# How IAO works?

The process of creating and introducing new AI agents into the XYZ ecosystem is facilitated through the Initial Agent Offering (IAO). This mechanism enables creators to debut AI agents by staking a specific quantity of $NMT tokens, which are subsequently utilized to set up liquidity pools for the agent's tokens.

<figure><img src="https://1871004340-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FufffFxnKFKi2PrZQ4Sv7%2Fuploads%2F1SHsAhXZMjzD50SQw5bw%2Fimage.png?alt=media&#x26;token=ffc2ea8e-e07f-4b37-b536-3c25c5ce7215" alt=""><figcaption><p>How IAO works</p></figcaption></figure>

**Liquidity pool explanation:**

Once bonding curve limit is reached 100k NMT market cap，The token pair with $NMT will be created automatically. The liquidity pool is required to locked for ten years to protect users.
