What is Saga?Founded by Rebecca Liao, Saga was launched to revolutionize the way blockchains are deployed, fostering a vibrant ecosystem of applications and developers. Liao describes Saga as a “Layer 1 to launch L1s,” highlighting its unique approach to scaling and interoperability. Since its inception, Saga has attracted numerous partners, particularly in the gaming sector, with over 500 live projects right now and a capacity to help run 1000 chains concurrently.
How Saga Works?Saga operates as a modular platform that simplifies the deployment and management of application-specific chainlets (blockchains). By automating infrastructure and security processes, Saga allows developers to focus on innovation rather than technical complexities.
Chainlets: Developers create dedicated blockchains that operate independently to provide scalable and customizable solutions for decentralized applications.Horizontal Scalability: Saga’s architecture supports infinite horizontal scalability, allowing applications to handle increased demand without compromising performance.Shared Security: Through Cross Chain Validation (CCV), Saga provides shared security across chainlets, leveraging the security of the Saga Mainnet.Decentralized Validators: External validators run chainlets, enhancing network security through a decentralized validator set.Automated Deployment: Saga automates the deployment and management of chainlets, simplifying the process for developers to integrate into the platform’s infrastructure.Seamless Liquidity Access: The Liquidity Integration Layer (LIL) facilitates automatic composability and liquidity access across chainlets and external ecosystems.
What are Chainlets?Chainlets are a fundamental innovation of the Saga Protocol, designed specifically to make the life of developers easier. The team explains the process as being “as easy as deploying a smart contract”. Chainlet creation is powered by SagaOS, a Web3 application development stack known for its high performance, cost-effective transactions, and user-centric features.
Each chainlet operates as an independent blockchain, providing developers with the flexibility to customize and scale their decentralized applications without the limitations of shared blockspace. By using chainlets, developers can achieve horizontal scalability, enabling their applications to handle increased user demand without sacrificing performance or security.
For context, an example of vertical scalability are Ethereum Layer 2s, where the scaling part is handled on the lower levels (layers) of the blockchain, such as L2s like Arbitrum and Optimism. Chainlets, on the other hand, are horizontal, self-sufficient networks that stand side-by-side with Saga and other L1s, while also helping to expand crypto beyond its current possibilities.
What is SAGA Token?The SAGA token is a native cryptocurrency used in the Saga Protocol for decentralized applications and chainlets. It enables developers to pay for computing power, allowing flexible monetization and security. It improves the ecosystem’s security when it’s staked. The token model supports monetization strategies, network security, and automatic subscription payment.
SAGA’s tokenomics are detailed as follows:
Core Contributors (20%): Allocated to the original team members who have worked and will continue to work to bring Saga to life, with tokens subject to a 3-year lockup and a 1-year cliff starting at the Token Generation Event (TGE).Fundraising (20%): Reserved for investors who align with Saga’s vision, with 10% already allocated and the remaining 10% for future fundraising. These tokens also have a 3-year lockup and a 1-year cliff from TGE.Ecosystem and Development (30%): Dedicated to expanding the Saga ecosystem post-launch, these tokens will fund communities and developers that enhance the Saga experience.Foundation Reserve (10%): Held for the foundation’s use in cases beyond fundraising, development, and ecosystem growth.Airdrops (20%): Distributed to builders, stakers, holders, and users who contribute positively to the Saga ecosystem, with allocations spread over multiple stages.
SAGA AirdropsPreparations for Saga 3-stage airdrop campaigns began in Q3 2023 with the idea of a 6%/4%/10% split across different phases. So far in 2024, SAGA has conducted a total of 5 airdrops:
Community Genesis Airdrop: 60 million tokens distributed between 200,000 wallets from Cosmos (100,000), Celestia (27,000), Avalanche (26,000), Polygon (26,000), and Solana (21,000).Binance Launchpool: 45 million tokens were awarded to 500,000 users who staked SAGA and FDUSD worth $13.4 billion during the record-breaking 51st Binance Launchpool.Power-Level Over 9,000 Vault 1: 3 million SAGA tokens out of the 30 million unclaimed in GenesisVault 2: another 3 million SAGA tokens, plus airdrops from partnersVault 3: 2 million SAGA, leaving over 120 million SAGA for future rewards.
Unclaimed airdrops from these campaigns (like the 30 million from Genesis) were stashed and rolled up for future incentives. One of the main purposes of the “Over 9,000” system was to redistribute these tokens in addition to airdrops from Saga partners. All of SAGA’s airdrops aren’t available in the United States.
What is Pegasus?Pegasus is a critical component of the Saga Protocol designed to amplify the shared security deployment of chainlets. It introduces advanced safeguarding measures including:
Decentralized Validator Set: Pegasus enables external validators to run chainlets, decentralizing the network and enhancing security.Security Chain: Utilizes a dedicated security chain for minting and staking $SAGA, with slashing mechanisms to penalize validator misbehavior.Platform Chain: Manages the launch and maintenance of chainlets, aggregating security from multiple sources for enhanced protection.Progressive Launch Phases: Follows a structured rollout in six phases, ensuring smooth deployment and gradual decentralization of validator operations.Staking and Rewards: Allows stakers to earn rewards (~10% APY) while contributing to the network’s security. To interact users need a Cosmos SDK-compatible wallet like Keplr.Validator Onboarding: Simplifies the onboarding process for validators, allowing them to progressively manage multiple chainlets and infrastructure components.
What is Saga Liquidity Integration Layer?The Saga Liquidity Integration Layer (LIL) addresses liquidity fragmentation in a multi-chain environment by providing automatic composability and seamless integration of resources. It enables developers to access liquidity across different chainlets and ecosystems without manual intervention.
Automatic Bridges: Establishes protocol-native bridges that automatically connect each chainlet within the network, simplifying liquidity access.Canonical Routing via LIL Chainlet: Utilizes a centralized router to streamline liquidity routes between chainlets and external ecosystems, optimizing network topology.Automatic Packet Forwarding: Enhances user experience by automating multi-hop bridge transactions, eliminating the need for manual transaction management.Cross-Chain Execution: Allows smart contracts to be executed across any chainlet, enabling automatic access to dApps on other chains.Free and Gasless Transactions: Offers gasless and cost-free interactions within the Saga ecosystem, improving the user experience for developers and end-users.Unified API and UX: Provides a simple and unified API for developers to interact with liquidity across the network.
Bottom LineSaga is an outstanding crypto project with a unique horizontal scaling solution, establishing it as a go-to chain for developers, gamers, and airdrop enthusiasts. With the introduction of the Pegasus and Liquidity Integration Layer protocols, Saga is moving closer to realizing its grand vision of becoming the center for Web3 gaming.
What truly caught our eye was the excellence of the team. Whether it’s an interview with co-founder Rebecca Liao, who demonstrates a deep understanding of the current dynamics in crypto gaming and decentralization, or an ultra-detailed article on Medium, Saga showcases strong leadership and expertise.
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This article is reprinted from [Datawallet]. All copyrights belong to the original author [Jed Barker、Editor-in-Chief]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.