SORA v3
Discover the upcoming changes to the SORA economy as it shifts to a dual token model to foster productive output without supply dilution.
TL;DR
- SORA v3 has discovered the holy grail of economics — perpetual financing of production for high economic growth while not increasing the circulating supply of the native token
- Stage 1 of the SORA v3 tokenomics is coming soon™️
- As part of the tokenomics changes, TBCD will no longer be minted, effective immediately (this change will effectively make the XOR token supply deflationary)
- Producers, the heart and soul of any economy, will get funded not with newly created XOR but with tokens that are convertible to Kensetsu XOR, which will act as a Chameleon token that mimics XOR in only specified liquidity pools on Polkaswap (starting with XOR-ETH)
A New Horizon
Economies are like organisms; they are functioning, living entities and must constantly grow and evolve to stay alive. This means that money, the lifeblood of an economy, needs to provide sufficient nourishment to producers while also not increasing beyond the size needed to sustain health.
In SORA v2, the SORA (XOR) token (the main token on the network, used to pay gas fees) had an elastic supply managed by a token bonding curve. The theory behind this was sound — to manage the token supply to meet the economy's needs. However, without sufficient reserves, the SORA v2 economy experienced liquidity shortages.
At the same time, countries worldwide have been debasing their currencies by expanding their monetary bases for non-productive uses. While not directly related to SORA, this is an important narrative for billions of people, and (perhaps intentionally), many people became scared of any expansion in currency supplies, even for productive uses. This meta-narrative has important implications for SORA because we have to work within the confines of the grand narrative created globally, as we are, as of yet, too small to direct it ourselves.
Because of the state of the world and the needs that people all over the world have, SORA v3 must be able to provide adequate funding for producers to target high GDP growth in the SORA economy while also limiting the increase of token supply expansion, given the meta-narrative that has caused people to be fearful of “muh inflation.”
After a period of long and hard research, we finally stumbled upon the solution — a dual token model where builders are funded in a token that “acts like XOR” in some limited cases without expanding the circulating supply of the XOR token. From now on, TBCD will no longer be minted to fund builders (though the token bonding curve will remain active with the current settings), so this means the XOR token supply will not have a direct mechanism for an increase once the TBCD in circulation is all sold to and owned by the token bonding curve.
This is the holy grail of economics, as it allows for value creation without diluting a currency's scarcity. It truly shows the power of building blockchain-based economies with programmatic currencies, as a structure like SORA v3 would not be possible in traditional fiat money systems.
Building for the Future
Builders in the SORA ecosystem under the v3 tokenomics will still get paid for their work, but not in XOR. Instead, they will be paid in tokens (probably changing monthly or quarterly) that will be accepted as collateral to create Kensetsu XOR, a stablecoin pegged to the value of XOR. Kensetsu XOR will have the liquidity builders need because it will be usable as if it were real XOR in Chameleon pools (initially XOR-ETH only and configurable by on-chain governance). LPs of Chameleon pools will farm KARMA tokens to encourage Chameleon pool liquidity, as explained in a recent article by Satoshi Shibarimoto.
Keep in mind that increasing the amount of goods and services in an economy is crucial, by definition, to expand the GDP. Therefore, any viable economic system needs to keep in mind ΔMV=ΔPY and understand that you need an expansion of purchasing power for production to create more goods/services. SORA v3 tokenomics follows the General Quantity Theory of Money (Disaggregated Quantity Theory of Money) so our economy can expand sustainably and reliably, which will enable us to accomplish our goal of creating a new economic order for the world that enables collaboration instead of exploitation and competition. We will all own XOR, and we will be happy.
Towards a New World Economic Order
The world is changing, and SORA is all about creating a new world economic order. Humanity needs this because we are being kept far below our potential. There is war, famine, strife, and artificial scarcity across the planet, but life doesn’t have to be like this. Humans are very creative and are able to create more value than they take in, so we must have an economic system with true democratic guarantees that will enable producers to get the funding they need while also creating the necessary environment to perform trade and collaborate with others.
The SORA v3 tokenomics changes that will make XOR deflationary while still funding productive output will benefit not only the SORA economy, Polkaswap, Demeter Farm, Kensetsu, and SORA Card but also sovereign states that want a future-proof monetary policy that truly works for the benefit of all their citizens.
About SORA
SORA is an innovative, adaptive, non-debt-based monetary framework that facilitates economic stability, particularly for financially vulnerable countries. As a groundbreaking platform, SORA exemplifies the potential of blockchain technology in fostering a more inclusive and stable global financial system. Its integration in projects like the Bokolo Cash CBDC signifies a new era in digital currency, aligning technological advancements to achieve broader economic stability and resilience. Through its unique approach and capabilities, SORA plays a pivotal role in the evolution of global finance, particularly by supporting economies that need innovative and sustainable financial solutions the most.
