Eliza Token 'Dead,' Foundation Shuts Down After Class-Action Lawsuit
Eliza Labs founder Shaw Walters announced that the Eliza token is 'dead' and the project's foundation is shutting down. The decision comes after a class-action lawsuit settlement, which consumed the remaining treasury of the project. In an X post, Walters stated that the token had been depleted and would no longer have a native token.
The project, launched on Solana in October 2024 as ai16z, aimed to be an AI-run decentralized autonomous organization using the open-source Eliza framework for venture capital decisions. The token surged to a market capitalization of about $2.5 billion in January 2025 before rebranding to ElizaOS after Andreessen Horowitz objected to its use.
A class-action lawsuit was filed by Burwick Law in April, alleging false advertising and deceptive business practices. Walters denied personally profiting from the project, stating that he earned only a modest salary comparable to other engineers.
Despite abandoning tokenization, Walters plans to continue developing ElizaOS with the mission of creating a world where individuals own their data without having to pay for it.