What is Saga?
Saga Protocol is a project that provides blockchain building services for applications. Or in other words, Saga is a blockchain network used to launch other blockchains, called “Chainlets” in the Saga ecosystem. Chainlets are secured by Saga's validator through a mechanism called Interchain Security, a common security system from Cosmos.
Interchain Security means a blockchain that acts as a security provider for other blockchains, in this case Chainlet. Therefore, Chainlets inherit the benefits of running a Cosmos SDK application but use Saga's validator for block validation.
SAGA products
Chainlet
VM-compatible blockchain building solution
Saga introduces an easy, decentralized, and secure application-specific blockchain implementation solution. The solution also gives developers autonomy in choosing their preferred virtual machine (VM), with initial support for Ethereum Virtual Machine (EVM).
In the long term, Chainlet aims to become VM agnostic, which means developers will have the flexibility to choose from a variety of virtual machines, including: EVM, CosmWasm or Javascript VM.
Chainlet Features
Infinite Scalability: All Chainlets are appchain instances running in parallel, allowing applications to scale flexibly for high performance and speed.
Free transactions and low Chainlet maintenance fees: Developers can choose any model they like: own token, no token or use another ecosystem's token. Chainlet maintenance fees are set through the Musical Chair Auction model.
Automation: Developers can set up a Chainlet with just one mouse click through Saga WebApp.
Interoperability and rapid migration: Users can freely move assets between Chainlets, between Saga and other ecosystems using auto-interoperability and asynchronous composability .
Fully flexible toolkit: Developers can customize their Chainlets as desired.
Chainlet launch process
In contrast to Cosmos Hub, launching Chainlet on Saga is completely license-free. Developers only need to own SAGA tokens to pay for setting up and maintaining their Chainlet. This is similar to the services offered by Amazon Web Services and other SaaS platforms, except that the subscription fee here is paid in SAGA tokens to create and maintain the Chainlet.
This means that once the fees are paid, the validator's role is to set up and run the infrastructure for the Chainlet, similar to how validators on Cosmos Hub operate the infrastructure of the app chains.
To launch Chainlet, developers are required to allocate funds to an escrow account using SAGA tokens. This escrow account can be pre-funded with any desired amount and acts as a prepaid service to cover costs associated with Chainlet. If the fees have been paid in full, Chainlet will be offline until the developer deposits more SAGA into the account. Fees are determined per epoch, where an epoch lasts approximately one day.
There are different methods to fund your margin account with SAGA tokens:
Fund account directly with SAGA tokenStake SAGA to escrow account to pay fees through staking rewardsAllow sponsors, community and DAO to pay fees
The registration fee to run Chainlet is determined by the validator. Before starting a new epoch, lasting about a day. Each validator will submit a proposal for the fee they want to receive for running the Chainlet. These proposals are then locked and selected through a bidding model called “Musical Chair Auction”.
Musical Chair Auction – Model for determining Chainlet operating costs
Musical Chair Auction is a process to establish a common price for Chainlet operations. In this auction, each validator makes their bid and only a group of validators with the lowest bid, called the “Winning Set”, are selected to operate the Chainlet. The remaining validators with higher bids are called “Losing Set”.
The final cost to operate a Chainlet is determined by the highest bid in the Winning Set. This implies that the validator with the highest bid in the Winning Set will receive their desired price, while the other validators in the Winning Set not only secure their desired price but also receive an additional profit based on their bid.
Therefore, the price developers pay validators to operate a Chainlet is determined by the highest bid in the Winning Set, plus an additional profit. This profit ensures that all validators in the Winning Set receive a fair reward for the service they provide to developers to operate the Chainlet.
However, Musical Chair Auction also comes with risks for validators. This mechanism is designed to incentivize validators to offer the lowest possible bid, rewarding validators in Winning Sets and penalizing validators in Losing Sets.
Saga Realms
Saga Realms is a tool that allows developers to launch custom blockchains on Saga with different features and services such as.
Saga Origins
Saga Origins is a game publisher built by the Saga project. Saga Origins is committed to providing a full service and collaborative approach to bringing titles to the global mass market.
Saga's operating model
Saga will be operated thanks to 3 components:
Security Chain
Platform Chain
Chainlet
Security Chain
Security Chain is the first layer of security for the Saga protocol, this is where SAGA tokens are staked. Saga's Security Chain is built on the Cosmos-SDK platform.
Platform Chain
Platform Chain is where developers launch and maintain their Chainlets. Platform Chain will aggregate security from many different Security Chains and forward it to launched Chainlets.
Chainlet
Chainlet is where user transactions are processed. If Chainlets are found to be fraudulent, the tokens staked to operate the Chainlets will be confiscated. Chainlets will be built on the Cosmos-SDK, Avalanche Subnets and Polygon Supernets platform.
Tokenomics of SAGA
Saga and Chainlet introduce a new token structure with transaction fees to be paid by end users to Chainlet developers; Developers will then pay gas fees to Saga Mainnet. This gives a high degree of flexibility to Chainlet and its development team in determining how end-user transaction fee funds are used. In a Chainlet, gas fees can be paid with SAGA tokens or other tokens such as ETH or USDC.
Token information
Token Allocation
Binance Launchpool: 4,5%
Project and ecosystem development: 30%
Airdrops: 15.5%
Reserve fund: 10%
Key contributing members: 20%
Investors: 20%
Token Release Schedule
What is SAGA token used for?
Paying Chainlet maintenance costs: Developers use SAGA tokens to pay validators to initiate and maintain Chainlet operations.
Staking: Users who stake to help secure the network will receive rewards in the form of SAGA tokens and tokens of projects built on the Saga protocol.
Governance: SAGA token holders can vote on governance proposals.
Launchpool information
Binance users can lock BNB, FDUSD to farm SAGA starting from 07:00 AM on April 5, 2024 (VN time) and ending in 4 days. Binance will then list SAGA at 9:00 p.m. on April 9 (Vietnam time).
Specifications of Launchpool SAGA are as follows:
Token Name: Saga (SAGA)
Total Token Supply: 1,000,000,000 SAGA
Launchpool Token Reward: 45,000,000 SAGA (4.5% of total supply)
Initial total circulating supply: 90,000,000 SAGA (9% of total supply)
Stake conditions: KYC required
Maximum Limits Per User:
37,500 SAGA in BNB pool
9,375 SAGA in FDUSD pool
Supported pools:
Stake BNB (site will be available in about 4 hours): 36,000,000 SAGA (80%)
Stake FDUSD (site will be available in about 4 hours): 9,000,000 SAGA (20%)
Binance announcement details: Introducing Saga (SAGA) on Binance Launchpool! Farm SAGA by Staking BNB and FDUSD | Binance Support
