What is Agoric?
Agoric is a smart contract platform built on the Cosmos SDK that uses Tendermint Proof-of-Stake (PoS) and a native token to secure the network.
The Agoric chain has three tightly-coupled systems: The DApp Economy is where value creation occurs. Market participants transact with each other, have the ability to create digital assets (fungible and non-fungible), build new Defi protocols, and connect DeFi components. The Run Protocol mints RUN, the local stable currency. All protocol fees, including execution (gas) fees, are paid in RUN. RUN provides users with a medium of exchange, unit of account, and store of value. The Staking Economy is where BLD holders stake their tokens with validators to ensure the Agoric chain’s security and ongoing operation.
Each transaction that occurs on the Agoric blockchain must be executed and confirmed by the set of independent validators. Stakers delegate their BLD to validators to incentivize correct execution. Staking tokens give validators the right to participate in the network by validating transactions, and participate in chain governance. Stakers earn rewards for securing the network. Misbehaving validators have their stakes slashed.