When the price is lower than Production price, 30% of minting funds are used as a market buy. The production price can only grow or stay the same.
Production price regulates supply of new XAUR tokens:
1. If the prices on exchanges are lower than production price, the supply of XAUR tokens is sufficient for the current demand, as expressed by the market. The coinage of new xaurum through minting and mining will buy from the market with 30% of its funds.
2. When the price on the exchange grows above production price it is a sign that market is demanding new xaurum. In this case supply will be increased through coinage, the Xaurum commonwealth gold will increase, and new (higher) Production price will be set.
In short; XAURUM has built in mechanism that regulates supply of new tokens. The market will never be flooded with new XAUR being coined without a good reason - the market demand for new xaurum.
More simplified explanation can be found here.