Sora team has written many articles in great detail on Medium. This is my distillation of that information purely from gains perspective.

First is understanding the various tokens involved in the ecosystem as of now.

XOR (天) Used for transaction fees (gas) on the SORA Network like ETH on Ethereum Network. Elastic supply, managed by a token bonding curve. Enables holders of a certain amount to become a citizen and member of the SORA Parliament.

VAL (≚) Used to reward validators on the SORA Network 100 million initial supply; decreasing supply over time, with tokens burned with every SORA v2 network transaction Elastic rewards to validators and stake nominators are given in VAL Holders receive a part of the XOR created by the token bonding curve to provide liquidity on Polkaswap. VAL holders can group together into DAOs to pool their liquidity and vote to provide liquidity to trading pairs on Polkaswap and receive PSWAP tokens as a reward

PSWAP Used to reward liquidity providers on Polkaswap Decreasing supply, with tokens burned with every token swap on Polkaswap Governance and token details to be explained in a future article

The Bullish Case for XOR

1. Polkaswap

Polkaswap is the next generation AMM DEX which has all the missing ingredients to become a leading DEX and it is being built on the Sora network, XOR will be the gas on Polkaswap !. Read my thoughts on this here.

Now if you have read that, I can say that its not hard to see polkaswap doing at least a sushiswap i.e. attract 1 billion usd in liquidity. Quite Possible imho.

Now Polkaswap is being built on the Sora Network and thus the primary liquidity token is going to be XOR. Imagine XOR-KSM, XOR-DOT like like we have 50%ETH-50%Token pairs on uniswap and other dexes.

To attract liquidity Polkaswap will provide $PSWAP token to LPs. So when the liquidity does move to Polkaswap they would all need XOR i.e. 50% of all the liquidity would be in XOR. Thats huge.

The starting supply of XOR is only 350K and then managed by the bonding curve after the network launch. So LPs would either be buying XOR from the current holders or through the bonding curve.

Bonding Curve - Manages the token suppply, As the supply increases the price of the token goes up. So XOR value goes up as the use case goes up. The bonding mitigates liquidity risk to a great extent. The amount deposited in the bonding curve to buy XOR acts as a reserve so that when you need to sell, it can liquidate those reserves to buy back your XOR at a known price. Its basically a smart contract with BUY and SELL function. You can always get an exit.

I highly recommend watching this video to understand more about bonding curves.

2. VAL

All current XOR holders would be airdropped 95VAL/XOR around the time of the network launch (Dec 20-Mar 21). Snapshot date to be announced soon. VAL holders can form VAL DAOs. These VAL DAOs will receive a portion of the XOR from the bonding curve for liquidity provision. These DAOs would use that XOR to provide liquidity on polkaswap and earn $PSWAP which will be shared in proportion to the VAL holdings of each member in the DAO.

*In short: XOR gives you VAL and VAL gives you PSWAP **

**3. Defi on Sora **

Sora network is a blockchain suited for building defi apps. Because of high transaction throughput and low costs it excels at providing tools for decentralized applications that use digital assets, such as atomic token swaps, bridging tokens to other blockchains, and creating programmatic rules involving digital assets.

I think Polkaswap is just the beginning, the first piece of the puzzle and a key one at that. It won't stop there. We will see a barrage of DeFi apps on the Sora network, all of them requiring XOR thus skyrocketing its demand and thus the price along the bonding curve.

4. Soramitsu

SORAMITSU is the organization building the Sora network and Polkaswap. They are a Japanese technology company delivering blockchain-based solutions for enterprises, universities, and governmentsThey have deep integrations withing the crypto space and outside. Here are some of the projects they have delivered besides the Sora network which is currently under development.

1. Hyperledger Iroha - A next generation permissioned blockchains for enterprises.
2. Bakong - A CBDC (Central Bank Digital Currency) project with National bank of Combodia
3. BCA - Tested a self sovereign identity solution for companies in with BCA (one of the leading coomercial banks in Indonesia)
4. D3A Ledger - Soramitsu and the central securities depositories of Slovenia (KDD) and Russia (National Settlement Repository of Moscow Exchange Group) are collaborating on D3, The Decentralized Digital Depository.
5. Byacco - First local blocchain based digital coin for the university of Aizu, Japan.

So they can deliver. Check.

5. A Fair Launch

The team holds no $XOR. None.