The community envisions a New Economic World Order, one that is truly decentralized and democratic. SORA is building to deliver financial inclusion for all without discrimination and providing a better method to manage day-to-day finances.
SORA is an on-chain governance system based around the XOR token that allows producers to make proposals for funding and all token holders make decisions how to allocate XOR so that the best goods and services get created. People who create goods or services should accept XOR for them, thus building the SORA economy.
We believe that inflation is good only if tokens are minted for producing new goods or services.
SORA mechanism is based on the General Quantity Theory (also known as the Disaggregated Quantity Theory of Credit/Money) of macroeconomics:
According to the General Quantity Theory of macroeconomics, a currency could be inflated in three ways:
- for consumption
- for speculation
- for production
Inflating a currency for consumption or speculation leads to price increases and boom-bust economic cycles. Creating money for production can lead to the economic growth at a predictable rate, advancing human development and technology. SORA tokenomics relies on a Token Bonding Curve that helps mitigate boom-bust valuations of most cryptocurrencies, and manages the challenges of not having an elastic supply of capital.
The Case for XOR
XOR is a supranational currency that has its supply and primary market managed by a computer program that runs on a blockchain. XOR is not controlled by any country, company, or individual, and is thus a global economic system designed for the common good of humanity.
To facilitate economic growth, money must be deployed in an economy to create new goods and services. Unlike other cryptocurrencies, such as Bitcoin, countries can make proposals to fund productive investments via XOR allocated from a fund, or from minting TBCD, which is convertible to XOR on the open market, all via an open governance process. This means that XOR does not act as a foreign currency that is outside the control of democratic governments, but rather can be integrated into the domestic economy wherever it is used, to fund nominal GDP growth.
Furthermore, XOR is not a debt-based currency, so more egalitarian social outcomes can be realized, compared to contemporary economic systems, as economic growth is not inhibited to service an ever-growing debt. Thus using XOR as legal tender in countries for discharging debts, purchasing goods and services, and paying taxes, can lead to increased economic growth, because increased productive output can be funded.