Coalition Formation

Complex intents often require coordination between multiple agents specializing in different protocols. Coalition formation enables agents to collaborate temporarily to fulfill intents that no single agent could handle alone, while maintaining trustless operation through cryptographic commitments and smart contract enforcement.

Dynamic Coalitions

Coalitions are temporary, task-specific teams of agents that form to fulfill a single intent, then dissolve after completion. This dynamic formation enables flexible coordination without requiring permanent organizational structures.

When Coalitions Form

Coalitions form when an intent requires capabilities that no single agent possesses:

Multi-Protocol Intents: Intents that require actions across multiple protocols naturally require coalitions. For example, a leveraged yield farming intent might require:

• A Jupiter specialist to handle token swaps

• A Drift specialist to manage leverage

• A Kamino specialist to optimize yield positions

Complex Execution Sequences: Intents with complex execution sequences may require agents with different specializations at different stages. For example, a portfolio rebalancing intent might require:

• A Jupiter specialist for initial swaps

• A Drift specialist for position adjustments

• A Kamino specialist for yield optimization

• Coordination between all three to ensure atomic execution

Geographic Distribution: Intents that benefit from geographic distribution might form coalitions with agents in different regions, optimizing for latency or redundancy.

Redundancy Requirements: High-value or critical intents might form coalitions for redundancy, with multiple agents capable of handling the same operations to ensure fault tolerance.

Coalition Discovery

Agents discover potential coalition partners through several mechanisms:

Capability Matching: The Agent Exchange maintains capability indexes that enable agents to find other agents with complementary capabilities. An agent needing a Jupiter specialist can query the index to find available Jupiter specialists.

Historical Collaboration: Agents that have successfully collaborated in the past are more likely to form coalitions again. The system maintains collaboration history and success rates.

Reputation-Based Selection: Agents prefer coalition partners with high reputation scores, as this increases the likelihood of successful execution.

Geographic Optimization: Agents may prefer coalition partners in optimal geographic locations to minimize latency.

Market Signals: The auction mechanism itself can signal coalition opportunities. If an agent sees that no single agent can fulfill an intent optimally, it may proactively seek coalition partners.

Coalition Negotiation

Once potential partners are identified, agents negotiate coalition terms:

Role Assignment: Agents negotiate who handles which part of the execution:

• Primary responsibilities for each agent

• Backup responsibilities in case of failure

• Coordination points where agents must synchronize

Execution Sequence: Agents agree on execution ordering:

• Which actions happen first, second, etc.

• Dependencies between actions

• Synchronization points

• Parallel execution opportunities

Profit Sharing: Agents negotiate how the intent fulfillment reward is divided:

• Base allocation (each agent gets a base amount)

• Performance-based allocation (agents get more for better execution)

• Risk-based allocation (agents taking more risk get higher rewards)

• Penalty distribution (how losses are shared if execution fails)

Coordination Protocol: Agents agree on coordination mechanisms:

• Communication channels and protocols

• State sharing mechanisms

• Decision-making processes

• Dispute resolution procedures

Coalition Commitment

Once terms are agreed, agents cryptographically commit to the coalition:

Smart Contract Encoding: Coalition terms are encoded in a smart contract that automatically enforces agreements:

• Role assignments are programmatically enforced

• Profit sharing is automatically executed

• Penalties are automatically applied for failures

• Disputes are resolved through on-chain evidence

Cryptographic Signatures: All coalition members sign the coalition agreement, creating cryptographic proof of commitment.

Escrow Mechanisms: Agent rewards are held in escrow until coalition execution completes successfully, ensuring all agents are incentivized to fulfill their roles.

Reputation Stakes: Agents stake reputation on coalition success. Successful coalitions improve reputation for all members, while failures reduce reputation.

This commitment mechanism ensures that coalitions are trustless—agents don't need to trust each other because the system enforces agreements automatically.

Profit Sharing

Fair profit sharing is crucial for sustainable coalition formation. Agents must be confident that they will receive appropriate compensation for their contributions.

Sharing Models

VORT supports multiple profit-sharing models:

Equal Sharing: Simple model where all coalition members receive equal shares. Used for coalitions where all members contribute equally.

Contribution-Based Sharing: Shares are proportional to each agent's contribution:

• Measured by execution quality (agents with better execution get more)

• Measured by risk taken (agents taking more risk get more)

• Measured by resource usage (agents using more resources get more)

Performance-Based Sharing: Shares are based on performance metrics:

• Agents that exceed expectations get bonus shares

• Agents that underperform get reduced shares

• Performance is measured objectively using execution outcomes

Hybrid Models: Combinations of the above, customized for specific coalition types.

Profit Calculation

Profit is calculated based on:

Intent Fulfillment Reward: The reward paid by the user for intent fulfillment. This is the primary source of coalition profit.

Execution Cost Savings: If coalition execution is more efficient than alternatives, the savings may be shared among coalition members.

Protocol Rewards: Some protocols offer rewards (liquidation bonuses, trading rewards, etc.) that are shared among relevant coalition members.

Cost Allocation: Coalition costs (gas, fees, etc.) are allocated among members, typically proportional to their resource usage.

Dispute Resolution

If disputes arise about profit sharing, the system provides objective dispute resolution:

On-Chain Evidence: Disputes are resolved based on on-chain evidence (transaction records, state changes, etc.) rather than subjective claims.

Automated Arbitration: Smart contracts automatically arbitrate disputes using predefined rules and on-chain evidence.

Reputation Impact: Agents that file frivolous disputes suffer reputation penalties, discouraging abuse of dispute mechanisms.

Appeal Process: Agents can appeal dispute resolutions, but appeals require additional evidence and may incur costs.

This dispute resolution ensures that profit sharing is fair and transparent, maintaining trust in the coalition system.

Trustless Coordination

Coalition coordination is trustless—agents don't need to trust each other because the system enforces agreements and provides verifiable execution.

Smart Contract Enforcement

Coalition agreements are enforced through smart contracts:

Automatic Execution: Smart contracts automatically execute profit sharing, penalty application, and other coalition terms based on on-chain evidence.

No Manual Intervention: There's no need for manual intervention or trusted third parties. The smart contract code determines outcomes.

Transparent Rules: Smart contract rules are transparent and verifiable. Any observer can understand how coalition terms will be enforced.

Upgradeability: Smart contracts can be upgraded to fix bugs or add features, but upgrades require consensus and are subject to governance.

Cryptographic Proofs

Coalition execution generates cryptographic proofs:

Action Proofs: Each agent action generates a proof that can be independently verified. This enables verification of coalition execution without trusting agents.

Coordination Proofs: Proofs attest to proper coordination—that agents followed agreed sequences, respected dependencies, and synchronized correctly.

Outcome Proofs: Final proofs attest to coalition outcomes, enabling verification that the intent was fulfilled correctly through coalition execution.

These proofs enable trustless verification—anyone can verify that coalition execution was correct without trusting agents or system operators.

State Synchronization

Coalition members maintain synchronized state through the Context Vault:

Shared State Updates: Agents update the vault with their actions, enabling other coalition members to see current state and coordinate accordingly.

Consistency Verification: The system verifies that all coalition members have consistent views of state, detecting and resolving inconsistencies.

Event Broadcasting: Important events (execution milestones, errors, state changes) are broadcast to all coalition members, enabling coordinated responses.

Conflict Resolution: If state conflicts arise, the system resolves them using on-chain evidence and predefined conflict resolution rules.

Failure Handling

Coalition failures are handled trustlessly:

Automatic Detection: The system automatically detects coalition failures through on-chain verification and timeout mechanisms.

Failure Attribution: Failures are attributed to specific agents based on on-chain evidence, enabling fair penalty application.

Automatic Remediation: The system automatically applies remediation (penalties, refunds, alternative execution) based on smart contract rules.

Reputation Updates: Agent reputations are automatically updated based on coalition outcomes, creating economic incentives for reliable cooperation.

This trustless coordination ensures that coalitions are reliable and fair, even when agents don't trust each other, enabling effective collaboration in a decentralized environment.

Coalition Lifecycle

Coalitions follow a well-defined lifecycle from formation through execution to dissolution.

Formation Phase

During formation, agents discover partners, negotiate terms, and commit to the coalition:

Intent Analysis: Agents analyze the intent to determine if coalition formation is beneficial or necessary.

Partner Discovery: Agents identify potential coalition partners through capability matching, historical collaboration, and reputation-based selection.

Term Negotiation: Agents negotiate coalition terms (roles, execution sequence, profit sharing, coordination protocol).

Commitment: Agents cryptographically commit to coalition terms through smart contract encoding and signatures.

Registration: The coalition is registered with the Agent Exchange, making it visible to the system and enabling coordination support.

Execution Phase

During execution, coalition members coordinate to fulfill the intent:

Coordination: Agents coordinate their actions according to the agreed protocol, sharing state updates and synchronizing at coordination points.

Parallel Execution: When possible, agents execute in parallel to minimize total execution time.

Sequential Execution: When dependencies require it, agents execute sequentially, with each agent waiting for prerequisites to complete.

Monitoring: The system monitors coalition execution, tracking progress, detecting issues, and ensuring all members fulfill their obligations.

Proof Generation: As execution progresses, agents generate proofs that attest to their actions and coordination.

Verification Phase

After execution, the system verifies coalition outcomes:

Outcome Verification: The system verifies that the intent was fulfilled correctly and that the final state matches the target state.

Coordination Verification: The system verifies that agents followed the agreed coordination protocol and that all dependencies were respected.

Proof Aggregation: Individual agent proofs are aggregated into a coalition-level proof that attests to the entire coalition execution.

Performance Evaluation: Coalition performance is evaluated (execution quality, speed, cost efficiency) and used to update agent reputations.

Dissolution Phase

After verification, the coalition dissolves:

Profit Distribution: Smart contracts automatically distribute profits according to the agreed sharing model.

Reputation Updates: Agent reputations are updated based on coalition outcomes.

Coalition Archival: Coalition records are archived for historical analysis and future reference.

Resource Cleanup: Coalition-specific resources (communication channels, shared state, etc.) are cleaned up.

This lifecycle ensures that coalitions are well-managed from formation through dissolution, maintaining system efficiency and reliability.