SORA Parliament Funds Management Referendum

TL;DR

  • The SORA Parliament will get funds from 3 different revenue streams, as well as the VAL token initial mintage
  • Because the SORA Parliament will not be fully operational for awhile, it is proposed that revenue streams will go to pay for the development until the Parliament is operational
  • It is also proposed that the SORA Parliament’s VAL token holdings from the initial VAL mintage will be allocated to be put in an investment fund. This fund will require the SORA Parliament (or community in the interim) to approve or reject every investment or allocation from the fund

SORA Parliament Funds

The SORA Parliament has the following revenue streams:

  • 0.5% of the XOR value bought from the token bonding curve (as a re-mint)
  • 10% of daily burn of PSWAP (as a re-mint); the burn is 0.3% of swap transactions
  • 10% of daily burn of VAL (as a re-mint); the burn is 50% of each network transaction fee

The figures below show the cash flows of the SORA Parliament (note: VAL cash flow works the same as PSWAP).

The SORA Parliament will get 10% of the daily re-mint of PSWAP and VAL tokens.

Additionally, the Parliament has approximately 33 million VAL tokens.

Setting up the SORA Parliament so that it is fully operational will take time, so in the interim to make sure development continues and that investment opportunities for the ecosystem are not missed, it’s proposed to allocate the SORA Parliament’s 3 revenue streams to Soramitsu Helvetia AG, in exchange for continuing to contribute source code for the SORA apps and ecosystem. Once the SORA Parliament is fully operational, then use of the funds can be revisited and new development agreements created as needed.

Additionally, the approximately 33 million VAL of the SORA Parliament is proposed to be allocated to an investment fund that will be set up, such that the fund manager will sign an agreement that only with the approval of the SORA Parliament, or, in the interim, the SORA community, will investments be made. The fund is proposed to be set up in Japan and/or Singapore and will be targeting equity investments, loans, and grants for promoting the SORA ecosystem. The fund will hire a professional manager to do find investment opportunities and do due diligence. As needed, more staff can be hired as well, although at the beginning it is not anticipated that a large team will be required. After due diligence of investments is completed, the manager will propose the investment opportunity to the community, explaining the pros and cons for the ecosystem. Then the community will vote to decide to invest or not. After the SORA Parliament is set up, voting will be done by sortition. Until then, token voting using XOR will be done using voting features on the Substrate-based SORA network.

Ratifying the SORA Parliament Funds Management Referendum

Starting on March 27 and continuing until March 30, 2021 23:59 UTC, the community will be asked to vote on ratifying the proposals for the initial allocation of the SORA Parliament’s funds.

If the referendum does not pass, then that indicates a disagreement about the use of the SORA Parliament’s funds and this will have to be solved by discourse amongst the community. This means that investment into development and the SORA ecosystem may take more time than anticipated.

For the sake of clarity, here is a list of anticipated pros and cons for the referendum passing and failing.

If the Referendum Passes:

Pros:

  • Development will be certainly provided for until the SORA Parliament is fully operational
  • Given the dynamics of the current crypto market, the SORA ecosystem will be able to take advantage of opportunities by investing in corporations and expanding the ecosystem

Cons:

  • By allocating funds now, in the future the SORA Parliament will have to build up, raise, or mint funds if needed

If the Referendum Fails:

Pros:

  • The SORA Parliament will have more funds on hand to allocate when it starts up

Cons:

  • Development may continue, but without clear funding, resources will be limited
  • If good opportunities for investment present themselves before the SORA Parliament is fully set up, the ecosystem may not be able to take advantage of these opportunities. It takes time to set up a company that can act as a fund, so waiting until the SORA Parliament is fully operational will likely delay the ecosystem growth

Referendum Text

We, the SORA community, are united in thought and mind to collaborate together to allocate the SORA Parliament’s revenue streams to Soramitsu Helvetia AG, as well as to allocate the approximately 33 million VAL that is allocated to the SORA Parliament to set up a company that can act as an investment fund for the ecosystem. The following articles represent the key points in ratifying the fund allocation proposals, and by voting YES on this referendum, we together as a community officially accept the realization of the contents of the following articles. However, we as a community may also reject the articles by voting NO on this referendum.

May the will of the majority come to pass.

Referendum Articles

Article 1. The SORA Parliament has the the rights to 0.5% of the value bought from the token bonding curve, 10% of the daily burn of PSWAP, and 10% of the daily burn of VAL. All of these tokens are provided to the SORA Parliament as a re-mint. Until potentially changed upon the full operability of the SORA Parliament, the community votes to give Soramitsu Helvetia AG these funds to use as they see fit, without any restrictions whatsoever. In exchange, Soramitsu Helvetia AG agrees to continue to support SORA apps and ecosystem development until the SORA Parliament is fully set up and may change development support terms.

Article 2. The SORA Parliament is scheduled to receive approximately 33 million VAL tokens upon the launch of the SORA v2 network. Rather than waiting for the SORA Parliament to become fully operational, the community votes to allocate these approximately 33 million VAL tokens to a company that will act as an investment fund for: equity investments, loans, and grants. Use of these funds is restricted so that every outflow should be voted on by the community and approved until the SORA Parliament is set up. After the SORA Parliament is set up, every outflow from the company should be voted on and approved by the SORA Parliament in accordance with the rules and regulations of the Parliament. For the sake of clarity, it should be noted that SORAMITSU Helvetia AG or other SORAMITSU group companies will not receive these VAL, unless the community votes to allocate to SORAMITSU or related companies in the future.

Article 3. All executable deliverables (software, smart contracts, etc.) shall be released in a disabled form and enabled using cryptographic proof of the result of this community vote.

Article 4. Even though Soramitsu Helvetia AG will receive revenue streams from the SORA ecosystem, the community recognizes that the software for the SORA and Polkaswap ecosystems are being provided without any warranty or implied usefulness for any purpose and that Soramitsu Helvetia AG and every other entity and individual that may have contributed to the source code and technology will not have any responsibility for losses caused by malfunctions or hacking of the software, neither will Soramitsu Helvetia AG and every other contributor have any responsibility for any actions whatsoever that users of the SORA and Polkaswap apps do of their own volition.

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SORA is working to become a decentralized world economic system, under the democratic supervision of the SORA Parliament. One World. One Economy. SORA.

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SORA is working to become a decentralized world economic system, under the democratic supervision of the SORA Parliament. One World. One Economy. SORA.

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