SORA (XOR) could be the world’s most arrogant decentralized finance (defi) organization. SORA arrogantly calls itself a “New World Economic Order.”
For example, they claim SORA is a “supranational economic system based on the Disaggregated Quantity Theory of Money” that aims to be “a catalyst for advancing humanity.” They even held two SORA Economic Forums to promote SORA’s ideas.
SORA is an on-chain governance system they base on the XOR token. Strangely, the SORA team believes that inflation is good. Hence, SORA is an inflationary token. To explain, an inflationary token is a cryptocurrency they can mint unlimited amounts of.
They claim you can drive economic growth by making money, a dubious claim. The belief is you can always have enough money to pay for everything by printing more money. Hence, SORA’s creators buy into a variation of Modern Monetary Theory (MMT), the macroeconomic idea critics call the “Magic Money Tree.”
IS SORA a New Economic System?
To create inflation, they mint XOR and allocate it to producers of goods and services. An organization called the SORA Parliament allocates capital. This means SORA is a decentralized autonomous organization (DAO), which is hardly unique or new.
Arrogantly, they claim the SORA Parliament provides supranational global governance. How SORA can provide this without military force is beyond me, but they think it can. Remember, the US dollar’s status as reserve currency rests on American military might.
They claim a token bonding curb (TBC) automatically manages SORA’s token supply rationally. The TBC is a smart contract that creates a new token when they input a token. SORA’s TBC can execute buy-price and sell-price functions. SORA’s builders think the TBC can prevent boom-and-boost cycles.
The TBC determines the price of SORA (XOR) based on the current supply. It imposes bid/ask prices in secondary markets exchanges. They claim the TBC creates an infinitely liquid and decentralized central bank. XOR holders can use their tokens to buy newly minted XOR or sell XOR any time using reserve assets.
They claim the TBC creates autonomous management of token supply to match demand or an elastic supply. Hence, there is always enough XOR available to finance economic growth. A bonding curve contract provides deep and immediate liquidity.
They claim XOR’s decentralized monetary policy is resistant to abuse by authorities. For example, the SORA v2 monetary limits the ability of governments and short sellers to manipulate the market.
The SORA Ecosystem
They built SORA as a Parity Substrate standalone blockchain. Parity Substrate is yet another build-your-own-blockchain solution that competes with Ethereum. Parity claims they can create light client first designs for mobile applications and the internet-of-things (IOT). They claim you can upgrade the Parity Substrate chains without forks.
SORA can operate as a parachain on both Kusama and Polkadot. A parachain is a custom blockchain that can connect two blockchains. For example, Kusama and Polkadot and SORA and Polkadot. Or SORA and Ethereum.
They claim SORA can offer Kusama Parachachain Crowdloans. They are developing a SORA Wallet Mobile App.
The SORA Ecosystem uses seven tokens. XOR is the utility and governance token used for fees and gas in the SORA network. VAL is a utility and governance token they reward validations in the SORA network with. Interestingly, they create VAL by community governance.
PSWAP is a utility and governance token that rewards liquidity providers on Polkaswap. XST is a platform that creates synthetic assets on SORA. They claim XST can collateralize assets online that they link to off-chain indexes of DeFi tokens.
SORA Synthetic USD (XSTUD)
The SORA Synthetic USD (XSTUD) is an algorithmic stablecoin linked to DAI. XSTUD pays in US Dollars when you spend it. As an algorithmic stablecoin, XSTUD gets dollars from an ecosystem. For example, XSTUD gets dollars from the DAI ecosystem. In contrast, stablecoins like Tether (USDT) release dollars from accounts when you spend them.
On 21 November 2022, CoinMarketCap gave SORA Synthetic USD a 99.48₵ Coin Price, a $995,144 Market Cap, a $556.630 Fully Diluted Market Cap and a $2.621 million 24-Hour Market Volume on 23 November 2022. SORA Synhthetic USD also had a Decentralized Exchange (DEX) volume of $2.629 million on 21 November 2022.
They base those numbers on a self Reported Circulating Supply of one million XSTUD and a Total Supply of 559,363 XSTUD. SORA Synthetic USD was CoinMarketCap’s 2,669th ranked cryptocurrency on 23 November 2022.
CERES is a utility and governance token they reward liquidity providers with on Polkaswap. DEO is another utility and governance token they reward liquidity providers with on Polkaswap.
All these tokens function on the SORA ecosystem to provide liquidity. SORA can work with all these tokens because it uses Polkswap as its decentralized exchange (DEX). Polkaswap is a non-custodial Automatic Market Maker (AMM) DEX. That means other platforms, such as SORA, hold the assets held on Polkaswap.
What Value does SORA (XOR) offer?
Mr. Market thinks SORA (XOR) offers some value. For example, CoinMarketCap named XOR its 792nd ranked cryptocurrency with a $4.01 Coin Price on 23 November 2022.
CoinMarketCap gave SORA a $7.140 million Market Cap, a $1.627 million Fully Diluted Market Cap, and a $2.934 million 24-Hour Market Volume on 21 November 2022. They base those numbers on a Circulating Supply of 1.779 million XOR and a Total Supply of 406,855 XOR. SORA had a $24,805.84 Centralized Exchange (CEX) Volume and a $2.908 million Decentralized Exchange (DEX) Volume on 23 November 2022.
In contrast, CoinGecko gave SORA a $3.94Coin Price, a $7.014 million Market Cap, a 24-Hour Trading Volume of $3.057 million, and a Fully Diluted Valuation of $7.014 million on 23 November 2022. They base those numbers on a Total and Circulating Supply of 1.779 million XOR. SORA was CoinGecko’s 962nd ranked cryptocurrency on 23 November 2022.
Despite its arrogance, I think SORA could be a useful defi protocol with some true value. SORA could true value because its system works with other tokens and builds a US Dollar stablecoin. The US Dollar is the world’s reserve currency and the most popular fiat currency. Hence, somebody at SORA understands how economies and markets work and wants to make money.
I consider SORA a token to watch. I think SORA could gain some value if somebody uses it for trading or e-commerce. Until that happens speculators need to watch, but not buy SORA (XOR).
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