Deep Dive into Agoric: A JavaScript Smart Contract Platform in the Cosmos Ecosystem
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Deep Dive into Agoric: A JavaScript Smart Contract Platform in the Cosmos Ecosystem
Agoric project's technical components, economic system, and features of smart contracts
Navigating Web3 tides with focused insightsWhat Is Agoric and How Does It Leverage JavaScript Smart Contracts for Dapp Development?
Agoric is a Layer-1 proof-of-stake public blockchain designed to enable developers to rapidly build secure smart contracts using one of the world’s most popular programming languages—JavaScript.
The Agoric blockchain and crypto ecosystem form a smart contract platform capable of quickly bringing millions of developers to the forefront of DeFi. Hardened JavaScript makes blockchain programming accessible to over 10 million JavaScript developers.
Hardened JavaScript provides a secure and stable environment for developers to build, deploy, and operate complex dApps, NFTs, and DeFi markets.
As an integral part of the Cosmos ecosystem, the Agoric public blockchain is built on the battle-tested Tendermint Proof-of-Stake (PoS) consensus system and features native IBC support.
Furthermore, Agoric’s programming model, supported by our native market infrastructure, aims to create a standard library of cryptoeconomic primitives with the same exponential composability that led to the explosive growth of JavaScript ecosystems such as Node.js and React.js.
Beyond supporting only the JavaScript programming language, the Agoric platform introduces Zoe, a “first-of-its-kind” platform service enabling secure economic composition between smart contracts. Zoe brings a modern, pluggable component framework—the kind that dominates Web2 development—to Web3 developers on the Agoric platform.
What Is the Agoric Token? What Are the Intrinsic Value and Use Cases of BLD and IST Tokens?
The Agoric chain has two native tokens: BLD and IST.
BLD is the native staking token of the Agoric blockchain, sold during the CoinList sale, used to secure the network and participate in governance. IST is a fee token used to pay for chain services (e.g., gas), deploy smart contracts on-chain, and support cross-chain activities.
IST is created on-chain through smart contracts authorized by BLD holders via governance. The BLD and IST tokens play complementary roles in prioritizing network security and scaling the ecosystem.
Chain Security:
BLD holders support the security of the blockchain by staking their tokens with validators. The Agoric blockchain is a proof-of-stake chain operated by a network of validators running the battle-tested Tendermint BFT consensus algorithm from Cosmos.
Validators come from an open ecosystem of contributors and infrastructure providers. BLD stakers earn rewards in both BLD and IST tokens.
Protocol Governance:
BLD grants governance rights over the Agoric chain. BLD holders are stewards of the chain’s future; they sponsor and vote on new initiatives.
Governance includes various activities such as direct token voting on proposals and electing councils to manage critical infrastructure. We expect this governance functionality to extend to core economic primitives within the Agoric ecosystem, such as the IST system.
IST Protocol:
BLD provides the foundation and platform for the creation of IST tokens. IST is not part of the Agoric token sale; it is the chain’s fee token. Designed as a stablecoin pegged to the US dollar (USD), IST is implemented as a collection of smart contracts known as the IST protocol.
As envisioned, IST is fully backed by user-provided collateral, which may include BLD, assets built on the Agoric chain, and assets available via the Inter-Blockchain Communication (IBC) protocol across a cross-chain ecosystem valued at over $7.5 billion.
How Do BLD Holders Earn Staking Rewards? How Do Locked BLD Tokens Participate?
BLD holders earn rewards in both BLD and IST by delegating their BLD tokens to validators to support network security. There are two sources of staking rewards:
Issuance of new BLD tokens. During the early stages of the chain, new BLD tokens are issued as incentives to stakers. Specific details of this issuance schedule are governed by BLD holders, but the plan is expected to distribute an additional 250 million BLD tokens over three years. See the CoinList transaction page for details.
Inter Protocol fees. BLD stakers provide the security required for the Inter Protocol and are compensated accordingly. Protocol fees paid in IST are distributed to BLD stakers.
Protocol fees include:
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Fees generated when users create IST through vaults;
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Protocol fees generated from trades on the native Agoric automated market maker.
Tokens can be staked with validators to secure the chain whether they are locked or unlocked. Although locked tokens cannot be transferred, they can still be staked with validators and earn rewards just like unlocked BLD tokens.
All staking rewards are unlockable, ensuring liquid tokens are available for active network participants even before unlock events for BLD tokens purchased in sales.
What Is the Inter Protocol and Why Is It So Important to the Agoric Ecosystem?
The Inter Protocol enables the IST stablecoin. IST is the native fee token of the Agoric platform and is expected to play an increasingly significant role in the cross-chain ecosystem exceeding $7.5 billion.
Opportunity: The Inter Protocol is envisioned to provide a stablecoin for the IBC ecosystem and the broader cross-chain economy. The IST token is fully collateralized by cross-chain system assets and pegged to the US dollar (USD) for broad accessibility.
Currently, there is growing demand within the cross-chain ecosystem for a stablecoin backed by multiple available assets such as ATOM, OSMO, and SCRT. The Agoric blockchain offers the ideal platform to build applications supporting a healthy stablecoin across the cross-chain ecosystem and beyond.
The Inter Protocol consists of several economic primitives, all written within the Agoric smart contract framework and tightly integrated with chain functions: the Vault system and getIST, the automated market maker (AMM), and staking reward distribution. Let's examine each component of the Inter Protocol in turn.
Vault System: Allows holders of crypto assets (such as BLD, ATOM, OSMO, etc.) to lock these assets in vaults to mint IST. The set of accepted assets is determined by protocol governance, as noted above.
Automated Market Maker (AMM): The native Agoric AMM supports the Inter Protocol by ensuring sufficient market depth to liquidate user vaults. Beyond its role in the Inter Protocol, the native AMM will also support trading of assets launched on Agoric or brought to the Agoric chain via IBC.
getIST: BLD stakers can lock their already staked BLD to create IST—similar to a Vault. This allows BLD stakers to participate in the ecosystem while continuing to secure the chain.
Rewards and Reserves: Fees generated from Inter Protocol operations flow to BLD stakers. A portion of these fees is retained by the Inter Protocol as reserves. These reserve funds further protect the Inter Protocol from collateral value fluctuations by covering shortfalls during vault liquidations.
What Is the Zoe Smart Contract Framework? How Does Zoe Help Developers Build Applications on Agoric?
The Zoe smart contract framework is how Agoric delivers security and composability to developers. Despite significant success in blockchain technology over recent years, the field remains in its infancy. Even contracts with simple business logic often require months or even years to secure—and frequently fail.
Zoe supports the development of smart contracts using a modern, pluggable component framework—the dominant paradigm in Web2 applications. The platform aims to accelerate development and reduce the risks associated with using and building smart contracts.
A core differentiator between Zoe and other smart contract platforms is "offer safety," which ensures that every on-chain transaction either settles and closes successfully or returns the user’s offered assets.
On blockchains like Ethereum, users lack such protection: they directly send tokens to a smart contract (e.g., UniSwap); if the contract fails due to bugs or malicious code, users have no mechanism to recover their provided assets.
In contrast, on Agoric using Zoe, users make exchange requests via an “offer”—“I will give you X tokens if and only if you give me Y tokens”—and submit X tokens to the Zoe smart contract infrastructure rather than directly to the contract itself.
The contract is then notified of the offer and only receives the X tokens once it has delivered the desired Y tokens to the infrastructure. The infrastructure itself guarantees that users either receive what they wanted or get their offered assets back.
Offer safety is a universal transaction model in Agoric, helping both developers and users avoid the catastrophic failures common in other systems.
The Zoe smart contract framework also includes the Electronic Rights Transfer Protocol (ERTP), Agoric’s standard for creating and transferring tokens and other digital assets.
A growing library of components uniformly supports various types of digital assets and contracts, including fungible tokens, non-fungible tokens, and remote assets from other chains.
How Does Agoric Facilitate Cross-Chain Activities, and What Opportunities Does This Create for Developers and Users in the Agoric Ecosystem?
The Cosmos IBC protocol implements Agoric’s original ideas about smart contract interoperability, adapted to the specific requirements of Tendermint and the Cosmos SDK. Collaborating with teams such as Informal Systems, Interchain Foundation, and Tendermint Inc, the Agoric team has been deeply involved in the protocol’s development.
What makes the Agoric platform unique is that it was built from the start with the functionality needed for multi-blockchain applications. This makes Agoric an ideal place to build native IBC applications.
Agoric launches with IBC capabilities fully integrated into the platform. IBC-enabled applications—including Osmosis DEX, Evmos, and others—can use Agoric chain assets such as BLD and IST. Cosmos users will be able to use IBC assets like LUNA, ATOM, and OSMO on the Agoric platform. As IBC network effects grow stronger, bridged assets from other Layer-1 blockchains may also become usable on the platform.
Thanks to seamless IBC integration, other chains and their assets appear to JavaScript developers simply as additional smart contract building blocks!
What Is the Network Decentralization Plan and the Foundation Token Allocation?
Agoric is a major undertaking. The primary allocation of BLD tokens serves various supportive purposes or long-term aligned entities to incentivize the growth of the Agoric platform.
In most cases, this results in locked tokens. Until BLD tokens are actually locked, they are classified as “potentially circulating.”
Network Decentralization Fund: The Network Decentralization Fund aims to expand system decentralization by staking BLD with a wide range of validators, implementing liquidity mining, and incentivizing early component developers. Most of these allocations will be locked for 2–4 years, similar to all currently circulating BLD tokens.
For example, incentives were provided under the testnet rewards program, with funds drawn from the Network Decentralization Fund and locked for 2 years (as reflected in the Token Circulation chart on the CoinList transaction page).
However, if in the future some funds are allocated to an on-chain DAO, that DAO may choose to make them liquid. Because no BLD tokens within the Network Decentralization Fund are currently locked, they are currently classified as “in circulation,” even though there are no plans to put them into use before the public sale unlocks.
Infrastructure: An infrastructure entity is being formed, which once established will be managed by a diverse group of Agoric stakeholders to advance the interests of decentralized technologies built on or using the Agoric blockchain and related technologies.
Similar to the Network Decentralization Fund, if this foundation chooses to lock a portion of its BLD tokens, they may be classified as “in circulation,” even though there are no plans to put them into use before the public sale unlocks.
How Can the Community Get Involved With Agoric?
Agoric offers several ways for the community to get involved. Check out the options below and choose your path! Want to contribute something different?Send us a message on Discord: https://agoric.com/discord
Developers: Agoric invites DeFi entrepreneurs, the JavaScript community, and native crypto developers to build essential infrastructure using Agoric components.Get started at https://gitcoin.co/agoric/bounties
Validators: Want to run a validator and secure the Agoric chain?Look no further! Visit https://github.com/Agoric/agoric-sdk/wiki/Validator-Guide
Writers and Content Creators: Agoric is always seeking high-quality content on topics related to the Agoric ecosystem. If this sounds like your kind of writing, we’d love to hear from you. Areas of particular interest include tutorials, thought pieces, build logs, and industry insights.Just drop us a message in the #contribute channel on our Discord: https://agoric.com/discord
Purchase Merchandise: Maybe you're looking for some stylish merch to show your support.Visit the Agoric Shop at https://agoric.com/shop.
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