SORA's Token Bonding Curve (TBC) Explained

"The Automated Decentralized Central Banking Machine"

What if you have been told that there might be a better and smarter solution to fulfill the purpose of central banks in a much more economical and trustless way?

Shortly about SORA - (XOR token)

SORA is a supranational world economic system that decentralizes the concept of a central bank and provides a better democratic method to manage day-to-day finances.

Part 1 - Traditional Economic background

One of the most difficult roles of central banks has always been managing the money supply of its country.

When it is not stably and accurately managed, it can create - Inflation, deflation, stagflation, or brutal credit bubbles.

Throughout history, we have seen an infinite amount of failures, in some desperate attempts to control this very tricky problem called money supply.

Some of the popular solutions offered by central banks are:

• printing money
• raising interest rates
• lowering interest rates
• printing more money

Everything is managed and supervised by either public or hidden orders of a government.

While central banks have been printing money mainly for existing assets or unnecessary consumption, we know in fact that this way has led us to suffer from cruel inflations and asset bubbles over the years.

The main reason why this method is failing over and over again must be human nature.

Where money is involved, it is clear that humans have always been found to be:

Corrupted, selfish, wily, and greedy.

Most of the time they are managed by emotions and self-interest.

Today, as technology exceptionally improves, we are facing a new era.

A new era where codes are able to replace humans, in a decentralized and trustless way.

A new era where anything can run by computer codes through blockchains and mathematical results.

First, it was the Bitcoin invention - a very oiled blockchain machine.

Later on, we were able to encode anything we could imagine into smart contracts.

And from that point, SORA's Token Bonding Curve comes into play!

Part 2 - SORA's Token Bonding Curve (TBC)

TBC is a very smart contract with a clear goal to solve this issue.

When market demand is high - it's pushing new money into circulation. When market demand is low - it's destroying it.

All by using an elegant mathematical formula based on simple economic rules.

No human manipulations are involved.

TBC is set by a completely predictable mathematical formula, simply calculated.

It will be able to issue and destroy tokens based on economic market conditions.

When XOR price will reach a certain level (it is set to 600$) - TBC will be activated.

As outlined at WikiSORA - from that point TBC will increase the XOR price by 1$ only for every 1337 new XOR that will be minted, and it will decrease the XOR price by 1$ only for every 1337 XOR that will be burnt.

This leads us to finish with the following three main purposes of the TBC and their huge positive impact on the economy:

Number 1- Price Stability

TBC is making sure that XOR prices will always be predictable and moderate.

That's very efficient for payments. It means that merchants, businesses and countries will be more likely to accept XOR as a payment mechanism.

Polkaswap.io has already integrated the TBC as its primary market maker.

Number 2- Dynamic Supply

TBC is representing the whole idea of a stable mathematical economic cycle using this kind of

dynamic supply.

This flexible mechanism is the main factor for economic growth (when used wisely).

Number 3- Money Allocation

TBC as we have learned, issues money by price demand changes, at a very moderate pace.

That’s the ONLY way for new XOR to be issued so it can NEVER be printed by human or entity, but solely by the market demand.

That prevents boom and bust cycles, increases GDP, and makes healthy economic growth.

If you like that idea you can also read the second “Manipulation Killer Tool” called:

SORA Governance: The Wisdom Of The Crowds.