> For the complete documentation index, see [llms.txt](https://doc.capybobo.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doc.capybobo.io/3-protocol.md). # 3 Protocol The Capybobo protocol is an infrastructure layer designed for game developers and players. It aims to handle blockchain settlement, asset management, and AI character capabilities through unified interfaces, allowing developers to focus on making great games. Within this protocol framework, Capybobo 3.0 further develops generative interaction and character memory. These capabilities will first be validated in our own game and then gradually made available for integration into other games and scenarios. The protocol is built around payments, asset circulation, game data, generative interaction, character memory, and physical extensions. Generative storylines, interactive learning, and personalized memory are planned for Q1 2027, followed by expansion into AI interactive terminals and designer toys with personalized memories in Q2 2027. #### Payments On-chain cryptocurrency payments provide more flexible settlement, significantly increasing the share of revenue developers actually receive. #### Asset Minting and Liquidity Game assets are brought on-chain, and player top-up funds are paired with those assets to form on-chain liquidity pools. More revenue creates deeper liquidity and more stable asset pricing, providing a tangible value anchor for players' investment. #### Game Data and Risk Control Key game data suitable for public verification is recorded on-chain to support asset monitoring and process traceability, building trust among users and the community. Characters' personal memories are managed through a separate mechanism, allowing users to understand what is retained and how it is used. #### Generative Interaction Engine The engine dynamically generates storylines, quests, and feedback based on scenario rules, the fictional world, character profiles, and user behavior. Users drive changes through conversations, choices, and actions, while the system draws on relevant memories to maintain narrative continuity. In learning scenarios, the engine will adjust task difficulty and guidance according to learning goals and user performance, integrating practice naturally into the story. #### AI Soul Engine The AI Soul Engine gives each game character independent memory, an evolving personality, and learning capabilities, enabling a unique, two-way relationship with every player. Capybobo 3.0 uses memory to continue current tasks, retain important shared experiences, and understand users' interests and learning goals. Characters can remember unfinished stories, promises made to one another, and questions users want to explore further. While preserving a character's core identity and consistency within its fictional world, different memories will gradually shape different patterns of expression and companionship. Memory features will include options to view, correct, and delete information, allowing users to manage relevant content so that a character's understanding evolves alongside them. #### Physical Extensions Capybobo 3.0 plans to introduce global blind box releases and PBT verification in Q1 2027, followed by AI interactive terminals and designer toys with personalized memories in Q2. Linking character identities and synchronizing memories will allow users to encounter familiar characters through physical interactions and continue earlier stories and learning experiences. Toys of the same design can have an identical appearance, yet differ in the topics they know, the adventures they remember, and the habits they develop with users because they are associated with different memories. Each toy's unique "soul" comes from these accumulated memories and shared experiences. Once launched, physical products will provide developers with revenue opportunities beyond the game itself and give character IP more points of contact in everyday life. #### Developer SDK The developer SDK aims to provide a unified entry point to these capabilities, reducing the complexity of integrating blockchain and AI. The SDK will evolve alongside our own products, supporting partners in integrating scenario and character services.