SIGMA Standard |σ|

Posted on Oct 26, 2022Read on Mirror.xyz

Crypto Needs Its Standard Currency

https://docs.google.com/presentation/d/1vZlAX8KQgsB7zFG9sdGDW0RyqO7V7cgxp3h-0L90KTI/edit?usp=sharing

A Short Introduction

Purpose: A crypto-native stable currency for the industry.

Problem: USDT, BTC, and ETH Standards do not reflect the industry's underlying productivity, and the industry's currency fails as the unit of account.

Process: the most desirable way is to establish a unit of account standard

Conception: If one would want to reflect the underlying productivity of the industry, one should look for the raw materials of the industry's production process, not the downstream tokens that are being processed.

Current circumstance: The streamline of the Crypto industry is to hire people with U, form trading pairs with U, BTC, and ETH, generate narratives to provide services, and then exchange the money to BTC and ETH. All other tokens form trading pairs with BTC, ETH.

Solution: A weighted average index consists of BTC, ETH, and U would best reflects the industry's productivity.

Motivation

We believe this is a healthier Cryptocurrency system that promotes the stability of the industry's production process, instead of utilizing the stability of the fiat currency exchange rate. And it should be noted that the strength of the fiat currency exchange rate is an illusion: the first is that it cannot simulate everyone's preference, which would disrupt the production process; the second is that the Federal Reserve provides this illusory sense of stability, a monopoly that is not the problem, the problem is that the power of monopoly is abused.

The token ecosystem of the industry today is a competition for cheap money-whichever is more affordable and easily accessible-is welcomed by everyone. Cheap is expensive-the power of currency is being abused.

Methodology

The question then is how to define the success of Sigma, how to acquire users, and how to face the competition.

Key Indicators of Sigma

The first key indicator of Sigma's success is the actual demand for the public to hold σ, not the market to borrow. The problem we focus on is how to promote the productivity of each DAO, the efficiency of their governance, operations, and trade, being the actual need.

The side indicator of how to describe this being actual demand is the interest rate of σ. The interest rate is the price of money, and σ will not become increasingly cheap because of competition; its attractiveness also lies precisely in itself being expensive.

How Sigma acquires users

Why 2DAO and not 2C?

The average speculative user needs the most liquid currency, which is used the most by the people around them, and it is natural to choose U, which is the best currency at the moment. But for productive organizations/individuals, U is one of the assets of an allocation, and they value the optimization of the process of inputting factors of production for reproduction.

Our conversion of core users is in three stages.

Stage One: Promote governance efficiency-bookkeeping using σ to assess the operation metrics of projects and communities.

Stage Two: Promote operational efficiency-use σ for daily transactions, i.e., being part of the ongoing operation.

Stage Three: Establish σ Standard accounts. Use σ as a reserve asset, i.e., incorporate it into transaction pools.

This requires the development of ecosystem applications. The story of applications around Sigma Index increases the efficiency of more DAO, creators creating value. These are based on the fact that Sigma Index is sufficiently simple, mathematically stable, and valid.

It is necessary to do specific things one by one to take root.

How Sigma Faces the Competition

If one would want to compete with Sigma, Sigma would respond in two general directions.

To be different from the Sigma Index, the competitor needs to formulate a better index than the Sigma Index, reflecting the productivity of the industry better, which objectively speaking, cannot be found as Sigma Index is already the simplest.

Suppose it is the same as the Sigma Index. If the competitor does not serve the value-creation process of DAO, then it cannot win over Sigma. If it assists the value creation process of DAO and does specific things together, then it is on the same route as Sigma. if one believes in it, he is a family, and if he doesn't, he can't compete with us.