The Saga Foundation, a Swiss non-profit established last year, is planning to create “the first non-anonymous blockchain-based low-volatility digital currency” called Saga (SGA), Quartz reported.
To ensure low volatility, Saga will employ methods from traditional finance. It will use a fractional reserve method (similar to what banks use) and deposit reserves in regulated banks.
Further, Saga will be pegged to the IMF’s Special Drawing Right (SDR), an international reserve asset that is comprised of a basket dominated by the US dollar and euro. And Saga’s money supply will be adjusted algorithmically according to the size of its economy.
The group will not be conducting and ICO.
“When designing the funding scheme, we decided not to conduct an ICO. Instead, we opted to address accredited investors, those who have the experience to ask the hard questions, and to perform proper due diligence,” the team said on its website.
The advisory board includes famed economists and financial innovators such as Jacob Frenkel, the former Governor of the Bank of Israel and chairman of JPMorgan Chase International; economics Nobel laureate Myron Scholes, known for creating the Black-Scholes formula, the most well-known model for pricing options and derivatives; Leo Melamed, the chairman emeritus of CME Group and pioneer in financial futures.
Saga tokens can be bought starting in the fourth quarter of this year, the foundation’s website says, and can be purchased using Ether or a bank transfer to one the banks holding Saga’s reserves.