Researchers discovered a novel mechanism by which the early embryo turns off this virus on the X chromosome, which ultimately determines the sex of an organism.
If the level of this molecular marker is normal, X chromosomes remain active, and females and males will be born at an equal ratio.
If this marker is overrepresented, X chromosomes will be silenced, and males will be born twice as often as females.
"Aside from the embryo, the only other places people have found this virus active is in tumours and neurons," said Xiao.
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"Why mammalian sex ratios are determined by a remnant of ancient virus is a fascinating question," Xiao said.
Tens of millions of years ago viruses invaded genomes and duplicated themselves within the DNA of their hosts. Xiao estimated that more than 40 per cent of the human genome is made up of such remnants of viral duplications.
Researchers found that the virus active in the mouse genome that influences sex ratios is relatively recent - in evolutionary terms - and is enriched on the X chromosome.
The researchers found the mechanism that disables the virus. The newly discovered modification in mammals is a surprising expansion of the epigenetic toolbox, they said.
Epigenetics modulates gene expression during development without actually altering the sequences of genes.
In the new marker, a methyl bond is added to adenine - one of the four nucleotides that comprise base pairs in DNA - allowing it to silence genes.
Xiao said it is possible that this mechanism might be used to suppress cancer, which has been known to hijack the same virus to spread.
He also noted in other organisms, such as C elegans and the fruit fly Drosophila, this mechanism plays an entirely opposite role and activates genes, not suppresses them.
The study was published in the journal Nature.