XAURUM Production price


Xaurum's Coinage price is an empirical variable required by the Xaurum Coinage formula, it is the market price of 1 XAUR at the time of Coinage, on the exchange with the most volume. This variable is used for different functions, one of it is Xaurum Production price, that regulates Xaurum money supply inflation. The purpose of this mechanism is to distinguish market demand for new xaurum from the general demand for profit. It allows Xaurum to determine the time of beneficial market conditions for its inflation.
As you know, new XAUR token can only be generated through Coinage, currently Minting and Mining. The price of producing new XAUR token is defined as Production price. Production price is XAURUM’s most important external parameter, that allows Xaurum to respond to its external market conditions. It defines the market price required for Xaurum money-supply inflation, and provides speculators with the well-defined market price of XAUR, when anticipating Xaurum growth.
1. Production price can only increase.
2. Production price is set at every Coinage.
3. Production price is used as an empirical variable of the Coinage equation.
4. New Production price is set at exchange price of XAUR at the time of the Coinage. When the exchange price is greater than the previous Production price, Coinage is possible.
5. Production price is denominated in USD.
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.