Saga starts onboarding process for its ERC-20 token
November 27, 2019, 11:03AM EST
1 min read
Saga Monetary Technologies announced today that it will launch its Saga token (SGA) on Dec. 10, with a full onboarding process now accessible on its website.
Saga is the brainchild of a group of economists and finance experts, including Economics Nobel laureate Myron Scholes and JPMorgan Chase International Chairman Jacob Frenkel, who now serves on the company’s advisory board. It is backed by Lightspeed Venture Partners, Mangrove Capital Partners, Vertex Ventures, and others who participated in its $30 million seed funding in 2018. The company claims that its new ERC-20 token is fully compliant with the ERC-20 token standard as well as global regulatory frameworks.
The goal of the company, according to a press release, is to build a stabilized currency for global usage. SGA will be fully backed by a group of national currencies at the time of its launch in order to reduce price volatility, but the reserve ratio is expected to gradually decrease as market trust grows and pricing becomes more stable. According to Saga’s Monetary Model, the Saga Contract will act as SGA’s liquidity provider and make sure its value is within the pricing model's range. SGA will be bought from the Contract until the model’s ask price matches the secondary market price, the report explains, which will allow for self-regulation of the money supply.
These mechanisms will differentiate SGA from simple fiat-backed stablecoins, according to the press release.
“Participants will be the Saga economy's sovereign decision-makers through a number of governance mechanisms,” the press release says. “Combining fair representation with effective administration will help ensure reliable governance of the project, ultimately increasing user trust in SGA.”