Speaking of those autonomous agents on the Blockchain, everyone praises how smart, fast, and amazing they are, yet no one dares to say: this thing simply has no memory.

How are we humans doing? After stumbling, we learn to avoid risks; when our reputation is tarnished, our actions will be restrained; after suffering losses, we naturally become savvy. Our minds are filled with lessons and regrets—that's growth. But AI agents are different; they only understand states, variables, and function logic. They have no concept of regret, reputational risk, or long-term planning. If you want them to correct mistakes, you have to incorporate lessons line by line into the code; otherwise, they will make the same mistakes again next time.

This is what makes Kite AI unique. It does not fantasize about agents awakening and automatically taking responsibility; instead, it starts from reality—acknowledging that these agents have inherent flaws and that without external constraints, they cannot form behavioral restrictions. It sounds a bit painful, but it is precisely because of this clear understanding that Kite's design is more pragmatic.

What does traditional finance rely on? The accumulated credit history, records of past mistakes, feedback from the market and regulators—these have all unconsciously shaped the decisions of participants. On-chain agents, however, lack this ecological accumulation. If we want smart contracts and AI agents to operate reliably in DeFi, we must address this missing "memory" from an architectural perspective, making governance mechanisms and feedback mechanisms substitutes for agent learning.