2.3 Static Token Economy
BORA 1.0 first issued a total of 1,325,000,000 tokens, current total supply is 1,205,750,000 BORAs, and had the plan to distribute and use for various objectives and specified situations.
The key mistake by the BORA Team in the actualisation of BORA 1.0 was that it had overlooked the fact that if the project for the pre-minted token issuance and the subsequent token distribution does not go as planned, then many issues that may arise in the future.
This might make sense if BORA 1.0 was structured as 100% Private Chain, but as pursuant to Section 2.2, if there is a change to the agreed structure and node operation structure, then accordingly, the token economy structure would have to change to be compatible
If BORA 2.0 expects the active participation of a great number of users and as such envisions to develop as a larger ecosystem, then the structure of the token must be fluid so it can be used as systematic rewards to incentivise the users’ involvement and create several partnerships that are based on BORA.
However, it is not easy to expect active participation as mentioned above due to the current static token economy of BORA 1.0. This is due to difficulties in operating by matching the incentive mechanism for the ecosystem participants to the market environment, forming and managing the Eco-Fund required to expedite the growth of the ecosystem and managing the provision of liquidity required for the maintenance of the ecosystem. In other words, it is not easy to increase rewards from participation in the current static token economy structure, and the value of BORA might not quickly increase before the BORA ecosystem sufficiently develops. As such, there are difficulties from many aspects in the formation of the ecosystem through the utilisation of tokens. The fact that Ethereum and Solana, which already has a lot of following development groups, have been avoiding static token structure and operated based on a dynamic token economy clearly shows the limitations of the static token economy.
Further, in BORA 1.0, the BORA Shell that is linked with the standard currency BORA is issued at a fixed rate of 1:1K. This arrangement has the benefit of being simple and quickly processed, but it has limits in handling projects with various service functions and demands.
An environment where individual projects can generate tokens and NFT suited to their purposes and form their own token economy should be provided so that diverse and innovative services can work with BORA. However, in an arrangement where there is a fixed exchange rate, difficulties may arise in issuing tokens for various purposes and optimising this to the service.
As such, BORA Team concluded that the above-described pre-minted token structure and the sub-token structure that is introduced by the fixed exchange rate has to be changed for BORA to develop into a larger ecosystem.