One of the great advantages of traditional Web 2 development is the ease with which developers are able to “plug and play” the infrastructure necessary to power their applications. Within the Web 3 framework, this is hindered by a certain level of complication with protocol-specific languages and the lack of composable ‘pieces’ that can be used to build different applications.
The Agoric team was founded in 2018 by Mark S. Miller (Google) and Dean Tribble (Microsoft). Agoric quickly garnered director level support from the likes of the Electric Coin Company’s Zooko Wilcox. Initial funding for the project came from behemoths such as Outlier Ventures, Lemnis Capital, gumi Capital and others.
The second defining feature of Agoric is the construction of a deflationary ‘local’ currency pair economy comprised of:
The way that CEO Dean Tribble wants us to see the Agoric economy is similar to visiting a foreign country - you’ll need to trade into the local economy to use a local currency. Since the local currency is stable through a USD peg, you don’t need to worry about the fluctuating cost of gas seen in other protocol economies. RUN is usable in exchanges outside of Agoric based on its collateralization in the form of BLD in vaults on the Agoric network.
Capital holders of BLD can delegate their tokens to validator pools and take part in governance, either by backing a validator through the contribution of their BLD to a staking pool, or by applying to become a validator themselves. BLD holdings by validators helps weight governance decisions, and validators are rewarded for good governance in the form of RUN. The stablecoin rewards can in turn be used to purchase more BLD.
As with most protocols, validators who participate in double-signing or equivocation will have their staking pools slashed, with repeat offences resulting in the removal of a validator. Unavailable validators will also be removed from the validator set if they continue to be unavailable for a governance-determined percentage of clocks within a sliding window.
Agoric is currently in a bootstrapping stage, with mainnet slated for launch mid-July. Upon launch of mainnet, developers using the platform will be allocated BLD for their efforts on the network. This will provide an incentive for developers to learn how Agoric is built and take part in the initial stages of the economy.
Agoric will be connected at launch to all Cosmos-connected networks via IBC.
Agoric aims to have a thriving ecosystem of DeFi components available, all built on a web-common language, so that the protocol is easy to enter and scale. In due course, the protocol will expand as incoming users build on the work of previous developers. Agoric’s relationship with the Cosmos network will help the protocol’s internal economy grow as other projects enter the Agoric ecosystem to meet all their DeFi needs.