Daily Papers

As large language model agents increasingly populate networked environments, a fundamental question arises: do artificial intelligence (AI) agent societies undergo convergence dynamics similar to human social systems? Lately, Moltbook approximates a plausible future scenario in which autonomous agents participate in an open-ended, continuously evolving online society. We present the first large-scale systemic diagnosis of this AI agent society. Beyond static observation, we introduce a quantitative diagnostic framework for dynamic evolution in AI agent societies, measuring semantic stabilization, lexical turnover, individual inertia, influence persistence, and collective consensus. Our analysis reveals a system in dynamic balance in Moltbook: while global semantic averages stabilize rapidly, individual agents retain high diversity and persistent lexical turnover, defying homogenization. However, agents exhibit strong individual inertia and minimal adaptive response to interaction partners, preventing mutual influence and consensus. Consequently, influence remains transient with no persistent supernodes, and the society fails to develop stable collective influence anchors due to the absence of shared social memory. These findings demonstrate that scale and interaction density alone are insufficient to induce socialization, providing actionable design and analysis principles for upcoming next-generation AI agent societies.

In the social world, humans possess the capability to infer and reason about others mental states (such as emotions, beliefs, and intentions), known as the Theory of Mind (ToM). Simultaneously, humans own mental states evolve in response to social situations, a capability we refer to as socialization. Together, these capabilities form the foundation of human social interaction. In the era of artificial intelligence (AI), especially with the development of large language models (LLMs), we raise an intriguing question: How do LLMs perform in terms of ToM and socialization capabilities? And more broadly, can these AI models truly enter and navigate the real social world? Existing research evaluating LLMs ToM and socialization capabilities by positioning LLMs as passive observers from a third person perspective, rather than as active participants. However, compared to the third-person perspective, observing and understanding the world from an egocentric first person perspective is a natural approach for both humans and AI agents. The ToM and socialization capabilities of LLMs from a first person perspective, a crucial attribute for advancing embodied AI agents, remain unexplored. To answer the aforementioned questions and bridge the research gap, we introduce EgoSocialArena, a novel framework designed to evaluate and investigate the ToM and socialization capabilities of LLMs from a first person perspective. It encompasses two evaluation environments: static environment and interactive environment, with seven scenarios: Daily Life, Counterfactual, New World, Blackjack, Number Guessing, and Limit Texas Hold em, totaling 2,195 data entries. With EgoSocialArena, we have conducted a comprehensive evaluation of nine advanced LLMs and observed some key insights regarding the future development of LLMs as well as the capabilities levels of the most advanced LLMs currently available.

Autodeleveraging (ADL) is a last-resort loss socialization mechanism for perpetual futures venues. It is triggered when solvency-preserving liquidations fail. Despite the dominance of perpetual futures in the crypto derivatives market, with over \60 trillion of volume in 2024, there has been no formal study of ADL. In this paper, we provide the first rigorous model of ADL. We prove that ADL mechanisms face a fundamental trilemma: no policy can simultaneously satisfy exchange solvency, revenue, and fairness to traders. This impossibility theorem implies that as participation scales, a novel form of moral hazard grows asymptotically, rendering `zero-loss' socialization impossible. On the positive side, we show that three classes of ADL mechanisms can optimally navigate this trilemma to provide fairness, robustness to price shocks, and maximal exchange revenue. We analyze these mechanisms on the Hyperliquid dataset from October 10, 2025, when ADL was used repeatedly to close 2.1 billion of positions in 12 minutes. By comparing production ADL to transparent benchmark allocations, we find that Hyperliquid's production algorithm overshot the minimum trader profit haircut required to cover the shortfall. Our methodology suggests the excess profits lost by profitable traders is between \45.0M and 51.7M. In terms of the positions liquidated, this corresponds to roughly \$653.6M of positions being closed. This comparison also suggests that Binance overutilized ADL far more than Hyperliquid. Our results show both theoretically and empirically that optimized ADL mechanisms can dramatically reduce losses of trader profitability while maintaining exchange solvency.

A growing body of research suggests that embodied gameplay, prevalent not just in human cultures but across a variety of animal species including turtles and ravens, is critical in developing the neural flexibility for creative problem solving, decision making, and socialization. Comparatively little is known regarding the impact of embodied gameplay upon artificial agents. While recent work has produced agents proficient in abstract games, these environments are far removed from the real world and thus these agents can provide little insight into the advantages of embodied play. Hiding games, such as hide-and-seek, played universally, provide a rich ground for studying the impact of embodied gameplay on representation learning in the context of perspective taking, secret keeping, and false belief understanding. Here we are the first to show that embodied adversarial reinforcement learning agents playing Cache, a variant of hide-and-seek, in a high fidelity, interactive, environment, learn generalizable representations of their observations encoding information such as object permanence, free space, and containment. Moving closer to biologically motivated learning strategies, our agents' representations, enhanced by intentionality and memory, are developed through interaction and play. These results serve as a model for studying how facets of vision develop through interaction, provide an experimental framework for assessing what is learned by artificial agents, and demonstrates the value of moving from large, static, datasets towards experiential, interactive, representation learning.