What is the Target Price Curve (S-curve)?

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  4. What is the Target Price Curve (S-curve)?

The Target Price Curve is an S-shaped curve consisting of a predetermined sequence of prices that new ndau from the 30m reserve will be sold at, should the market price reach each new price level. The first 1000 ndau were bought for $1.00 each by the earliest folks involved in the project (no one got any from the reserve for free) and all new ndau since have been bought along this curve that increments in price every 1000. All net proceeds go into the endowment of assets that support a floor price. Once a new price level tier of ndau has been reached by the market, that becomes the new Target Price which monetary policy is geared towards providing “buoyant” incentives that tend to drive it back there when market dips happen.

The last price tier of 1000 ndau in the first phase of 10m ndau issuance will be sold for 2^14 or $16,484 each if/when the market demand for more ndau reaches there.

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