As mentioned above, JNTR was financially engineered to set a face value floor and constantly increase. Therefore, much like the Federal Reserve Gold system used to back currency, economic psychology plays a role in secondary trading.
The psychology assumes that the secondary markets will follow closely to JNTR’s face value in the Liquidity Reserve. This is similar to the old Federal Reserve Gold system to back currency because although the gold is not physically traded, the paper currency receives a denomination as if it were and it is traded on secondary markets following this mindset. This same concept applies to Jointer’s Liquidity Reserves and Syndication Economy. JNTR’s face value can be trusted since there is an option to redeem for digital currency from the Liquidity Reserve process, just like the Federal Reserve.
For example, if the system offers JNTR redemptions for $1 and after a few days the ratio in the reserve increases, pushing JNTR’s face value to $2, it is unlikely that JNTR will trade on secondary markets for a value that deviates far from $2. When the number deviates enough, an arbitrage opportunity arises creating incentive to close the difference between the two values.
So in other words, Jointer’s Liquidity Reserves allow the public the ability to enjoy from JNTR’s growth with decentralized mechanisms that once a floor is established, the face value cannot drop below it, while being supported with unlimited liquidity.