How does the Jointer Reserves' restrain JNTR daily appreciation?
Jointer’s longevity and liquidity in the market relies on the Auction to thrive. If JNTR’s price appreciates too quickly, investor’s would be more apt to sell the JNTR they won at a discount on the secondary market. A deep discount on the secondary market would risk reducing the appeal to investors of participating in the Auction.
Therefore, Jointer created a smart contract that regulates JNTR’s daily appreciation in a decentralized manner. The smart contract is not controlled by Jointer and limits JNTR’s appreciation to 120% greater than yesterday. When JNTR’s appreciation naturally rises above 120%, the Main Reserve transfers the remaining funds to the Side Reserve.
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