Lambda the Ultimate

Koka is a function-oriented programming language that seperates pure values from side-effecting computations, where the effect of every function is automatically inferred. Koka has many features that help programmers to easily change their data types and code organization correctly, while having a small language core with a familiar JavaScript like syntax.

Koka extends the idea of using row polymorphism to encode an effect system and the relations between them. Daan Leijen is the primary researcher behind it and his research was featured previously on LtU, mainly on row polymorphism in the Morrow Language.

So far there's no paper available on the language design, just the slides from a Lang.Next talk (which doesn't seem to have video available at Channel 9), but it's in the program for HOPE 2012.