The creation of new knowledge is the bedrock of Saga. Every facet of our currency is underpinned by thorough industrial scholarship. An interdisciplinary effort, Saga’s papers are authored by leading subject-matter experts, through a rigorous and ongoing cross-pollination of economics, mathematics, and social sciences.
Below we share Saga’s core explanatory documents.
SGA aims to carry the qualities of a true currency; serving not only as a store of value, but also as a means of exchange and unit of account.
To fulfil this promise, Saga seeks to replicate the best features of successful currencies: acceptability for trade, accountability to its holders, and a safeguard against volatility. By following these guidelines, Saga strives to create a monetary model that can be trusted.
This trust is actualised in Saga’s reserve, a concrete measure for the strength of the currency, invested in fiat currencies and held in reputable banks. This reserve bestows a stability previously unthinkable for a digital currency.
In addition, Saga offers a ‘reserve deployment scanner’ which gives holders a high level of transparency as to the exact allocation of their assets, at all times.
SGA price is based on two sources of value:
The fraction of value based only on the reserve is known as the reserve ratio.
The reserve ratio can also be viewed as a measure of market trust in Saga. Here we observe a negative correlation; the higher the trust, the lower the reserve ratio.
Yes. Interest accrued in Saga’s reserve will increase the nominal value of the reserve, thus allowing for a SGA price increase. Hence, any interest gained by Saga’s reserve is fully projected to Saga holders in the form of an SGA price increase.
The resources to build Saga’s core ecosystem are funded from proceeds raised by early supporters and investors, who support Saga prior to the launch of its economy.
They should naturally receive compensation commensurate with their risk. However, high prospects can only come with high volatility; ironically, the exact issue Saga seeks to reduce.
To reconcile this tension, early investors are recompensed not with SGA tokens, but with a different token called Saga Genesis (SGN), a voucher token convertible to SGA. The amount of SGA received per SGN token - the ‘conversion ratio’ - depends on the strength of Saga’s economy: when small, the risk remains high and SGN is lower than SGA; as the economy grows, the price of SGN rises accordingly and surpasses SGA.
Given the nature of blockchain, the Smart Contract is designed to be immutable, in other words, unchangeable. However, for a limited period of time, Saga has selected several functions that can be changed, in order to fix likely errors around the launch.
Planned changes to Saga’s Smart Contract will be announced in advance.
As we develop Saga we find ourselves closely examining the nature of contracts: it becomes clear that currency is only one instance of a contract for the exchange of interpersonal value. In order to properly inform this enterprise, to craft a truly workable monetary model, a broader mindset is required.
To that end, Saga has launched the The New Contract Policy Institute (NCPI), an interdisciplinary effort to redefine and apply updated guidelines for the social exchange of value.
The Institute answers the increasing lag in governance schemes in light of advances in technology and the widening scope of communication.
No. To an outsider, Saga could appear like a bank, since it does invest some funds in traditional banks, in order to anchor the currency, However, it is certainly not a bank.
Saga raises funding for its activities from accredited investors. A diversity of profiles was sought to reflect a variety of expertise. In addition, each investment is capped, to ensure a degree of decentralisation.
Saga Genesis is offered as a voucher token, SGN, to early supporters and investors.
Read more: saga.org/about