Future SAGA Token

The Future SAGA token is built on the concept of generalized mining of native cryptographic tokens and their distribution to network participants in exchange for active involvement in the operation and advancement of the network.

The issuance of SAGA's native utility tokens will be tied to the amount of computational work conducted within the network, following principles of generalized mining and the quantity theory of money. The total token supply in the global decentralized computing economy will be supported by the volume of useful computational work and transactions performed within the network at any given time, forming the fundamental basis for their sustainable value.

Generalized mining, also known as Mining 2.0, involves third-party provision of supply-side and other services to the market in exchange for compensation in the network's native currency. Unlike traditional distributed ledger technologies such as Bitcoin and Ethereum, token mining in the SAGA framework does not rely on a single distributed algorithm nor require global eventual consistency. Instead, local consistency within each computational workflow is essential, with global consistency not being necessary nor desirable. SAGA ensures the required local consistency through a set of smart contracts governing the construction, execution, and dissolution of computational workflows, as well as settling involved transactions.

SAGA's internal tokenomic mechanism may incorporate the following elements:

1. Measurement of computing work: A chosen metric of computing work consistently used by all compute providers registered in the network. This information, supported by the Telemetry API, will quantify computational work involved in specific workflows and compute providers' capacities.

2. Smart contracts: Implemented on all enabled blockchains, these contracts facilitate negotiation, locking, and settlement of transactions related to computational workflows between ecosystem components.

3. Proof-of-receipt algorithm: Instructs smart contracts to release reserved and approved funds only after valid results of subscribed computational processes are received and validated.

4. Reputation system: Provides a basis for informal verification, validation, and trust of supply-side service providers. The framework will encourage the implementation of competing reputation systems by network operations agents.

5. Payment logic: Involves a significant portion of computational workflows initiated within SAGA, with interoperability among decentralized computing frameworks. This logic ensures precise matching of unique transaction nature through unified mechanisms.

6. Generalized mining logic: Involves mining new tokens for each unit of computing performed by validated computational processes, with adaptive mining reward rates to balance supply and demand within the ecosystem.

SAGA's internal tokenomics are designed to facilitate stable network growth by balancing supply-side incentives, token inflation, and demand for decentralized computing resources. The mechanism allows for context-dependent adaptation and evolution facilitated by SAGA's governance and management framework.