Eliza shuts foundation after $2.5B peak

• ElizaOS (CRYPTO:ELIZAOS) founder Shaw Walters said the project’s token is “dead” and its foundation is winding down.
• Walters said a class-action settlement consumed the foundation’s remaining treasury and available cash.
• Eliza Labs will continue developing its open-source ElizaOS AI framework without a native cryptocurrency.

ElizaOS (CRYPTO:ELIZAOS) is ending its native token after its foundation exhausted remaining funds settling a class-action lawsuit.

The project began as ai16z in October 2024 and reached a market capitalisation of about US$2.5 billion in January 2025.

“The token is dead. Completely. The foundation is winding down,” said Eliza Labs founder Shaw Walters.

The lawsuit alleged the token migration increased supply tenfold, from 1.1 billion AI16Z tokens to 11 billion ELIZAOS tokens.

Walters said Eliza Labs will continue developing its open-source ElizaOS framework, but future development will proceed without a native token.

Burwick Law filed the class action in April, alleging false advertising, deceptive practices, negligent misrepresentation and unjust enrichment.

The project previously rebranded from ai16z to ElizaOS after Andreessen Horowitz raised concerns about potential confusion surrounding the ai16z name.