Shaw Walters, founder of Eliza Labs, announced the death of the Eliza token and the dissolution of the Eliza Foundation after a class-action lawsuit settlement with Burwick Law exhausted the project’s remaining treasury. The ai16z token, launched on Solana in October 2024, had reached a market capitalization of approximately $2.5 billion in January 2025 before rebranding to ElizaOS following an objection from Andreessen Horowitz. The lawsuit alleged that the project misled token holders about its autonomous investment fund nature and diluted the token supply from 1.1 billion to 11 billion. Walters stated that ElizaOS development would continue without a native token.
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