SORA's Token Bonding Curve Dollar (TBCD) Explained

SORA’s Token Bonding Curve Dollar (TBCD) was the first major experiment in algorithmic monetary design for the SORA economy, tying a reserve asset’s value directly to SORA’s token bonding curve.
This article is for DeFi users, governance participants, and researchers who want to understand how TBCD, KUSD, and the Kensetsu Platform fit together as layers of a single economic system.

TL;DR

TBCD is SORA’s algorithmic reserve asset whose value is maintained by the token bonding curve and governed via on-chain referenda.
It helped build reserves, support ecosystem funding, and provided a foundation for KUSD — the over-collateralized stablecoin of the Kensetsu Platform.
Kensetsu extends this design into vault-based borrowing, using KUSD and the KEN token to manage risk and incentives across the SORA DeFi stack.
Together with SORA v3, which is being developed on a Hyperledger Iroha–based hub chain and tested on the Fujiwara environment, these components aim to create a self-adjusting, on-chain economic system.

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 remains tradable on Polkaswap, usable 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% of network transaction fees are allocated for TBCD buyback and burn, alongside KUSD and other fee destinations in SORA’s tokenomics.
• 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.

From TBCD to KUSD: The Evolution of SORA’s Stablecoin Layer

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.

In practice, this means TBCD operates as a governance-controlled reserve inside the token bonding curve, while KUSD sits “one layer up” as a user-facing stablecoin backed by vault collateral.
Kensetsu connects these pieces so that fee flows, collateral design, and buyback mechanisms can reinforce the broader SORA economy rather than relying on custodial or fiat-backed models.

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 governs Kensetsu’s risk parameters and rewards liquidity providers.

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

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.

Algorithmic Central Banking in Practice

The three tokens below represent distinct but interconnected layers of SORA’s monetary system:

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

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.

SORA’s Broader Vision: A Decentralized Economic System

With SORA v3 — being developed on Hyperledger Iroha 3 — expected to introduce enterprise-grade transparency and scalability for its next generation of DeFi systems, the network is gradually evolving through ongoing research, testing, and audits.
These improvements are expected to strengthen the foundation for KUSD, TBCD, and future SORA assets that extend algorithmic monetary design across interoperable networks, subject to successful validation on environments such as the Fujiwara testnet.

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

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.

Related Resources

Soranauts – SORA Ecosystem Explained
SORA Official Wiki - Token Bonding Curve
SORA Official Wiki - TBCD
SORA Official Wiki - KUSD & Kensetsu
SORA Official Wiki - Tokenomics