Inter Protocol Sunset FAQ

Below is a list of questions and answers that may help users better understand the events leading up to the sunsetting period, as well as information, instructions, and necessary actions users are encouraged to take to successfully exit Inter Protocol efficiently. If you have any questions or concerns after reading through this FAQ, we encourage you to visit the Inter Protocol or Agoric Discord and Discourse pages for further assistance.

Who decided to propose this shutdown? The recommendation came from the DCF board, after discussions with Agoric OpCo, the Inter Protocol Economic Committee, and other stakeholders. However, the final decision was subject to Agoric’s standard governance process. The community had the opportunity to discuss the proposition and vote on the subsequent proposal. The results of the vote can be consulted here.

How was the community involved in the decision-making process? The community was engaged through an open governance process that included a 10-day discussion period, and a 3-day signaling vote. The final decision was made through governance voting and received an overwhelming support of 75%.

How is the shutdown being governed? The process follows Agoric’s governance framework. The signaling proposal posted on Discourse  included a full plan for the shutdown. The voting results signal community alignment and support for the proposed sunsetting strategy. 

When did the community vote happen? As per standard governance procedure, the signaling proposal discussion, initiated on April 16, 2025, remained open for a period of at least 10 days. It was followed by the formal governance vote that began on April 28, 2025, and ended on May 1, 2025. 

What is the official timeline for the shutdown? Since the governance vote successfully passed, the shutdown process began the day after the vote was final, with the minting of new IST via vault operations stopping and liquidation penalties reduced to zero. The full timeline was included in the supporting materials for the signalling vote. 

What does this mean for IST as a stable token? IST will be phased out as part of the shutdown. Vault minting and new creation of IST will be disabled, and users will be given a 60-day period to return their IST and reclaim their collateral. After that, Inter Protocol will no longer support IST as an active token. The PSM will remain functional throughout the shutdown process.

What does this mean for the future of the Agoric ecosystem? The sunset of Inter Protocol is intended to sharpen Agoric’s focus on its core mission. By streamlining the ecosystem and reducing operational complexity, this transition strengthens BLD’s role and supports long-term ecosystem growth.

Why is this considered a positive move for Agoric? This transition allows Agoric to simplify its token model, reduce operational overhead, and focus more directly on a product-based ecosystem where the team sees strong long-term potential.

How does this affect BLD? The shutdown of Inter Protocol will elevate BLD as the central token in the Agoric ecosystem. 

What happens to my IST? You will be able to use your IST to repay debt and close your vault. IST will no longer be supported after the shutdown, so users are encouraged to close positions and exit the protocol before the sunset date. For users who acquired IST via the PSM, liquidity will be added to the PSM to allow these positions to be unwound.

What happens to my vault? Vaults will remain functional for a limited time to allow users to repay their IST and withdraw their collateral. After the shutdown period, the remaining vaults will be liquidated. A gradual increase in liquidation ratios will be used to encourage timely closure.

Will I lose my collateral if I don’t act in time? Your Vault will be automatically liquidated at the shutdown deadline. To avoid this, users should repay IST and close their vaults during the 60-day transition period. However, any collateral exceeding the due debt will remain in your vault, and you can access it even after the shutdown.

How much time do I have to close my vault and get my collateral back? You will have 60 days from the start of the shutdown (beginning May 1, 2025) to close your vault and reclaim your collateral before automatic liquidation begins.

Where can I get IST to pay back my Vault debt? The PSM will continue to function through the shutdown window. The EC and DCF have put measures into place to ensure there is enough IST available to cover all Vault closures. IST is also available via Osmosis (IST/USDC and IST/OSMO pools).

Will there be any fees or penalties for closing my vault? No. As part of the wind-down process, the Economic Committee will reduce the liquidation fee to zero. During the transition window, there are no penalties for voluntary closure. 

Can I still create a new vault or mint IST? No. Since the community vote confirms the shutdown, new vault creation and IST minting will be disabled.

Can I add more collateral to my vault during the transition period? No. Once the shutdown process begins, users will not be able to deposit additional collateral. Instead, they can obtain IST via the PSM and repay their vaults directly.

What happens if I don't repay my IST debt in time? If a vault remains open beyond the transition period, its collateral will be subject to forced liquidation through the normal auction process. In the event you receive some collateral back after a liquidation but fail to withdraw/claim it during the shutdown transition period, it will be at risk of being lost. 

Will there be support available to help me close my vault? Yes. A detailed guide will be published on the Inter Protocol website. Direct support will also be available through community channels and outreach.

What will happen to the Inter Protocol smart contracts? Smart contracts related to vaults, auctions, oracles, and IST minting will be explicitly shut down. This will be done in a way that avoids negative impact on the Agoric chain.

Will oracles and liquidation mechanisms continue to run during the shutdown transition period? Yes, until all vaults are closed or liquidated. Oracles will be shut down once they are no longer needed.

What happens to the Reserve assets? Reserve assets will be used to repay outstanding Inter Protocol expenses such as oracle fees. Any remaining funds (if any) will be addressed after all shutdown processes are complete.

How will IST be removed as a gas fee option on Agoric? Validators will be asked to remove IST as a gas fee option. Future transactions will use BLD.

What will happen to Inter Protocol front ends and websites? All Inter Protocol-related websites and front-end applications will be shut down and decommissioned after the protocol sunset.

Where can I go to get updates or ask questions? The Agoric Discourse forum and Agoric Discord will provide ongoing updates. Inter Protocol also held a community call to broaden the discussion - you can find a recap here. 

Will there be regular updates throughout the process? Yes. Weekly updates, reminders, and community calls will continue throughout the 60-day shutdown period.

How are you ensuring transparency during this process? All documentation, decisions, and updates are being published openly and communicated clearly. The shutdown plan is structured to provide visibility, support, and engagement at every step.

Is this a permanent shutdown or could Inter Protocol return in the future? The current plan is to fully wind down Inter Protocol, including smart contracts, UIs, and community infrastructure. While future decisions are up to the community, this sunset is designed as a complete and final shutdown.

Will this affect the broader Cosmos ecosystem? The impact is expected to be localized to Inter Protocol and Agoric. While IST was available within Cosmos, its usage was relatively contained. The sunset has been carefully planned to minimize disruptions.