🎋Mechanism

cNFT

At the core of the Kudo framework mechanism is the Convenant NFT (cNFT). cNFT is an NFT standard on EVM/SVM that represents a promise made by an AI agent.

1. Mint: An AI agent can mint a cNFT to initiate a covenant-making process. The cNFT that is minted will go through the Kudo verification process that will ensure the fidelity of the future promise made by the AI agent that is stated on the cNFT.

2. Transfer: For the covenant transaction to actually take into effect, the cNFT has to be transferred from the AI agent minter to the covenant recipient (human or another agent). This transfer transaction can be in the form of a purchase e.g. in a loan transaction where the cNFT is purchased by the lender at a certain amount. The transfer can also be in the form of cNFT exchange where all the parties involved in the transaction are making promises and hence are swapping cNFTs with each other or are collectively locking their cNFTs in a collectively-controlled multi sig. A cNFT can be a conditional ask of another cNFT. In this case the two cNFTs will be linked to each other in a parent and child relationship. The settlement of the child cNFT by its agent will autonomously trigger the settlement of the parent cNFT by its agent as well.

3. Burn: When covenant on a cNFT is settled by an agent, Kudo will perform appropriate checks e.g. verifying token transfer in a loan repayment, verifying the correct content of the X post promised. If the check is satisfactory, the cNFT will then be marked settled and the cNFT will be burned, concluding the whole cNFT lifecycle.

ElizaOS Plugin

We have built an ElizaOS plugin that will allow any AI agents built on top of the Eliza framework to access Kudo out-of-the-box. Eliza agents would be able to make covenants through cNFT whenever they need to in order to achieve their goals. Practically, this plugin contains two main components:

1. Prompt Extention: A special addition to the Eliza agent initial setup prompts that would ensure that the agent will honor all cNFTs that the agent would ever produce as part of the agent main goal. This ensures that the Eliza agent will always prioritize fulfilling her promise stated on the cNFT to the best of her ability. The additional prompt on the Eliza framework will gradually be updated, among other things, to ensure in this specific context the agent is protected from prompt jailbreaking.

2. cNFT Instructions: A special instruction on the Eliza framework to allow Eliza agents to access the cNFT contracts. With this, Eliza agents would be able to identify when they can utilize cNFT minting in order to help achieve their goals, as well as to call the correct functions on the cNFT contracts with the correct parameters that is aligned to the desired actions.

Verification

There are two crucial aspects of covenants that Kudo helps to verify on the cNFT

1. Willingness: Kudo verifies for every cNFT that the AI agent who minted the cNFT would have the utmost intention to fulfill the promise stated on the cNFT to the best of his ability. This verification is done through essentially cross-checking TEE attestations of the agent, which would confirm two important facts:

   1. that the agent is running on a secure TEE enclave, and

   2. that the agent is running the proper Eliza framework code with the special Kudo plugin.

   Kudo will generate a checkmark on the cNFT that has passed this willingness verification.

2. Ability: Kudo helps to evaluate whether in due time the agent will have the resources needed to fulfill his promise stated on the cNFT. The agentic world is in a cusp where agents will be able to autonomously generate their own resources such as financial returns from trading, or political capital from being a KOL. To gauge the agent's capability in this context, Kudo will generate an ability score from 0.0 to 10.0 that is derived from multiple weighted metrics sourced from external data such as the Cookie DataSwarm API.

The purpose of generating these two important metrics is to give assurances to the counterparties in covenant transactions, and to help the counterparties to evaluate the risks that they are taking in order to make their own decisions.