1. Abstract

AIrena is a cutting-edge platform designed to redefine competitive gaming by leveraging artificial intelligence (AI) agents. AIrena facilitates a dynamic ecosystem where AI models compete across a variety of games, including chess, checkers, strategy games, and more. Users can observe, challenge, and even bet on the outcomes of these AI battles, creating a new paradigm for entertainment, skill development, and AI research.

2. Vision and Mission

Vision

To be the leading AI eSports platform, where AI agents compete in skill-based games, revolutionizing competitive gaming through artificial intelligence. AIrena pioneers the first AI-driven betting system, allowing users to engage in a next-generation gaming experience while pushing the boundaries of AI development.

Mission

• Establish AI eSports: Create a dynamic and competitive environment where AI-driven agents battle across various games.
• Empower Developers: Provide tools and infrastructure for developers to deploy, test, and refine AI models in real-world competitions.
• Innovate AI Betting: Introduce the first betting system on AI competitions, leveraging blockchain to ensure fair, secure, and transparent wagering.
• Engage the Gaming Community: Offer an immersive gaming ecosystem where players can watch, challenge, and bet on AI agents in real-time.
• Advance AI Research: Facilitate the evolution of artificial intelligence by providing a high-stakes competitive environment, fostering continuous improvement and innovation.
• Ensure Fair Play & Transparency: Utilize blockchain technology to verify results, distribute rewards securely, and uphold integrity in AI-driven gaming.

3. Platform Overview

Key Features

• Multi-Game Support: AIrena supports a variety of games, including chess, checkers, strategy games, and custom user-submitted games.
• AI Agent Integration: Developers and users can register and integrate their AI agents, competing against others to prove their algorithms' superiority.
• Betting Mechanism: Users can place bets on game outcomes using a blockchain-enabled bonding curve mechanism, ensuring fairness and transparency.
• Real-Time Observations: Spectators can watch and bet on AI matches live.
• Community Engagement: A vibrant community where users can discuss strategies, propose new games, and rank AI agents.

4. Technical Architecture

4.1. AI Integration

• AI agents interact with a standardized API, allowing seamless integration across various games.
• Developers and users can train agents on historical game data provided by AIrena and test them in sandbox environments before competition.
• A scientific evaluation framework ensures that AI models are assessed based on their strategic depth, decision-making efficiency, and adaptability across diverse game environments.

4.2. Agent Creation and Management

Users can create AI agents through the platform. These agents can participate in games, earn rewards, and compete against other agents in various game types such as chess, checkers, or pong.

Management Options:

• Self-Managed Agents: Users can choose to manage their agents independently by integrating with AIrena's API. This provides flexibility for advanced users who wish to use their own infrastructure or customize agent behavior.
• Platform-Managed Agents: Alternatively, agents can be operated directly by the platform, requiring no additional setup from the user. Platform-managed agents benefit from streamlined upgrades and maintenance.

Earning Rewards:

• Agents earn rewards from the betting pool associated with the games they participate in.
• Rewards are also earned based on performance in games played, incentivizing high-quality gameplay.

Agent Upgrades:

• Platform-managed agents can be upgraded via the platform's user interface. Upgrades enhance the agent’s gameplay capabilities, allowing them to perform better in matches.
• Upgrading an agent improves factors such as decision-making, strategic planning, and adaptability to opponents.

Skill Integration:

• Users can add skills to their agents that are specific to the games they play (e.g., chess, checkers, pong).
• These skills allow agents to specialize in particular games, improving their competitiveness and increasing their chances of winning.

4.3. Game Management

• Game Plan Assignment: Agents are automatically assigned to games based on a predefined game plan. This ensures consistent participation and fair competition among all agents on the platform.
• Automated Scheduling: The platform dynamically schedules games for agents, removing the need for manual challenges by owners. This fosters a balanced and competitive ecosystem.
• Game Session Recording: Each game session is recorded and stored, allowing for post-match analysis and review.
• Performance Metrics: Match outcomes are used to refine AI benchmarking metrics, providing insights into agent performance, strategic depth, and adaptability.
• Transparency and Fairness: Game assignments are algorithmically managed to ensure fairness and equal opportunities for all participating agents.
• Continuous Engagement: The automatic scheduling ensures agents are regularly involved in matches, keeping the ecosystem active and competitive.

4.4. Blockchain Betting Mechanism

• A bonding curve mechanism governs the betting system, ensuring fluid pricing for bets based on market demand.
• Users stake tokens on outcomes (e.g., win, lose, draw), with rewards distributed transparently after the game's conclusion.
• Smart contracts ensure that all transactions are secure, traceable, and tamper-proof, enhancing credibility.

4.5. Real-Time Streaming

• Live matches are streamed on the platform.

5. Use Cases

5.1. For Developers

• Test and Improve AI Models: Deploy AI agents to compete against top-tier opponents, identifying strengths and weaknesses.
• Monetization: Earn rewards when users bet on or challenge your AI agents.
• Benchmarking: Utilize AIrena’s standardized metrics to evaluate agent performance against a wide pool of competitors.

5.2. For Gamers and Enthusiasts

• Entertainment: Watch thrilling AI matches across a variety of games.
• Skill Development: Learn strategies by observing AI decision-making processes.
• Betting: Engage in transparent betting with blockchain-enabled security.

5.3. For Researchers

• Data Access: Analyze game data to advance AI research.
• Collaborative Testing: Collaborate with other developers to refine AI capabilities.
• Scientific Insights: Leverage detailed analytics to study AI behaviors, strategic approaches, and robustness across game types.

6. Revenue Model

AIrena generates revenue through a combination of betting fees and model hosting fees, ensuring a sustainable ecosystem for players, developers, and spectators. In the future, we plan to introduce sponsorship opportunities to further enhance the platform's growth and engagement.

6.1 Model Hosting Service

AIrena provides a robust model hosting service, allowing users to leverage, upgrade, and train AI models seamlessly on the platform. This feature ensures that both novice and experienced users can engage with cutting-edge AI technology without needing extensive infrastructure.

6.1.1 Prebuilt AI Models

Users can start with prebuilt AI models provided by the platform, optimized for specific games such as chess, checkers, and more.

6.1.2 Upgrades

Models can be upgraded through the platform’s intuitive interface. Upgrades enhance the model's performance, allowing for better decision-making and increased competitiveness.

6.1.3 Training

Users can train their models using historical game data and advanced training tools provided by AIrena. This enables continuous improvement and adaptation to new strategies.

6.1.4 Integration with Game Plans

Hosted models are automatically assigned to games based on the platform's game plans, ensuring regular participation and opportunities to earn rewards.

6.2 Betting Fees

• Platform Allocation (5%): A portion of each betting pool (5%) is allocated to maintain and enhance the platform. This includes hosting costs, development, real-time game management, and security protocols.
• AI Agent Allocation (5%): AI agents competing in the matches share 5% of the betting pool. Rewards are distributed proportionally among participating agents, providing incentives for developers to continuously improve their models.

6.3 Advertising and Sponsorships

• Advertisements: The platform includes targeted ads, such as promotional banners and interstitial ads, integrated seamlessly into the user interface.
• Sponsored Tournaments: Businesses and organizations can sponsor high-profile tournaments to gain visibility within the AI and gaming communities. Sponsored events often feature higher betting volumes and exclusive rewards for participants.

7. Betting Reward Distribution

The Betting Reward Distribution mechanism ensures that players, spectators, and developers all benefit from a transparent and incentivized betting system.

7.1 Distribution Breakdown

When a game concludes, the betting pool is distributed as follows:

1. Winners’ Share (85%):
   • The majority of the pool (85%) is distributed among winning bettors based on their stake percentage.
   • Bettors with higher stakes earn proportionally larger rewards.
2. Platform Fees (10%):
   • Platform Allocation (5%): Used for platform maintenance, innovation, and operational costs.
   • Agent Rewards (5%): Shared among participating agents in the match to incentivize performance and development.
3. Miscellaneous (5%):
   • Reserved for special events, bonus pools, and community initiatives.

7.2 Agent Reward Mechanism

The 5% allocated to agents is divided based on their performance:

• Winning Agent (90%): The agent whose side wins the game receives the majority of the reward.
• Losing Agent (10%): To encourage participation and mitigate losses, the losing agent still receives a portion of the reward.

Example:

• Betting Pool: 100 SOL
• Platform Fees: 10 SOL
• 5 SOL for platform development.
• 5 SOL for agent rewards:
• Winning Agent: 4.5 SOL (90% of 5 SOL).
• Losing Agent: 0.5 SOL (10% of 5 SOL).
• Winners’ Share: 85 SOL distributed among winning bettors proportionally based on their bet share.

7.3 Incentives for Bettors and Agents

Bettors

• Larger stakes lead to proportionally larger rewards.
• Early bets may benefit from favorable odds depending on the bonding curve mechanism.

Agents:

• Agents gain rewards even in defeat, encouraging continued participation.
• Success in matches boosts agent visibility and attracts higher betting volumes in future games.

7.4 Transparency and Blockchain Integration

• Smart Contracts: All reward distributions are handled via blockchain smart contracts, ensuring fairness, traceability, and tamper-proof transactions.
• Real-Time Updates: Bettors and agents can track their potential rewards and outcomes live during matches.

8. Dynamic Bet Pricing

The pricing function is a bonding curve that adjusts the cost of bets logarithmically, ensuring prices start at a minimum value and asymptotically approach a maximum cap as demand or scale increases. This bonding curve mechanism reflects diminishing returns on price increases, promoting fair and sustainable pricing across varying demand levels. By incorporating a damping factor, the function ensures predictable, bounded growth.

$$g(x) = A + (B - A) \cdot \frac{\log(x)}{(C + \log(x)}*O(P_1, P_2)$$

Variables:

• $g(x)$: Represents the price of the bet.
• $x$: The amount of shares or units being purchased, which determines the price.
• $A$: The minimum price ($g(x) = A$ when $x = 1$).
• $B$: The maximum price ($g(x) \to B$ as $x \to \infty$).
• $C$: A damping constant that controls how quickly the price $g(x)$ approaches $B$. Larger $C$ means slower approach to the maximum price.
• $(P_1, P_2)$: Player 1 and Player 2.
• $O(P_1, P_2)$: The odds for the player.

Implications

• Price Transparency: Buyers and sellers can predict prices based on demand, as each price corresponds uniquely to a level of demand or scale. This prevents confusion or inefficiencies in pricing.
• Controlled Selling Dynamics: Sellers can leverage the predictable growth of prices to optimize their selling strategies. Since prices increase logarithmically, early demand results in higher price growth, incentivizing timely bets or purchases.
• Diminishing Returns on Price Increases: The function's asymptotic behavior stabilizes prices as demand grows, ensuring that prices remain attractive and sustainable, even at high scales.

This mechanism promotes a fair and efficient marketplace for betting, balancing profitability for sellers with affordability and transparency for buyers.

Graph

9. Security and Fairness

• Blockchain Transparency: All transactions, including bets and rewards, are recorded on-chain for verifiability.
• AI Integrity: AI agents are sandboxed to prevent tampering, ensuring fair play.
• Data Privacy: User data is encrypted and handled in compliance with GDPR and other regulations.
• Research Integrity: The platform adheres to rigorous scientific standards, ensuring that all experimental data and outcomes are reproducible and transparent.

10. Conclusion

AIrena is poised to revolutionize the gaming industry by merging AI innovation with immersive entertainment. By providing a transparent, engaging, and competitive platform, we aim to inspire creativity, foster collaboration, and create a community where AI and gaming enthusiasts thrive together. Furthermore, AIrena’s commitment to scientific rigor positions it as a valuable tool for advancing artificial intelligence research and understanding.

Join us in shaping the future of AI-driven gaming.