The Economic Model of Juna

Juna's monetary system is comparable to those of major Western economies. It includes a reserve system and employs mechanisms for controlling borrowing rates. Banking is regulated through capital and reserve requirements.

The Juna ecosystem operates on a monetary model that is similar to the real economy model, but with a set of conditions that ensure stability and controlled growth. In order for the Juna token to have long-term weight, it is necessary to slowly and predictably fill it with commodity/exchange value. This is achievable through transparency in the monetary model and honest behavior of the Reserve System. 

The Reserve System serves as a buffer and a source of liquidity for licensed banks, which then disperses it into the economy. Additionally, the Reserve System can play a reverse role by withdrawing liquidity through deposit offerings to banks in the event of inflationary processes. The primary problem with any Reserve System is unpredictable growth, which leads to high inflation and loss of confidence in the market. The Juna Reserve System is implemented as a smart contract that holds a significant number of tokens, which can quickly enter circulation through the financing of specific business projects through licensed banks.

The Reserve System must exceed the volume of growth due to inflation to ensure that there is a reserve for development in the economy instead of raising the token exchange rate due to its increasing price. Maintaining prices at a uniform level through economic development from the Reserve System will lead to increased trust in the system. At the start, the Reserve System should hold approximately 5-10% of the system's annual turnover. 

Tokens enter circulation through the Development Fund, which pays for infrastructure development and specific projects that lead to increased system mass. The goal of the Juna monetary system is to ensure relatively stable growth of the aggregate volume of goods reflected in the ecosystem through the management of the Juna token's value, algorithmic 23 regulation of the issuance of new tokens, mechanisms for redistributing tokens, and compensation for inflationary and deflationary processes.

The common principle of the monetary system's operation is algorithmic, controlled growth of the money supply, depending on the economic activity in the system. Activity is determined by counting the number of Juna tokens that have passed through interactions between participants in a unit of time. With some periodicity, the ecosystem's algorithms produce new tokens, the quantity of which depends on the intensity of token flow between users, and direct them to the Reserve System and Development Fund. The Reserve System's funds are available to users in the form of loans from licensed banks. 

The second factor that affects the size of the money supply is the gradual thawing of the founders' funds, which partly go to their wallets and partly to the Reserve System and Development Fund. The system rewards the founders, releases their tokens for circulation in the economy (development and project financing), and partially provides natural growth of the total number of tokens to support system growth while maintaining a stable token value.

The rules of operation of this monetary system are prescribed in the corresponding smart contracts, which ensure verifiability. Determining the main parameters by voting ensures long-term trust in the system and changeability in the event of significant changes in the global economy. An oracle that automatically calculates the overall money flow in the system allows for accurate assessment of economic indicators and forecasting. This allows for setting all necessary interest rates and, as a result, providing long-term loans to small businesses. 

Initially, 35 million Juna tokens are allocated, of which 15 million go to the founders and 10 million go to the Reserve System (RS, for bank financing) and Kickstarter/Launchpad for direct project financing necessary for the system.