What is Jointer's Main Reserve?
The Main reserve has two responsibilities, one is to provide ongoing liquidity for JNTR holders when they redeem their JNTR and secondly to calculate JNTR’s face value.
To establish Jointer’s Main Reserve, Jointer uses the Bancor relay protocol to store funds and JNTR into two pools that act as a fractional reserve for redemption. One pool holds JNTR and the other pool holds BNT. Every time BNT or JNTR is added or removed from their respective pools, the JNTR face value will change. Therefore, when BNT is added to the pool, JNTR is removed from the other pool. As a result, JNTR’s face value increases. Conversely, if JNTR is added to the pool, BNT is removed from the other pool and as a result, JNTR’s face value decreases.
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