Most gamers want companionship as they blast zombies or explore the outer realms of distant galaxies. When that friendship can’t come in human form, E-Pal is there to offer an artificial intelligence buddy. 

One of the leading so-called game-companion companies, E-Pal boasts 4.2 million users and is backed by venture capital firm a16z and Animoca Brands. The reality is that humans can only do so much, according to Lucas Zhang, a lifelong gamer and co-founder of E-Pal. Flesh and blood players still cannot fully address certain niche user-base demands and their scalability is limited. That’s why he saw AI agents as an opportunity to solve the issue of gaming companionship.

“Gaming thrives on interactivity and immersion, and with the rapid advancement of AI, I saw a future where gaming could become even more personalized, adaptive, and socially engaging,” Zhang said to me in an exclusive interview over email. 

“I was initially drawn to blockchain technology because of its decentralized nature, and quickly realized that beyond financial applications, blockchain had the power to redefine digital ownership and value distribution,” he said. “Web3 enables players to truly own their in-game assets and participate in decentralized economies, which led me to explore how gaming, blockchain, and AI could come together to shape the next generation of interactive entertainment. AI agents can offer round-the-clock, high-quality interactive services, presenting enormous potential for transformative change within the industry.”

Zhang and his team observed that many players wanted to find the right gaming companions to boost their enjoyment. Based on those needs, the team decided to evolve from E-Pal to Balance.Fun, a new web3 protocol that blends social and artificial intelligence (AI) agent gaming companions. Their aim is to build a more scalable, decentralized and user-driven entertainment ecosystem to meet broader player demands and provide more opportunities for value sharing between creators and users.

Zhang is also co-founder and chief executive officer of Balance.Fun, which features AI gaming companions called ePals, the little computer-based rascals that serve as intelligent gaming companions and social partners. ePals act as tools for education and productivity, such as in-game coaches. To date, ePals have provided users with personalized experiences clocking over 100,000 on-chain interactions since inception.

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In the first quarter of this year, Balance.Fun will release $EPT, a digital token meant to lay the foundation for a decentralized economy within the Balance.Fun ecosystem. 

Zhang said users can look forward to the following: The release of AI ePals creation tools that allow them to freely create and customize AI agents; the full opening of the Fans Protocol, which enables users to invest in and support their favorite ePals through fan tokens; and the enhancement of Key Node governance, allowing the community to truly participate in the future development of the Balance.Fun ecosystem.

“The launch of Balance.Fun marks the beginning of a new era in AI-powered web3 interactive entertainment,” Zhang said. “Users will be able to freely create, train, and deploy AI agents, giving each AI unique personalities, skills, and service capabilities.”

Zhang said some players, such as hardcore gamers, remain skeptical of AI agents, preferring human interactions over AI-driven companionship.

“Convincing the gaming community that AI enhances, rather than replaces, human interaction is still a key challenge,” he said. “Others are concerned that AI could affect game fairness, especially in competitive games, so how to enhance the player experience with AI agents, rather than replace human interaction, remains a direction that requires careful design.”

But Zhang believes the acceptance of AI agents is on the rise, as in areas such as personalized companionship, strategic support, and entertaining interactions—areas in which he said their value is increasingly being recognized. “With further technological breakthroughs, increased player education, and optimized applications, AI agents can truly transform the future of interactive gaming.”

lead image: Lucas Zhang