Partnership Models

Saga’s unique and flexible product design enables partnership models with other ecosystems that allow for accrual of value to these ecosystems’ tokens and communities even when Saga serves as the base chain.

First, Saga could partner with various other layer one blockchain ecosystems to offer horizontal scalability solutions while keeping the economics of the respective tokens intact.

Imagine a scenario where a partner network is expecting a smart contract that will generate too much traffic in the partner network’s mainnet. To prevent their blockspace from being too congested, the partner network could deploy the smart contract on Saga instead. The partner network can post the Chainlet provisioning fee in Saga tokens to get the smart contract provisioned.

The Chainlet can be configured to demand end users to pay fees in the partner network tokens. This way, the end user’s interaction flow is identical to the case in which the smart contract is deployed on the partner mainnet. The fees paid by the end users follow our front-end token model and get distributed to an account owned by the partner network. A portion of these fees can be converted to Saga tokens to pay for the Chainlet subscription. The remaining balance can be configured to be distributed back to the partner’s validators and stakers in the same method as smart contracts deployed on the partner’s mainnet.

Saga’s token mechanism allows for accumulated transaction fees (net of Saga Chainlet fees) to accrue value to partner stakeholders. The partner also keeps their developer and end user pipeline, maintaining brand loyalty while scaling through Saga.

A second method of partnership is a revenue share between the Saga Mainnet and technology teams across the ecosystem. This structure covers cases in which developers are coming directly to Saga to build their applications. Saga is meant to be a VM agnostic chain, and numerous VM options will be available to developers who come to Saga looking for an environment to build their application in. Therefore, Saga will want strong technology partners to support and develop VM technologies on Saga. Saga can always use its Protocol Controlled Reserve to pay and incentivize these developers to continue to maintain and support their respective VM options for Saga.

More specifically, the developer chooses a VM environment and deploys a smart contract on Saga. They then post the fee deposit that is needed to provision and maintain the Chainlet. Saga will provision a Chainlet for the developer that uses the native token of the VM for transaction fees.

When an end user uses the application, they call the smart contract directly on the Chainlet and pay transaction fees in the native token of the VM. These fees accumulate in a wallet controlled by the developer. The developer can convert part of the fees to pay for the required bond needed to provision the Chainlet or however they see fit. Saga can also take a portion of the fees and send them to the network affiliated with the VM technology partner as a revenue share, incentivizing value accrual for the partners’ tokens.

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