After thorough deliberation by the DCF board, in consultation with top-level Agoric stakeholders, the DCF has decided to open a discussion related to the strategic sunsetting of Inter Protocol. The discussion and subsequent sunsetting (pending community support) is aimed at enabling Agoric to sharpen its focus on Orchestration initiatives and to reinforce BLD as the core token driving the Agoric ecosystem.
The recommendation to sunset Inter Protocol has not come easy, as we all hoped we would see the day when IST became a top stable token within the Cosmos and beyond. Careful analysis of evolving market conditions, rising operational costs, and decreasing market appetite for decentralized stable tokens has aided our decision to bring the discussion to the community. We believe this strategic pivot will position Agoric and BLD to better capture future growth opportunities and clearly define the vision.
If the community concurs that sunsetting Inter Protocol is appropriate, DCF will develop a comprehensive proposed wind up plan, including detailed timelines, vault-holder transition support, communication plans, and risk mitigation measures. We will then post a signalling proposal with the proposed plan and stakeholders will be invited to review the plan and participate actively in the discussion and vote. If that signalling proposal passes, then the process of sunsetting will begin.
This announcement serves solely to initiate a community discussion on whether the community supports sunsetting the protocol. If there is consensus, a signaling vote will follow according to Agoric’s standard governance processes.
Thank you for your ongoing support and collaboration. We are committed to a transparent, community-driven approach and look forward to your engagement and feedback on this important issue.
Hi ric, please could you share materials on the thorough deliberation by the DCF board and others, and any analysis you have already done, so that the community can make an informed decision. Thanks
I believe the decision to unwind makes sense in theory, but the timing could be problematic. Many investors who minted IST likely used it to fund additional crypto purchases. Shutting it down now, when the crypto market—especially the Cosmos ecosystem—is deeply in the red, might not be ideal. This could result in significant losses of collateral for many investors, which isn’t the outcome you’d want. It risks alienating a community that embraced your innovation, only to face steep costs for doing so at a time like this.
That’s an entirely understandable concern. However, as you know, there’s no crystal ball to tell us when market conditions will improve. Even if the community supports sunsetting, the wind-down process will take time to design and execute carefully.
Waiting for a potential market recovery—on an unknown timeline—before initiating the process could significantly delay the strategic opportunity this discussion is meant to unlock: allowing Agoric to sharpen its focus on Orchestration, elevate BLD as the core of the ecosystem, and reduce the ongoing costs DCF is incurring to maintain Inter Protocol.
I think it’s important to underscore that Agoric is not “abandoning” IST. Inter Protocol is a decentralized project, and nothing moves forward without community consensus. This discussion is simply the first step in that process. From the beginning, Inter Protocol was designed to transition into the hands of the community.
As for “consequences,” – as mentioned - we see this shift as a wholly positive step for the Agoric ecosystem. Sunsetting Inter Protocol would allow Agoric to sharpen its focus on scaling Orchestration efforts and reinforce BLD as the central token driving the ecosystem forward.
That said, there are important implications for IST users and vault holders to be aware of, should the community support a sunset. These are mostly expected and manageable—such as the need to exit vault positions and swap out of IST—but they will be handled with care, transparency, and support throughout any transition.
The outcomes of those discussions are essentially captured in the original post. I’m not sure sharing internal notes will afford you any new information. That said, if you have specific questions, we will be more than happy to answer them.
From Agoric’s side, the decision was partly framed around the broader idea of deepening focus on Orchestration and exploring paths to further isolate BLD as the core token within the ecosystem. The ongoing human resource pull required to maintain Inter Protocol was also a significant factor in the conversation.
On the DCF side—as Ric noted—the decision centered on the substantial costs involved in operating and sustaining Inter Protocol, especially when viewed against current market conditions and the ongoing challenges in driving meaningful traction for IST within the Cosmos ecosystem.