The Cryptocurrency for a Global Economy
Sögur is the first cryptocurrency built on the Ethereum blockchain that has the right team and monetary model for legitimate integration and uses in the global economy. This introduction gives an overview of Sögur and how it combines the traditions of fiat currency and cryptocurrency that give it the first real edge on global adoption. To fully understand how Sögur can achieve status as a globally useful cryptocurrency, we must first look at how fiat currencies started and evolved over time.
The US Dollar and the British Pound both started as currencies that were backed by gold held in a reserve by their respective governments. There was once a time when a holder of either currency could return to the central bank of these governments and redeem their notes for the actual gold backing them. This reserve legitimized these currencies, creating trust and faith that the notes would always hold the value they represent. This trust exists even today and has grown substantially over time even as reserve backing has shrunk.
These respective governments, in times of different economic necessity, started printing more notes than there was gold backing them. These currencies are no longer backed by gold. The U.S. Dollar has gone on to be a standard currency in the world economy. This has allowed for stability over time as well as the growth of value. Yet, the Dollar remains subject to events and policies that happen within national borders and is administrated by a central authority.
Sögur eliminates those nation-state risks and seeks to achieve the following:
- Dependable value
- Effective governance
- Public acceptance
Sögur is a fractional reserve cryptocurrency that is initially backed in value by various fiat currencies and stable coins. SGR will begin gradually reducing the reserve until it holds its value in the market based on the same principles as government-issued currencies: faith, trust, and value. As the market cap grows, a smart contract will buy and sell SGR at prices that limit market volatility by arbitrage. The smart contract sells at prices that entice arbitrageurs to buy or sell from the contract, thus minting or burning coins in the market cap and keeping the price stable. As the market cap of SGR increases so does the price band while reducing the reserve. Conversely, if the market cap drops, the smart contract will narrow the price band and increase the reserve. Automation through a smart contract creates transparency and impartiality. This allows for stability as well as market-driven value opportunities. See the monetary model article in this collection for a deep dive into how low volatility is achieved.
SGR has been designed with both regulation and decentralization in mind. It achieves decentralization by existing on the public Ethereum blockchain. Regulatory goals are achieved by following Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures preemptively at the smart contract level. SGR does not intend to be a replacement of currency, rather an addition to the global economy that can integrate with regulation seamlessly while being decentralized.
SGR is governed by economic experts elected by SGR holders. The management of an economic instrument requires knowledgeable individuals. Professionals. Governance will unfold in stages as the currency involves. A provisional constitution is in place to establish norms and policies with SGR holders as the key stakeholders.
With committees made of economists and scholars and a smart contract that can respond with precision to the SGR market, this blockchain coin is the first that is a real contender for becoming as commonly used globally as the US Dollar. Learn more about SGR by reading further into the articles of this collection and of course visit the website at sogur.com .