SGR provides a simple method for exchanging value internationally without the need to operate in multiple currencies. That makes it easier to trade everything in the world.
The expanding reach of global trade, production and investment increases the need for a worldwide medium of exchange, which SGR aims to respond to. Sögur is not tied to any particular region or state. Therefore, it does not have direct contact with the concerns, interests or conditions of any place or government. It aims to provide the safest way to provide related services or money to users and whoever they are! So what is Sögur’s currency model?
Sögur currency model
The purpose of Sögur’s monetary model is to ensure that the SGR becomes a fully independent and official currency. To achieve this, there must be a sufficient degree of stability in the SGR value; No one will accept SGR as a means of payment if its value fluctuates excessively. On the other hand, there is an inherent tension between this goal and another monetary function: the store of value. A store of good value is likely to be appreciated and clearly reflect the strength and usefulness of that currency.
Sögur’s monetary model aims to balance these opposing elements of stability and growth. The purpose is not to force SGR values to be static but to correct price volatility so that they react to economic forces, not just market speculation.
It will take time for Sögur’s coin to gain credibility in the public eye. In order to support the currency, the tokens are backed by a reserve held in major fiat currencies.
SGR Liquidity
The Sögur coin includes a mechanism to provide liquidity, which is intended to reduce the impact of market forces as they induce fluctuations in SGR value. Sögur’s blockchain smart contract offers to sell new SGR tokens at all times, with the asking price determined by Sögur’s currency model. In contrast, the agreement contributes to buy back and destroy SGR tokens at the bid price of their model.
Reserve ratio
The reserve ratio is defined as the ratio of the market value of SGR supported by Sögur’s reserves. It represents 5 levels of confidence that the market places in the SGR coin, 5 levels independent of the backing reserve.
As the SGR price increases, all tokens are traded under the new pricing, even though some of the initial tickets are issued at a lower price. The result is Sögur reserves — cumulative net proceeds from the issuance of SGR tokens.
Adjust interest rates and prices
Sögur reserves are held at major banks where interest rates accumulate. The accumulated net gain on the budget will be reflected as a corresponding change in the value of the SGR.
It can be said that, although Sögur has not developed widely, it has a formal and complete monetary model. It analyzes the purpose as well as the possibility that it will happen in the future. Of course, there will be articles for further analysis. Please wait to read it!
Visit Sögur website here: https://www.sogur.com/
