RESOURCES

The creation of new knowledge is the bedrock of Saga. Every facet of our currency is underpinned by thorough industrial scholarship. An interdisciplinary effort, Saga’s papers are authored by leading subject-matter experts, and a rigorous and ongoing cross-pollination of economics, mathematics, and social sciences.

Fundamentals

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Whitepaper

The cornerstone of Saga’s mission. Here we establish the project’s Raison D’Etre, outline the historical context, and declare our ambition. The paper provides an overview of the underpinning mathematical models and announces the technologies that will drive Saga’s economy.

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Provisional Constitution

The provisional constitution states Saga’s essential framework of rules and norms. It delineates how the Participants’ sovereignty is legally and structurally established. The Provisional Constitution will serve Saga until a permanent constitution is ratified by Saga’s Assembly - a governance entity defined in this document and scheduled to be set up within 24 months following the launch of the Saga currency.

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Monetary Model

The guidelines that inform the governance and growth of Saga’s currency. Saga proposes an optimal approach for building organic, sustainable value. A comprehensive rationale for our models, exploring key scenarios to demonstrate the thinking behind this carefully-crafted model.

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Governance Model

Saga’s Participants require a governance system for exercising their sovereignty over Saga. This document presents the intended governance model and describes its seven main features. It also presents the fundamental principles and values that are the basis of the model’s design.

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Executive Summary

Accessible to a broad audience, this short document clarifies the key features of Saga. Focused on what makes Saga stand out, here we highlight key personnel from Saga’s advisory board, leading executives, and prominent investors.

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Governance Summary

A new era for money brings about new needs in financial governance. The executive summary presents Saga’s governance model in a nutshell including its most fundamental values, the way it utilizes blockchain technology, and its basic outlay.

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Kanso Labs Audit

Security is one of our main concerns. Saga’s smart contracts have successfully gone through three independent security audits. As part of Saga’s transparency policy, we are proud to present the full reports of our audits for your review on our website.

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SmartDec Audit

Security is one of our main concerns. Saga’s smart contracts have successfully gone through three independent security audits. As part of Saga’s transparency policy, we are proud to present the full reports of our audits for your review on our website.

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Zerion Audit

Security is one of our main concerns. Saga’s smart contracts have successfully gone through three independent security audits. As part of Saga’s transparency policy, we are proud to present the full reports of our audits for your review on our website.

An Asset-Backed Currency

Participants can both buy and sell SGA directly from Saga’s smart contract - acting as a market maker. For direct purchase of SGA, Participants, registered SGA Holders, send funds to Saga’s smart contract, where they are kept as part of the variable reserve of conventional currencies, hosted by reputable banks. The primary purpose of Saga’s reserve is to ensure Participants can sell SGA; the contract will always offer to buy SGA, drawing on funds from the reserve.

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Restrained Price Volatility

SGA’s price reflects  market demand which would (naturally) fluctuate over time. However, price volatility is moderated by the interplay between the money supply and the reserve; when  buying and selling SGA, Saga’s smart contract adjusts the money supply to meet market demand. Therefore, the reserve acts as a buffer, limiting the impact of market fluctuations.

In practice, when the economy expands, the contract increases SGA supply, slowing price appreciation. Conversely, when Saga’s economy shrinks, the contract reduces the money supply, thereby curbing any large drops in SGA price.

Within the range set by the contract’s bid and ask prices, Saga operates a price band. When the price in secondary markets deviates from the price band, the contract intercedes, altering the supply of SGA. The price band is designed to limit price volatility, while allowing the secondary market to freely set the price within the band. The width of the price band is designed to increase as Saga’s economy matures, allowing the secondary market to exert increased influence.

In practice, when the economy expands, the contract increases SGA supply, slowing price appreciation. Conversely, when Saga’s economy shrinks, the contract reduces the money supply, thereby curbing any large drops in SGA price.
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Fractional Reserve

SGA price is based on two sources of value:
(i) its variable reserve backing of conventional currencies
(ii) inherent value

The fraction of value based only on the reserve is known as the reserve ratio.

The reserve ratio can also be viewed as a measure of market trust in Saga. Here we observe an inverse relationship: the higher the trust, the lower the reserve ratio.

Saga’s reserve-based value is a stabilising factor. While stability is prized, the limitation is clear: in a fully backed currency there can be no price appreciation.

The internal value of a currency is prone to volatility: it can both rise and fall, reflecting the strength of the economy it represents.
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Stability & Growth

This delicate balance, the interplay between reserve and inherent value, should be managed to allow SGA price to grow along with its economy, while controlling volatility.

When the economy is small-and the inherent value is especially volatile - Saga applies a high reserve ratio, supporting stability. As the economy grows and volatility decreases, Saga’s reserve ratio decreases in tandem, encouraging growth in SGA price.

Saga’s price volatility is always restrained-a substantial cash flow is needed to dramatically alter SGA price. When the economy is small, the high reserve ratio protects it. When the economy is large and the reserve ratio is low, its sheer size ensures stability.
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Counter Cyclical Measures

Should Saga’s economy shrink, the contract will deliberately increase the reserve ratio.

This enhances the volatility-restraining mechanism, acting as a counter-cyclical boost to the economy. A higher reserve ratio will alleviate panic, and help stimulate a recovery.