TL;DR
- By the end of November, v1 XOR on the SORA v1 mainnet will be converted to VAL
- The conversion factor between v1 XOR and VAL is
0.0628651118561449 - Around the launch of the SORA v2 mainnet, there will be a snapshot of ERC-20 XOR holdings and ERC-20 holders who have control over their private keys will be able to claim VAL on the SORA v2 network. You will never be asked to provide your private key or passphrase to anyone to claim VAL. Never give it away! Always check information in SORA channels!
94.57142857142857VAL will be airdropped per XOR to ERC-20 XOR holders, with 10 VAL airdropped at SORA v2 network launch and the remainder distributed as a portion of the daily burned amount of VAL- We expect the SORA v2 mainnet to launch between January 2021 — April 2021
Background
As part of outlining the vision for SORA v2, we published an article explaining the conversion of XOR from a free-floating token, to one backed by a multi-collateral reserve pool, as well as an article explaining a new validator-incentive token called VAL, that is a reward for those who secure the SORA v2 network.
In September 2020, a referendum was held where the community voted on accepting the SORA v2 tokenomics proposals.
The Will of the People
The SORA v2 tokenomics referendum passed by a large and uncontroversial majority, with 1,674,000 votes for YES and only 70,354 votes for NO. Thus clearly there is broad and popular support of the community for the v2 tokenomics.
This is unsurprising, as the tokenomics proposal was created in consultation over many months with community members and creates quite a lot of value for those who have ERC-20 XOR (as the supply was reduced from 1.6 billion to 350,000 until v2 launch) and for v1 XOR holders, as they will get a new token called VAL that has a deflationary token supply. ERC-20 XOR holders also will receive approximately 1/3 of the VAL token supply, so the initial diversity of VAL holders will be very high, with thousands of token holders. This is great for bootstrapping the SORA v2 ecosystem.
Milestones in Implementing SORA V2 Tokenomics
To implement the SORA v2 tokenomics will take significant development resources. Also, we will release our code in a disabled state and it will need to be enabled using the cryptographic proof of the voting on the referendum performed by the community. So there are many steps that should be performed over the coming months to realize the SORA v2 ecosystem.
By end of November 2020:
- Cryptographic proof of the referendum voting result will be released publicly; this proof will be used to enable the conversion of v1 XOR to VAL on the SORA v1 mainnet and for enabling the bridge to Ethereum
- The quantity of v1 XOR will be reduced from the current amount of
1,617,749,447.94056to539,249,815.980187; this will be done in such a way that regular holders will not be diluted from their proportional holdings when the v1 XOR are converted to VAL, primarily by burning v1 XOR held by some large v1 holders - The v1 XOR will be converted to
33,900,000VAL, by multiplying each account balance by0.0628651118561449 - The VAL ERC-20 bridge contract will be deployed to Ethereum, but in a disabled state. To enable it, one member of the community should provide the cryptographic proof of the referendum result to the contract. In exchange a small reward of VAL will be distributed to the first user that enables the smart contract (to cover gas fees). Once enabled, the contract cannot be disabled.
Between January 2021 and April 2021:
- VAL tokens start to be vested for ERC-20 XOR holders; ERC-20 XOR holders will have to claim on the SORA v2 mainnet
- 2-way Bridge to Ethereum to move tokens between SORA v2 and the Ethereum networks
After April 2021:
- Polkaswap launch
- Provisional VAL DAOs that just provide liquidity to default pairs like XOR-DOT and XOR-KSM will be set up
- SORA Parliament setup (pending upcoming constitutional referendum, tbd)
- VAL DAOs with voting for liquidity provision
VAL Token Claim for ERC-20 XOR Holders
As approved in the referendum, 33,100,000 VAL shall be distributed to ERC-20 XOR holders. While initially the rules for this were not clear and we discussed proposing that some complicated actions be performed by ERC-20 XOR holders, the current proposal is that there will be a snapshot taken and all VAL will simply be airdropped (claimable) over time, without any other conditions.
This means that94.57142857142857 VAL will be given per each XOR in the following way:
- 10 VAL distributed per each XOR at the launch of the SORA v2 mainnet
- VAL vested per day to each XOR, as a remainder portion of the VAL that are burned everyday (burned amount -10% -daily validator reward %).
No other conditions shall be placed upon ERC-20 XOR holders to receive their VAL. They will just need to have control over their private key on Ethereum at the time of the snapshot, so they can sign a message on the SORA v2 mainnet to claim their VAL. You will never be asked to provide your private key or passphrase to anyone to claim VAL. Never give it away! Always check information in SORA announcement channels!
