwick Law allege in its suit against ElizaOS?
The suit, which was filed in the U.S. District Court for the Southern District of New York, named Eliza Labs Inc., Walters, Sebastian Quinn-Watson, and the AI16Z DAO. The complaint stated that at least 3,945 wallet addresses lost money in the project. They sought treble damages, disgorgement, and a constructive trust over traceable assets.
The plaintiffs claimed that the project sold itself as governed by an autonomous AI agent while humans ran it by hand. It brought back an October 30, 2024, Protos report that first questioned the “Marc AIndreessen” persona.
Burwick also said that the team leaned on the a16z brand to pump demand and that the 2025 migration handed about 40% of the new supply to insiders and private investors. Walters has consistently disputed the substance of those allegations.
What is Walters’ next act?
While Walters stated that he is winding down, his post did not confirm it was the end of the road for Eliza. He wrote, “We’re still building Eliza and the underlying OS, faster and better than ever, unburdened by all the bullshit and sidequests and pressure to launch launchpad #83837.”
In a post he made a few hours before he confirmed the end of the token, Walters stated that he is “looking to collaborate with robotics, physical AI, and hardware companies.”
He wrote that they are building the Linux-based agentic operating system for those sectors, adding that it is MIT licensed and fully white-labeled.
He added that he would happily drop ElizaOS for a bigger project if a more advanced open-source agent system existed, but said nothing else is as far along as what his team has built.
