SORA's Token Bonding Curve Dollar (TBCD) Explained

TL;DR: The Token Bonding Curve Dollar (TBCD) is SORA’s algorithmic reserve asset designed to stabilize XOR’s economy. It laid the groundwork for KUSD — the over-collateralized stablecoin of the Kensetsu Platform.

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Understanding the Token Bonding Curve Dollar (TBCD)

The Token Bonding Curve Dollar (TBCD) originated as SORA’s first experiment in algorithmic monetary design — an asset created and valued entirely by the Token Bonding Curve (TBC).
It maintains economic equilibrium by stabilizing XOR’s price, building reserves, and funding development through the Economic Growth Fund (EGF).

TBCD remains an active on-chain asset within the SORA network. It can be traded on Polkaswap, used as collateral on Kensetsu, and continues to function as a governance-controlled reserve instrument tied to the Token Bonding Curve.

Core Properties

• Algorithmic and non-synthetic: TBCD’s value is derived directly from the TBC, which treats it as worth $1 USD.
• Governance-minted: Created only through on-chain referenda approved by XOR holders.
• Economic engine: Used to finance ecosystem projects via the EGF and to expand SORA’s productive economy.
• Self-balancing: When XOR is below the bonding-curve price, TBCD trades slightly under $1, discouraging redemptions and supporting price stability.
• Fee support: Around 0.5–1 % of network transaction fees are allocated for TBCD buyback and burn.
• Tradable: Active on Polkaswap and usable as collateral on Kensetsu.

Although its supply remains limited and governance-controlled, TBCD acts as a monetary buffer that keeps XOR liquidity balanced — the on-chain equivalent of a decentralized reserve.

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From TBCD to KUSD: Evolution of SORA’s Stable Asset

While TBCD proved that algorithmic equilibrium could work, it wasn’t designed as a retail stablecoin.
As the network evolved, SORA extended the concept through KUSD (Kensetsu USD) — an over-collateralized, USD-pegged stablecoin built on the Kensetsu Platform.

KUSD in a Nutshell

• Collateralized borrowing: Users lock assets such as XOR, VAL, PSWAP, TBCD, ETH, or DAI as collateral to mint KUSD.
• MakerDAO-style vaults: Each vault has parameters for collateral ratio, loan-to-value (LTV), stability fee, borrow tax (1 %), and liquidation penalty.
• Peg maintenance: 19.5 % of all network fees fund KUSD buyback and burn (with 0.5 % still directed to TBCD).
• Governance & incentives: The KEN token rewards liquidity providers and governs Kensetsu risk parameters.

KUSD transforms TBCD’s conceptual model into a fully functional DeFi stablecoin, giving users direct access to decentralized borrowing and lending within SORA.

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Inside the Kensetsu Platform

The Kensetsu Platform powers KUSD through vault-based collateral management:

• Vaults manage collateral, debt, and liquidation automatically.
• Stability fees flow into a reserve fund used for peg defense, KEN buybacks, and liquidity rewards on Demeter.
• Supported collateral IDs:
  • XOR 0x020000...0000
  • VAL 0x020004...0000
  • PSWAP 0x020005...0000
  • TBCD 0x02000a...0000
  • ETH 0x020007...0000
  • DAI 0x020006...0000

By including TBCD as one of its collateral options, Kensetsu ties the new stablecoin layer directly to SORA’s original monetary base, ensuring continuity between generations of SORA tokenomics.

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Algorithmic Central Banking in Practice

Together, TBCD and KUSD form SORA’s algorithmic central-banking model:

This system turns SORA into a self-regulating economy where supply, credit, and liquidity adjust automatically — governed by mathematics rather than centralized policy.

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Why It Matters

SORA’s approach demonstrates that stability, credit, and growth can coexist on-chain without custodians or fiat collateral:

• Continuous liquidity: The bonding curve always provides a counterparty.
• Transparent governance: Every mint or burn event is decided through on-chain vote.
• Economic sustainability: Fee-funded buybacks and over-collateralization keep the system solvent.

TBCD, KUSD, and Kensetsu together show how algorithmic finance has evolved from theory into a working decentralized economy.

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SORA’s Broader Vision: A Decentralized Economic System

With SORA v3 migrating to Hyperledger Iroha, the network gains enterprise-grade transparency and scalability for its next generation of DeFi systems.
These improvements strengthen the foundation for KUSD, TBCD, and future SORA assets that extend algorithmic monetary design across interoperable networks.

To explore vault creation or learn more about the Kensetsu system, visit the official SORA Wiki – KUSD & Kensetsu.

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Key Takeaways

• TBCD is an active, algorithmic reserve tied to XOR and the Economic Growth Fund.
• KUSD expands that model into a user-facing, over-collateralized stablecoin on Kensetsu.
• Kensetsu introduces vault-based borrowing, the KEN token, and direct integration with Polkaswap.
• Together they form SORA’s multi-layered, algorithmic economic system built for decentralized growth.

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FAQ

Is TBCD still active?
Yes. TBCD is an active on-chain asset. It can be swapped on Polkaswap and used as Kensetsu collateral, but its issuance and role remain governed by SORA’s on-chain policies rather than free-market minting.

How does KUSD maintain its peg?
Through over-collateralized vaults, stability fees, and a buyback-and-burn mechanism funded by network transaction fees.

What is the KEN token used for?
KEN distributes Kensetsu farming rewards and captures platform value through periodic buybacks.

What role does Hyperledger Iroha play in SORA v3?
It provides a transparent, modular, and scalable foundation for next-generation SORA DeFi infrastructure.

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Related Resources

• SORA Official Wiki - Token Bonding Curve
• SORA Official Wiki - TBCD
• SORA Official Wiki - KUSD & Kensetsu
• SORA Official Wiki - Tokenomics