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# Local Agents Marketplace
### A trust-minimised, on-chain marketplace for LLM inference
Buy and sell prompt → response with **bonded escrow** on **Vector** (UTxO).
No platform fee. No central rate-limiter. Verifiable receipts on chain.
> *Status: M1 lifecycle proven end-to-end on Vector testnet — 2026-05-05.*
---
## The problem
* AI inference is **centralised** — a handful of providers, opaque pricing, account-level rate limits.
* Local-AI hardware is **idle most of the time** — GPUs and CPUs sit unused between user prompts.
* Buyers and sellers can't transact directly without a **trusted intermediary** taking a cut.
* "Verifiable" claims about which model ran are usually nothing more than the provider's word.
We need a **two-sided marketplace** where:
1. Sellers monetise spare compute,
2. Buyers get a **cryptographic receipt** of what was actually computed,
3. **Neither side has to trust the other** — bonds + on-chain settlement enforce honesty.
---
## How it works — three actors, one chain
```mermaid
flowchart LR
subgraph CHAIN[Vector — UTxO]
ADV[Advert UTxO
capability, price, bonds]
ESC[Escrow UTxO
locked funds + state]
end
SUP[🧠 Supplier
local LLM node]
BUY[💼 Buyer
app or agent]
IDX[🔭 Indexer
read-only bulletin board]
SUP -->|publish advert| ADV
BUY -->|discover| IDX
IDX -.->|index events| CHAIN
BUY -->|post escrow| ESC
BUY -->|prompt + escrow_ref| SUP
SUP -->|signed receipt| BUY
SUP -->|claim & submit| ESC
BUY -->|accept & pay| ESC
```
* **Supplier** runs the inference and publishes a price.
* **Buyer** posts the work as a bonded escrow, sends the prompt, accepts the receipt.
* **Indexer** is a public mirror of chain state — anyone can run one. No platform middleman.
---
## The bonded-escrow lifecycle
```mermaid
sequenceDiagram
autonumber
participant B as Buyer
participant Chain as Vector
participant S as Supplier
participant LLM as Local LLM
(OpenAI-compatible)
S->>Chain: PostAdvert (locks supplier_bond)
B->>Chain: PostEscrow → Open
(locks payment + bonds)
B->>S: POST /v1/chat/completions
S->>Chain: ClaimEscrow → Claimed
S->>LLM: run inference
LLM-->>S: assistant message
S->>Chain: SubmitEscrow → Submitted
S-->>B: 200 OK + signed receipt
B->>Chain: AcceptEscrow — supplier paid
```
Every transition is on-chain, validated by an Aiken Plutus V3 script. The receipt is signed by the supplier's advert key; prompt and response hashes are bound on chain.
---
## What if someone misbehaves?
```mermaid
flowchart LR
OPEN[Open]:::norm --> CLAIMED[Claimed]:::norm --> SUBMITTED[Submitted]:::norm --> ACCEPTED[Accepted ✓]:::good
OPEN -->|deliver_by passed| RECLAIM[Reclaimed
buyer recovers funds]:::warn
CLAIMED -->|deliver_by passed| RECLAIM
SUBMITTED -->|accept_window passed| RELEASE[Released
supplier collects]:::warn
classDef norm fill:#e0e7ff,stroke:#4f46e5
classDef good fill:#dcfce7,stroke:#16a34a
classDef warn fill:#fef3c7,stroke:#d97706
```
| Failure mode | Recovery | Loss bearer |
|---|---|---|
| Supplier never claims/submits | Buyer **Reclaim** after `deliver_by` | Supplier — forfeits supplier_bond |
| Buyer disappears after Submit | Supplier **Release** after `submitted_at + 10 min` | Buyer — forfeits buyer_bond |
Bonds make honesty cheaper than running away. Both sides have skin in the game; no third-party arbiter is needed for the M1 happy/timeout paths.
---
## Local-agent versatility — any OpenAI-compatible engine