AMA with Makoto Takemiya: CEO of SORAMITSU
Lucky McLuciano: Hey @mtakemiya! How are you? Can you introduce yourself? :)
mtakemiya: Hello!
I’m Makoto Takemiya, the co-founder and CEO of SORAMITSU. I am a computer scientist and currently a Ph.D. student at the University of Tokyo. I got into crypto in 2013, and have been enthralled by the possibilities of cryptocurrencies and blockchain to improve the human condition.
Lucky McLuciano: Really cool! Nice to see you’re an ‘OG’ in the space! :)
Can you please give us an elevator pitch for Sora?
mtakemiya: Sure!
SORA is a new world economic system that combines on-chain, democratic governance with the ability to allocate XOR tokens for the creation of productive economic output. The goal of this is to provide the resources needed to push humanity forward technologically and to solve the countless problems we have.
Joey Parachain: I like this. It has an Elon Musk vibe to it. Not sure if you’re a fan but obviously that’s a compliment.
mtakemiya: Musk is cool, except for his choice in meme coins.
Lucky McLuciano: Awesome! I love the motto and your driving forces!
Joey Parachain: Meme selection its [sic] own talent. He may lack [sic] there. I agree. (Lol)
Lucky McLuciano: What problems is [sic] Sora solving? In as high-level terms as it possibly gets?
mtakemiya: SORA solves the problem of the creation and allocation of new purchasing power in an economy. According to Fisher’s equation of exchange, ΔMV=PΔY, new output requires the expansion of the monetary base, M. To be more precise, M should be created specifically and exclusively for the creation of Y, which are new goods and services.
In the context of SORA, this means that new XOR tokens should be created and distributed for investment into the creation of new goods and services that take XOR for payment. This will push humanity forward, realizing the creation of a supranational and democratic governance structure to allocate capital in a fair way. This could be through development loans for nations or equity investments in startups, where the new purchasing power can be used for production.
Many people are unaware of how important it is to allocate money in an economy. The problem that SORA is solving compared to other projects, is that most cryptoeconomic systems lack a rational way to allocate new tokens in their economies.
Lucky McLuciano: Great to see you’re properly tackling the problem of new token allocations!
What are the short-term goals for the project? 🤓
DonDiegoSanchez: Hi Makoto, thanks for being here.
On a more technical level, one of your fans told me KSM was coming to PolkaSwap soon. Is it true? Do [sic] you build your own bridge or will this be based on the MoonRiver “ERC20 converter” for KSM/Statemine token or just through XCMP when Sora will become a parachain? Or something else? Thanks!
mtakemiya: Oh, great question! We are planning to set up a new network as a parachain, called somewhat uncreatively (I admit!) the SORA Kusama Parachain network (SKP). Once that is set up, we will just bridge our existing SORA network to the SORA Kusama Parachain, to move tokens back and forth.
Orlix666: So you’ll run one token strategy for both chains? Or a separate one for the new chain? Just so it’s clear for all members.
mtakemiya: Yes, both chains will use XOR. It is part of the “Many Worlds, One Economy” goal of SORA.
Orlix666: Excellent! Many will prefer this.
DonDiegoSanchez: Oh nice, so your Kusama parachain will be some kind of third relay chain in the ecosystem? A bit like what EWC has announced too?
Could you tell us what brings you to the conclusion you needed to do that?
What would be the advantage of doing that instead of onboarding SKP chains to get a slot on Kusama?
mtakemiya: I wouldn’t call it a relay chain. The SORA Kusama Parachain will be a parachain, so it will get transaction finality from Kusama. It will just link to other networks in specialized ways as well.
Lucky McLuciano: A full-fledged ecosystem in the making!
mtakemiya: There are several advantages to doing it this way. We can keep our existing network running with faster block times and independent/easy to evolve, while at the same time having an area of shared security and compatibility with the Kusama relay chain for some specific use cases. The first use case, of course, will be bringing KSM to the SORA network and to Polkaswap!
DonDiegoSanchez: Ok, so more like a chain bridge between the SORA network and the Kusama ecology, interesting. You get the best of both worlds that way.
Lucky McLuciano: Great to see different parachains innovating and choosing distinct approaches to their architecture!
cbiggsy: Sora recently introduced the XSTUSD stablecoin to the network. Can you please tell us more about this and how well has it been adopted by the community so far?
mtakemiya: Sure. Currently, over $600k worth of XSTUSDs have been created (https://mof.sora.org/qty/xstusd), by burning XOR to mint XSTUSD. It is a stablecoin that is pegged via a primary market maker on Polkaswap, which has infinite XOR and will always buy your XSTUSD for $1 per XSTUSD. Conversely, $1 of XSTUSD is created by burning $1 worth of XOR.
You can read about it here: https://www.forbes.com/sites/tatianakoffman/2021/11/23/the-rise-of-decentralized-money-on-polkadotnew-algorithmic-stablecoin-launches-on-sora/
Orlix666: What are your priority target groups for network growth? Does SORA have a fleshed-out expansion plan? Or do you believe more in fully letting the ecosystem run its course and gradually expand its coverage? Build and they will come if you will.
mtakemiya: We want to focus on projects to build dApps on the SORA network, as well as other projects to use our financial infrastructure. For example, I would love it if XSTUSD could be added as collateral of MakerDAO.
We are also working on expanding the ecosystem and we have started the SORA Builders Programme (https://medium.com/sora-xor/sora-builders-programme-979bea8831ed) to provide support for those who want to build in the SORA ecosystem.
Additionally, we have an RFP process where anyone can suggest new features for development: https://medium.com/sora-xor/sora-polkaswap-decentralized-development-process-6df207d7518a
and
Orlix666: Ok, so even backing new projects which have potential and want to build on the network. Nice.👍
mtakemiya: Yes, there is an infinite amount of XOR for those who want to build things and can deliver.
Lucky McLuciano: What are the next few steps for you guys? 🤓
mtakemiya: We aim to set up both Kusama and Polkadot parachains, and expand asset bridges to all EVM-based networks in the short term. Also, the Fearless Wallet (https://fearlesswallet.io) team is working on adding support for the SORA network and ecosystem. So just building this basic infrastructure are the immediate next steps.
Lucky McLuciano: Setting everything up is definitely a priority. Near future looking bright for Sora!
DonDiegoSanchez: Do you plan on using pallets from other DotSama parachains ? I’m thinking about Picasso obviously here and their many bridges to different kinds of L1 and L2. Or does everything will be [sic] Sora-made/remade?
mtakemiya: Yes, we also use many standard pallets, and our SORA — SORA Kusama Parachain bridge is building on Parity’s bridge code quite a lot.
Lucky McLuciano: How would you describe the role that Polkaswap is playing for the project?
mtakemiya: Polkaswap (https://medium.com/polkaswap/introducing-polkaswap-6f1db4003747) is the decentralized financial market infrastructure for the SORA economy. It is the main liquidity source for XOR and integrates the XOR token bonding curve (https://medium.com/sora-xor/sora-the-new-economic-order-3ec3f0327e5a) as the primary market maker for the token.
Polkaswap is the DEX for the interoperable Defi future on Polkadot and is also where XSTUSD (https://www.forbes.com/sites/tatianakoffman/2021/11/23/the-rise-of-decentralized-money-on-polkadotnew-algorithmic-stablecoin-launches-on-sora/) has its primary market maker. Bridges to EVM-based networks and links to the SORA parachains will make Polkaswap the best source for liquidity for all substrate tokens.
You can check out this article for more details as well: https://www.forbes.com/sites/tatianakoffman/2021/04/27/the-rise-of-decentralized-exchanges-on-polkadot/?sh=778502098169
Lucky McLuciano: That’s great insight! The future is decentralized indeed. Nice to see what you aim to achieve with Polkaswap.
DonDiegoSanchez: I’ve got another one, more controversial.
You recently released your rewards plans for crowdloaners on Kusama, and I can tell you that in some corners of the DotSama space people are laughing at them. That’s always the case with projects having a circulating token already, it’s hard to beat the excitation that an uncirculated token is bringing, especially since MoonRiver.
My question is, do you have a plan to raise them to get a parachains slot faster? And aren’t you afraid of not getting one at all? Or do you think there will be plenty of slots and that one way or another you’ll get yours?
Joey Parachain: Good question.
mtakemiya: I don’t think we will have any trouble getting a parachain slot. Kusama parachain auctions are not very competitive right now. It was precisely anticipation of this that we have waited until now. It doesn’t make sense to hurt the long-term viability of our tokenomics just for a 10-month lease. So we offer only a token amount of tokens (see what I did there) and not very serious rewards because we don’t have to give out more. Users will get their KSM back at the end of the lease period, and they get some free tokens from the SORA ecosystem to show gratitude.
Also, we are not in a rush to get a slot, so we do not care if we lose at first. Eventually, we will win. No problem.
Joey Parachain: Fair enough! Makes sense.
DonDiegoSanchez: Thanks, I guess you already have a big community, which is part of what crowdloans are used for until now.
mtakemiya: Exactly. Everyone can give a little bit
Joey Parachain: I watched your interviews and I know you are not a fan of the [sic] crowdloans. Is that still the case? This is an older interview with you.
mtakemiya: Yeah, I think it is bad in the long term for projects. So after we get KSM on the SORA network, we will just mint XOR via referendum to buy KSM and have a treasury.
Right now we don’t have a choice because we do not have a parachain and don’t have KSM on the SORA network.
Joey Parachain: Understood.
Lucky McLuciano: I see! Thanks for sharing the team’s vision on this matter.
But don’t you see the PLO as a really good opportunity to further decentralize token holders right from the start, and create an even bigger user base/community? Or instead, do you believe the drawbacks outweigh the advantages?
mtakemiya: You are right that there are certain marketing outcomes from crowdloans that are good. However, it seems kind of weird still to have to go and beg for tokens every 10 months. It’s better to have a self-sufficient amount of KSM held by the ecosystem instead.
Joey Parachain: Yes, definitely appreciate this perspective. I wonder how many other projects feel the same?
DonDiegoSanchez: At some point, every project will need self-sufficient sources of KSM or they’ll die, that’s for sure.
Orlix666: As a developer still trying to get attention to your project in the relative starting phase. Do you partly look forward to the bear market? Where undoubtedly hype coins which have much marketing but no substance will be weeded out and discussions on the market go back more to fundamentals and actual progressing of an ecosystem? Or do you prefer the madness of the bull where the money comes fast? Hypes rise or fall in a week. And proper info often gets lost in the noise and you hope the right people and channels still pick it up?
mtakemiya: The bear market is not an easy experience. I’ve been through many and even if you have high quality and good ideas, it is not enough.
I don’t know if we will have a normal bull-bear cycle, though. USD is getting rekt [sic].
cbiggsy: As far as XOR becoming a currency for the Nation-States, are you able to share any potential progress or hints towards this?!
mtakemiya: Some of the ideas are written about here: https://medium.com/sora-xor/many-worlds-one-economy-1ce709d4fb42
In general, nation-states can benefit from using a supranational token like XOR, where they can join in the governance process to request newly minted XOR tokens for productive investment. It’s much better than debt-based economies.
However, I cannot talk about any specifics. If you have any countries you think are a good target, please just DM me and tell me what you think 🙂
Orlix666: So we can assume SORAMITSU anticipates this and has a bear market plan in place? There won’t be whale sounds and tumbleweeds for a couple of years? (worst case, timewise) A view shared by many atm.
mtakemiya: We always do what we have to do.
Lucky McLuciano: I like the supranational approach. Definitely a must, going forward.
Is XOR a utility token? Can you briefly list all the purposes it serves/will serve?
mtakemiyta: Indeed, XOR is a utility token, or rather, the utility token of the SORA network. It has quite a few uses. First of all, transaction fees (gas) on the SORA network are paid in XOR. It is also used to add liquidity to pairs on Polkaswap, and it is used to stake and to nominate validators on the SORA network (about 15% of the supply is locked up in nominating validators).
Joey Parachain: Nice! I like the multi-purpose utility for the token.
Lucky McLuciano: Great, no shortage of utility there indeed!
Is there a road map? If so, at what stage is SORA at right now?
mtakemiya: Our roadmap is really defined by the motto: Many Worlds. One Economy.
https://medium.com/sora-xor/many-worlds-one-economy-1ce709d4fb42
Lucky McLuciano: Thanks for sharing! Worth the read!
Joey Parachain: I like this.
Cbiggsy: How has the network performed to date in terms of uptime, transactions, liquidity, etc.?
mtakemiya: Uptime has been 100%. So far there have been no problems with block production.
There have been 3,124,521 blocks and 3,064,608 transactions (according to https://sora.subscan.io/).
Orlix666: Do you find it hard atm to onboard quality devs? Or do you have an abundance of choices in your region? What advice would you give to members looking to get active as a developer in the space? Do you see a lack of certain profiles you’d recommend to put focus towards?
mtakemiya: We hire a lot of devs and our company size has doubled in the past year. Additionally, there are other teams building in the SORA ecosystem now, like Ceres and Umi, and hopefully many more to come.
It’s always hard to find high quality people. It just takes time and effort, but they are out there if you look.
Lucky McLuciano: Great stuff.
I noticed that you mentioned it briefly up there. Can you tell us a little bit about the Token Bonding Curve (TBC) and how does it work?
mtakemiya: In simple words, the token bonding curve is essentially an infinitely liquid, decentralized central bank. At any time, you can buy newly minted XOR from the token bonding curve using some specific reserve assets (such as ETH or DAI), or sell your XOR tokens (which are instantly burned) for one of those assets. There is constant upward pressure on XOR because it is burned with each transaction, so the TBC is used to meet the demand for the XOR token in an elastic way.
Orlix666: Are you open to a multitude of exchange listings and believe the market regulates [sic] itself in time? Or are you very selective in cooperation with exchanges?
mtakemita: So far we have not worked with any exchanges that have listed our tokens. I don’t think Satoshi went around begging people to list BTC. It’s my opinion that XOR/VAL/PSWAP/XSTUSD is a big part of the new world economic order and everyone will list them in due time.
This is our exchange listing strategy: https://www.youtube.com/watch?v=M213TbKqxlU
Lucky McLuciano: What are the main challenges SORA faces [sic] right now, going forward?
mtakemiya: SORA has to work hard to reverse trends of greater and greater centralization in financial resource allocation and planning. There are also significant global trends against human freedom and we have to work very hard to overcome these trends and bring liberation and empowerment to humanity. We can do this in part through the SORA Parliament, which is a decentralized global governance system that we are also working to set up: https://medium.com/sora-xor/the-sora-parliament-af8184dae384
Lucky McLuciano: I really like your views and your approach towards human centralization in finance!
What are your goals for the next year for SORA and Polkaswap?
mtakemiya: To become Kusama and Polkadot parachains and expand the bridges to all EVM-based networks!
Besides that, we are working on expanding the ecosystem and we have started the SORA Builders Programme (https://medium.com/sora-xor/sora-builders-programme-979bea8831ed) to provide support for those who want to build in the SORA ecosystem. One year goes by really fast, but we think we can work with many teams in our ecosystem to build new and amazing features that users will love to use while bringing our goal of creating a world ecosystem to life.
Lucky McLuciano: How cool! Our community members should definitely give [sic] a look at Sora’s Builders Program! ;)
What is the strongest advantage that you think will make SORA lead the market?
mtakemiya: Deep understanding of economics and blockchain are unmatched I think. I personally have been working in the blockchain space since 2013, and I think the work we are doing is truly meaningful and is the correct path to push humanity and also decentralized technologies forward.
Lucky McLuciano: You certainly have the upper hand there! Thrilled to see how you guys do [sic]— very well for sure!
We are now going to open the chat to the community’s questions. Please make one question each, and @mtakemiya will choose 4 of them to answer! :)
mtakemiya: Okay, this is going to be hard. I will just scroll randomly and choose questions to answer.
LuckyMcLuciano: I would suggest scrolling from the top, to make sure questions are original and copy-paste is not rewarded ;)
Tolga: Hi there,
Bridge mechanism has any insurance, safety offer too?
mtakemiya: The HASHI bridge used on Polkaswap.io is a SORA ecosystem Systemically Important Infrastructure (SII), so any losses due to hacks or exploits are promised to be covered by the ecosystem via minting XOR. This is part of the Social Insurance for Systemically Important Infrastructure: https://medium.com/sora-xor/social-insurance-for-systematically-important-infrastructure-18a63ef711ca
Trum Cryp: During these days, being a multi-chain platform is an obligation to be considered a competitive project, so can you explain how many chains are you able to support?
mtakamiya: Via parachains, we can support access to every parachain network of Kusama and Polkadot. Once the EVM bridge is ready, BSC, AVAX, EWC, and Klaytn will be added, in addition to Ethereum
Right now anyone with XOR can vote in a referendum on-chain. In the future, the SORA Parliament will allow only citizens to vote via random sortition. Citizens will need at least 150 XOR.
You can read more here: https://medium.com/sora-xor/the-sora-parliament-af8184dae384
or watch: https://www.youtube.com/watch?v=rqWWCzbcttc
In fact, why not check out all the videos from the SORA Economic Forum in June: https://soranomics.com
General SORA: Oracles on SORA! What can you tell us more about that? How is it releated to synthetic XST assets?
mtakamiya: SORA has its own oracle protocol that is being implemented in Substrate. It will allow price feeds from oanda.com to be written on-chain, enabling the creation of XST assets for any currency supported in Oanda.
So yes, Bashar Al Assad fans can finally get their XSTSYP stablecoin.
Phu Vũ: Do you have an AUDIT certificate or are you working to audit your project, so that the security of the project becomes more secure and reliable?
mtakamiya: In addition to this audit, we also got another audit recently and will publish results early next year I think.
leonito: Do we have liquidity on the networks? And what is the use case of the normal SORA network then? It’s a bit confusing in my eyes [sic].
mtakamiya: Liquidity on Polkaswap.io can be seen here: https://tools.cerestoken.io/pairs
There’s pretty good liquidity for many token pairs.
The use case of the SORA network is the main network of the ecosystem, but other networks, like the SORA Kusama Parachain, are also full blockchains and can be upgraded by on-chain governance to become anything the community wants or needs in the future.
Our goal is to create a world economic system, so having many chains using the SORA tokens and economic utilities will help to realize our vision.
Mr R: Long-time XOR/Val/Pswap holder/farmer/liquidity provider here. Also co-creator of the first whitelisted native polkaswap coin called TAMUCoin. Does the parachain mark the move from testnet to live? With that what is the timeframe for being able to more easily onboard fiat? Like maybe through the SORA app or Fearless Wallet?
mtakamiya: What does TAMUCoin do? I remember I saw it on the whitelist.
The SORA network is already live, so we don’t really consider the parachain to be that different from what we have now. It will just increase interoperability.
For onboarding through fiat, some countries will be able to use MoonPay to buy crypto, as you can see on the testnet: https://test.polkaswap.io
However, it will still be quite some time before buying XOR will become easier. Right now it still is for professional shitcoiners.
Joey Parachain: Ok, that was the last question. Wow, amazing AMA!
@mtakemiya you were absolutely amazing. Very informative and obviously the community has some excitement for the project
mtakemiya: Thanks, guys. Glad everyone is SORA-pilled now
Joey Parachain: Yes we are. Please do not hesitate to reach out.
Lucky McLuciano: Thanks a lot! @mtakemiya It was awesome having you here!
Orlix666: Drop in from time to time. We have ramen and anime GIFs.
mtakemiya: Sure!
Lucky McLuciano: A big thank you to everyone who participated and learned a bit more with our AMA!
