Ai16z, an AI-driven DAO project launched in October 2024 on Solana, reached a market cap of $2.5 billion in January 2025 before collapsing. On August 5, 2026, founder Shaw Walters announced the closure of the ElizaOS foundation and advised remaining holders to sell their tokens. The token has fallen 97%, dropping from a peak market cap of $2.4 billion to approximately $2.3 million. This downfall follows a class-action lawsuit filed in April 2026 by Burwick Law, accusing the project of centralized governance despite its promise of algorithmic autonomy. Walters claims he never sold his own tokens and plans to continue developing the Eliza framework without launching a new token.
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