Sora: A Decentralized Autonomous Economy

Abstract

Money, when viewed as a social construct, can be a powerful tool for organizing society and allocating finite resources. However, existing monetary systems are highly centralized and this centralization has caused many crises in recent times. We therefore propose a token-based economic system that is self-regulating, can adjust the quantity of tokens to provide liquidity as needed, and avoids moral hazards. An early version of this system has been implemented on a blockchain platform as the Sora decentralized autonomous economy (DAE). Through allocating votes in a Sybil-resistant way, the Sora DAE democratically allocates new purchasing power according to open referendums. A dual-token system allows both stability of value for payments and creation of tokens for economic growth.