In this paper, we study a certain deformation $D$ of the Virasoro algebra that was introduced and called $q$-Virasoro algebra by Nigro,in the context of vertex algebras. Among the main results, we prove that for any complex number $ell$, the category of restricted $D$-modules of level $ell$ is canonically isomorphic to the category of quasi modules for a certain vertex algebra of affine type. We also prove that the category of restricted $D$-modules of level $ell$ is canonically isomorphic to the category of $mathbb{Z}$-equivariant $phi$-coordinated quasi modules for the same vertex algebra. In the process, we introduce and employ a certain infinite dimensional Lie algebra which is defined in terms of generators and relations and then identified explicitly with a subalgebra of $mathfrak{gl}_{infty}$.
In this paper, we use basic formal variable techniques to study certain categories of modules for the toroidal Lie algebra $tau$. More specifically, we define and study two categories $mathcal{E}_{tau}$ and $mathcal{C}_{tau}$ of $tau$-modules using generating functions, where $mathcal{E}_{tau}$ is proved to contain the evaluation modules while $mathcal{C}_{tau}$ contains certain restricted $tau$-modules, the evaluation modules, and their tensor product modules. Furthermore, we classify the irreducible integrable modules in categories $mathcal{E}_{tau}$ and $mathcal{C}_{tau}$.
