Saga and what you should know about this protocol.
Saga is a Layer 1 Blockchain developed on Cosmos, Saga's main mechanism is POS (Proof-of-Stake) similar to ETH at the present time. Saga's main goal is to optimize resources for launching other Blockchains.
Saga is a blockchain used to launch other blockchains, in the Saga ecosystem these blockchains are called “Chainlets” . Chainlets are secured by Saga's validator through a mechanism called Interchain Security, a common security system from Cosmos.
Potential and risks of this project?
Potential:
Supports many different virtual machines: Saga Chainlet supports EVM and aims to support many different VMs such as CosmWasm, Javascript VM in the future.
Additional profits for validators: The Musical Chair Auction model ensures all validators in the ecosystem receive fair rewards, while also helping to determine the cost of operating Chainlet in a competitive and transparent manner.
Risk:
The Musical Chair Auction model is new and untested.
There are currently many projects implementing Parallel Execution on the market, notably Sei Network, Monad, NeonEVM, etc. These will be serious competitors to a project that has not been around for a long time, Saga.
Tokenomic:
SAGA tokens are allocated as follows:
Binance Launchpool: 4.5%
Ecosystem & Development: 30%
Airdrop: 15.5%
Selling to investment funds: 20%
Main Contributor: 20% Foundation
Reserve: 10%
Vesting Calendar:
At the time of listing, 9% of the total supply will be unlocked, of which 9% includes 2 categories: Binance LaunchPool and Airdrop.
From April 2025, will begin to linearly unlock 40% of the total supply for Investors and Core Contributors until April 2027
Foundation Reserve (10%) and Ecosystem & Development (30%) will be unlocked from release until April 2031.
Token Use Case
Notable uses of SAGA:
– Pay fees to validators to operate Chainlet
– Pay rewards to validators
– Staking: Staking helps secure the network and receives rewards of $SAGA tokens as well as tokens of projects built on Saga
– Governance: SAGA token holders will be able to vote on network governance decisions.
We can see that the initial 9% of $SAGA in circulation mostly came from Retailers receiving Airdrops and Farming Launchpools. It is more difficult for the price to be pushed up by the creation teams because it has to absorb large selling pressure from Airdrop and Launchpool.
Usecase Token creates demand when people who Stake $SAGA are ready to buy and Lock $SAGA to have a chance to receive Airdrop.
General assessment: Saga is a project that is determined to go a long way because investors and the Foundation can only unlock it 1 year after listing. Token Use Case is attractive to investors. The initial selling pressure will not be strong because the majority are small investors and can be gathered by Market Maker teams to support the price.
The best time to buy and hold for a long time, in my opinion, will be at the end of 2024, early 2025 in the condition that there is already a cumulative price base and the Tokens of investment funds are about to be unlocked.