vXOR AMA Recap
On Tuesday, October 8th, SORA contributor Billy and Dr. Makoto Takemiya held a live AMA session to discuss the latest $vXOR updates. The team answered community-submitted questions and provided key insights.
With the introduction of the $vXOR token, SORA contributors hosted an AMA session on October 8th to address key questions from the community. They provided updates and insights into the latest developments.
Check out the transcript and session recording for all the details! The questions and answers have been edited for clarity.
Hello, Dear community! Welcome to the Vested XOR (vXOR) AMA! Dr. Makoto Takemiya is joining us today. First, we will answer the pre-submitted questions and then have a short live Q&A.
Makoto: Hi, it’s great to be here today!
Let’s start with an introduction, although for many in the community, yours is a familiar face, can you introduce yourself to the newcomers here today?
MT: My name is Makoto Takemiya and I got into blockchain in 2013, starting with Bitcoin. I am an engineer and after being in the Bitcoin community for awhile, I joined NEM as one of the original 5 developers and proposed their consensus algorithm, Proof-of-Importance.
From there, I became interested in the enterprise blockchain space and started my company, SORAMITSU, in 2016, focusing on contributing to the open source, Hyperledger Iroha blockchain. We used Iroha to build the world’s first retail CBDC solution launched using real money in the world, in 2019, in Cambodia, working with their central bank.
In 2017, I decided to return to my crypto roots and contribute to the open source SORA project, which we have been doing ever since.
I graduated with my PhD in Interdisciplinary Information Studies from the University of Tokyo. I’m also a visiting researcher at the University of Tokyo.
Is vXOR inflationary? What is the mechanism that creates inflation? What is the relationship between XOR and vXOR, regarding both purpose and effect on supply?
MT: vXOR is created from work, but it is burned by transaction fees paid on the SORA network. This means that the supply is a function of the work done in building the SORA ecosystem and how many users are in the ecosystem. The two are linked because it doesn’t make sense to build things people are not using. The “vested” in vested is also a reference to the buy-back-and-burn that occurs using almost half of the transaction fees paid on the SORA network.
XOR has great tokenomics, there is no doubt about it. Question — Will SORA be multichain in the future?
MT: You mean crypto economics, not tokenomics :) SORA is already multichain, as there are bridges and XCM links to other parachains. A super cool bridge to the TON ecosystem to link their millions of users to the SORA network is also in the works.
It was said in the article with the SORA ecosystem updates that vXOR is needed for Soratopia and the expansion into the TON ecosystem. Can you explain a little more?
MT: There will be some activities in SORATOPIA that will require the use of vXOR. There are also some projects on TON in the works that will use vXOR. BTW, if you haven’t tried SORATOPIA yet, it’s an ultra-based, pray-to-earn game on Telegram: https://t.me/soratopia
Is there any possibility of vXOR being used to promote the scope of marketing campaigns?
MT: Yes, vXOR can be used for valid marketing proposals. Not like the SORA logo on footballers’ t-shirts, but valuable marketing that brings more users and builders to the network can be considered.
The community often questions the creation of tokens (in comparison, we don’t have as many tokens as Ethereum), but I assume that the idea behind this is to open up new markets and thus attract funds to the ecosystem, and consequently contribute to the growth of XOR. Is that the way forward?
MT: Every token that is created needs to have a function and a purpose that is distinct. XOR is the key token of the SORA economy, but the community consensus is not to increase the supply, even for productive uses. Because of this, a new method is needed to enable productive growth of the SORA economy. Recall that to have economic growth, you have to have growth in the supply of money too (in the words of Professor Richard Werner: “that for nominal GDP (i.e., the value of transactions that make up nominal GDP) to grow, there must be an increase in credit creation used to fund this growth.”). This is because just investing in production has a “crowding out” effect because you can only use the same money in a single transaction at the same time, so you have to choose what to do with it. You cannot use the same money to invest $1 million in both startup A and in startup B too, if you only have $1 million. However, if you expand the money supply, you can invest in both startup A and startup B, and this won’t be inflationary because you will get output from both A and B, and on the aggregate, producers create more value than the factors of production they input, so the output will be larger than the input. That is how economies grow. To put things into context for the SORA ecosystem, we cannot expand the supply of XOR, so instead we need to consider XOR + vXOR as the money supply (which we can loosely do because vXOR is convertible to XOR over a long time horizon, because of the buy-back-and-burn vesting mechanism). So this gives us a theoretical basis on how to expand the economy. In the future, once capital markets are developed for the SORA economy, that will give additional options.
Could you better distinguish the differences between KXOR, VXOR, and SB and their contribution to funding the ecosystem?
MT: KXOR is Kensetsu XOR, an overcollateralised asset pegged to the price of XOR. vXOR is vested XOR that is linked to XOR via the buy back and burn mechanism from SORA network transaction fees. New vXOR can only be created by on-chain governance, while anyone can open a KXOR vault. SB is a dollar-pegged, overcollateralized asset, similar to KUSD.
$vXOR will be created through referendums and will cost less than the XOR, but the VXOR will mainly be used as collateral for Kensetsu what will be the coefficient on top of the collateral?
MT: This is not really accurate, vXOR will not only be used as collateral for Kensetsu and its value compared to that of XOR will depend on the market. Of course collateral for Kensetsu assets is one way to create utility for vXOR.
How is this model better than the old model?
MT: In the old model, TBCD was able to purchase XOR from the token bonding curve at a preferred rate, which increased the XOR supply, but also provided some backing for XOR. However, the community did not like this approach, so new TBCD will not be created. Instead, vXOR is used to enable economic growth.
If I buy $vXOR what can I do with it? Why would I buy $vXOR?
MT: vXOR will be accepted as collateral for various KENSETSU assets. It will also have its own DEX ID on Polkaswap (meaning it will be its own base pair and you can add LP to other assets with it). SORATOPIA will also use vXOR for some tasks. Finally, you can farm with vXOR on the really awesome Demeter farm at https://farming.deotoken.io or Polkaswap.io.
I am a builder, how do I get funded in $vXOR?
MT: You can RFP: https://medium.com/sora-xor/how-to-rfp-proposing-new-functionalities-to-polkaswap-and-the-sora-network-4af099b15f75
Where and when do I vote on governance proposals?
MT: You can vote on the Dotapps.io interface under the democracy tab. The SORA notification bot will let you know when there is a proposal available to vote on. I also hear there is work on Polkswap to add a way to vote on these proposals with style and freedomAbout SORA.
Does $vXOR replace kXOR?
MT: vXOR will be used to enable productive economic expansion. It is a different token and unrelated to kXOR (Kensetsu XOR), which is a XOR-pegged Kensetsu asset.
$XOR now has less burn from TX fees, how is this good for the SORA ecosystem?
MT: The purpose of SORA is not to have a lower supply of XOR, it is to create a new world economic order targeting high growth, collaboration, and progress.
$VAL tokenomics are still the same?
MT: Yes, they remain unchanged. VAL Diddy will have a party tonight to celebrate.
How do I earn rewards by holding $vXOR?
MT: The rewards are given to XOR-vXOR LPs and vXOR stakers via Demeter farm. Go check out the current rewards and DYOR and make your own decisions based on knowledge.
Has there been any consideration given to the idea of creating a vault where xor is accumulated (% of some fee could buy xor and deposit it in the vault) and in the future builders could exchange vXOR 1:1 with xor?
MT: Yes, this was thought of, but for now the buy-back-and-burn mechanism is used as that was already implemented for other tokens and it’s always good to reduce dev time spent on a single task.
Will XOR, VAL, and PSWAP keep the same tokenomics and utility in the ecosystem? Besides the part of XOR burn relocated to vXOR?
MT: Yes, each token is distinct. XOR is the new world decentralized currency to power all economic activity on earth (one world, one economy). VAL is to entice validators to set up fast servers and run nodes. PSWAP is to entice LPs to add muh TVL.
Will vXOR have its own TBC affecting its supply? 🤔
MT: No, but there will be a separate TBC token
Thank you very much for submitting your interesting questions, and special thanks for answering! We look forward to seeing you in another AMA! To our guests, do you have anything to tell the SORA community before we wrap up?
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.
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