The Axiom Foundation has the authority to release new ndau from the reserve and to permanently remove ndau from circulation. It is contractually obligated to take these actions as directed by BPC in implementing the ndau monetary policy.
When ndau demand rises beyond the limit of what’s available in the market below the current Target Price, the Axiom Foundation is required to sell new ndau from ndau reserves held in the Endowment into the market at that Target Price, which increments higher every 1,000 ndau sold from the reserve. The net proceeds of those sales then flow to the Endowment. Conversely, when the ndau Market Price falls to the Floor Price, the Axiom Foundation is required to buy ndau through purchase orders it has placed at the Floor Price (subject to practical rates of liquidity) and permanently removes the repurchased ndau from circulation.
The Axiom Foundation also acts as a liquidity provider for ndau and maintains stability and liquidity through its ability to buy and sell currency according to the ndau monetary policy as directed by the BPC. It stands ready to buy and sell ndau on a continual basis at prices specified by the pre-established and transparent rules rules of the ndau monetary policy, subject to practical volume per unit time limitations.