SORA
I recently wrote an article about my thoughts on our current economic situation and the need for monetary rationality. The article (rightfully) criticized Bitcoin for being for having non-rational (stupid) management of the currency supply. Instead, I argued, what we need is the SORA platform, which allows for decentralized monetary rationality.
Well, the article was a bit more controversial than I had expected (I mean, just look at the crash in BTC price vs. USD when things became just a little bit hard; markets want brains behind their currencies). So therefore, I am writing this article to introduce SORA a bit more and why I think it is the platform we should be looking at to build a world economy around.
First, what is SORA?
SORA is a platform that launched in October, 2019, and aims to be a decentralized, yet rational, platform for creating and managing a cryptocurrency. It may sound contradictory for a decentralized cryptocurrency to be managed, but what I mean here is that it has some rationality behind the creation and distribution of the XOR currency.
In SORA, thousands of people come together to vote on whether a project should receive an allocation of newly minted XOR or not. This creates new purchasing power in the SORA economy, by inflating the amount of the XOR currency, but at the same time new goods and services are also provided by the producers of projects. With XOR being used for increasing numbers of goods and services, the price of XOR could be deflationary, even if the amount of XOR is increasing.
To make XOR useful as a medium of exchange, it has been proposed to mint a stable coin derivative of XOR called XST. However, Soramitsu, who programmed and released the first version of SORA, has made it clear that it won’t publicly release XST. Instead, Soramitsu plans to take a hands off approach and the community should decide future development.
Why should we care about SORA?
Cryptocurrencies have existed since Bitcoin was launched in 2009. Unfortunately, they are far from being mainstream and even farther from replacing fiat currency. Instead, cryptocurrencies have found a small niche as a highly volatile, speculative investment. Speculation won’t change the world, so we need to create viable, decentralized alternatives to fiat currency.
SORA is the first platform to provide a viable alternative to centralized fiat currencies, because the XOR cryptocurrency can be minted and distributed to producers to create new products that contribute to the economy. In other cryptocurrencies, this structure does not exist. In reality, creating new purchasing power for new goods and services is the most vital part of an economy, because it controls the expansion or contraction of an economy.
Why is SORA the ideal platform for building a decentralized world economy?
The world is at an important turning point. Natural resources are constantly being consumed, increasing entropy, whereas the Sun only provides a constant amount of input energy. The debt-driven paradigm of the current economic system requires constant growth based on the exploitation of natural resources, which logically must one day run out. On the other hand, humans have been very good at coming up with new solutions and increasing productivity.
To fully empower humans to produce as much and make as much progress as possible, while minimizing the increase of entropy and to decrease consumption of natural resources, an economic paradigm that is not debt-based is needed. This is where SORA comes in. SORA mints new XOR to give to projects and the projects can be created and expand the economy, without having to repay a debt with interest. This allows producers to take a longer-term view of their actions and create a more socially justifiable outcome, as the producers also have to show face to the SORA community.
This is exactly what the world needs right now. We need a system where everyone can participate and directly the creation and distribution of money for the optimal social good. SORA provides this and by providing money to producers, SORA can help our economies to go through the hard times we are experiencing, without centralizing control in a small group of people.
These are my own personal views. There is no investment advice here. I am not a member of the SORA team, but am just an Internet troll who wants to make the world better. Peace, love, and SORA.
