Market Price is recorded on the ndau blockchain to provide input to ndau’s Monetary Policies and determine SIB rates. As a specific Long-Term Store of Value, the Market Price used by the ndau blockchain for the above purposes must not be easy to deliberately manipulate, nor allow for intraday volatility to effect ndau’s Monetary Policies. The current methodology for achieving this objective is to record Market Price as the 24-hour volume-weighted moving average price of ndau on all active exchanges every 5 minutes.
ndau is designed and optimized as a long-term store of value. It does not see nearly as much intraday trading as would a medium of exchange token or speculative digital asset. Some of the medium of exchange tokens generate trading volume equal to their market capitalization every day. And the speculative digital assets like Bitcoin are designed to encourage volatility. ndau was designed to be held for years, not minutes. Analysis of ndau on-chain vs off-chain transactions and holdings reveals only a small portion of issued ndau is on an exchange at any given time. The majority of Offers to Sell ndau on exchanges are Offers from the Axiom Foundation at the Next Issue Price. A typical purchase of ndau would sweep through all secondary market Offers and be purchasing at least a portion of the ndau from The Axiom Foundation at the Next Issue Price.
The vast majority of ndau is in ndau Wallets held by those with a need for a long term store of value. An analysis of the trading volume seen on exchanges and on-chain transfers of ndau shows purchasers buying ndau on exchange then transferring to their own Wallets to benefit from ndau’s monetary policies and Ecosystem Alignment Incentives.