Saga

SAGA is the utility token used within the Saga protocol to facilitate its internal operations.

Key functions of the SAGA token include:

• Provisioning Chainlets: Developers use SAGA to subscribe to and maintain Chainlet infrastructure. The token acts as a prepaid balance for compute capacity.

• Staking: Validators stake SAGA to secure the network and are subject to slashing for violations.

• Validator incentives: SAGA is used to compensate validators for running Chainlets and maintaining protocol infrastructure.

• Developer bonding: Developers may bond SAGA tokens to guarantee uptime and usage of Chainlets.

Saga employs a two-part token flow:

• Front-end, between application users and developers, where developers may collect fees in various assets.

• Back-end, between developers and the protocol, where fees are settled in SAGA to access protocol-level infrastructure.

SAGA is not directly used by end users of dApps; instead, developers absorb or abstract these infrastructure costs.