SHORT ABOUT: SORA
What is SORA?
SORA is a new economic system aimed at creating a supranational, decentralized central bank (DCB) with built-in tools for decentralized finance (DeFi).
The key thesis of the SORA economic system is that for cryptoeconomic systems to be able to compete with contemporary, centralized economic systems there needs to be a rational economic model. One of the reasons decentralized P2P economic systems haven’t been more widely adopted and lack sophistication is not having access to an elastic supply of capital via a central bank or mutual savings bank. By decentralizing the concept of a central bank, blockchain networks can finally create and allocate capital to fund worthwhile producers as well as needed infrastructure and public goods.
A token bonding curve is suggested to use to autonomously manage the issuance and de-issuance of XOR in the economy. In other words, the supply of token is managed in a rational way, without involvement of humans, which will create a system that avoids the boom-bust problems of traditional economies and the deflationary economics of many cryptocurrencies.
More about SORA economy is here.
Sora Parliament
Another important piece of the SORA ecosystem architecture is the SORA Parliament, a multi-body sortition, censorship-resistant governance solution. Through the SORA Parliament, the Citizens will allocate new tokens for companies use explicitly for creating new goods and services for real use cases. The main task of the SORA Parliament is to allocate newly minted XOR to productive projects. When the SORA Parliament allocates capital, it is exercising the most powerful force there is: creation of new purchasing power. You can read more about the SORA Parliament here.
Polkaswap
One of the DeFi applications that will run on the SORA network is Polkaswap, a non custodial liquidity aggregator, cross-chain AMM DEX designed uniquely for the Polkadot ecosystem. With its interoperable technology, SORA aims to become the decentralized central bank for the world, financing the creation of new and exciting applications.
SORA v1 is built on Hyperledger Iroha.
SORA v2 will be built on Substrate and is planned to become a Kusama and Polkadot parachain.
Tokens
SORA ecosystem has two tokens: $XOR and $VAL.
XOR is an utility & governance token used for transaction fees (gas) on the SORA Network. Until V2 launch, which is planned in Q1 2021, XOR supply is fixed at 350000.
After launch a Token Bonding Curve will be implemented, and will manage the supply with buy and sell price functions. This means that as the token supply increases, the price also increases, and vice versa. The price will be regulated by the bonding curve, so no extreme fluctuations in the price will be exhibited, but a smooth growth or decline.
XOR has also governance capabilities; enables holders of a certain amount to become a Citizen and member of the SORA Parliament.
Finally, it is used to add liquidity to pairs on Polkaswap and to stake to become a validator or to nominate validators on the SORA Network.
VAL is an utility & governance token used to reward validators on the SORA Network, created by community governance.
VAL is a deflationary token, as its supply decreases over time, with tokens burned at every SORA v2 network transaction.
In addition, VAL holders receive a part of the XOR created by the token bonding curve. VAL holders can group together into DAOs to decide how to use their XOR tokens. They can for example pool them to provide liquidity to trading pairs on Polkaswap, or they can use them to help subsidize citizenship bonds.
VAL has 100 million initial supply and unlike XOR, its price is free to float.
VAL token is distributed to 3 groups approximately equally, in 3 stages:
- Former v1 XOR holders (already distributed)
- ERC-20 XOR holders as an airdrop (at the SORA v2 network launch in Q1 and after)
- The upcoming SORA Parliament (after the SORA v2 network launch)
You can have more info about $XOR here and about $VAL here.
SORAmbassador Programme
Recently Sora started the SORA Ambassador Programme, aimed at building a larger SORA community: participating in the SORA communication channels, or helping write or translate articles about SORA. Details.
Sora Farm
SORA Farm allows users to earn PSWAP tokens by providing liquidity for ETH-XOR, ETH-VAL, XOR-VAL pairs on Uniswap or Mooniswap. Details.
Links: Website | Twitter | Medium | GitHub
We thank Grug for the help in preparing the article.
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