Eliza Labs Abandons Native Token Amid Settlement

Eliza Labs has abandoned its native token to focus on developing its AI framework, ElizaOS. The project's founder, Shaw Walters, announced that the foundation supporting the token is winding down after a class-action lawsuit was settled.

The lawsuit alleged false advertising and deceptive practices related to the ai16z and ElizaOS tokens. While the claims remain allegations rather than findings by a court, Walters acknowledged that the project lacked the capital needed for a prolonged legal defense.

As a result of the settlement, the remaining treasury funds were transferred to a group of tokenholders represented by Burwick Law. This means that there will be no further support for the token or buybacks.

Walters emphasized that he retains control of the underlying intellectual property and plans to continue developing ElizaOS without a native token or foundation structure.