Measurements

Juna GDP and measuring the "sum of goods" and other economic indicators

Hereinafter, the money supply M refers to the circulation supply. The money supply is not equal to the sum of goods in the ecosystem, represented by the supply and demand of goods and services, as well as financial instruments and their derivatives ("on-chain GDP" - JGDP).

To meaningfully manage the issue, it is necessary to measure JGDP, which is based on:

• Core Economic Metrics

  • Volume of Economically Significant Transactions

    • The amount of real transactions (goods and services) that have passed on-chain, where the Juna token acts as a means of exchange and payment

    • Internal transfers (self-transfers), pseudo-trading (wash trading) and other "empty" transactions are filtered out

  • Financial System Activity

    • The total amount of loans issued, deposits placed, the volume of reserves

    • An increase in lending usually signals an increase in demand and business activity

  • Corporate Ecosystem Health

    • The number of registered "on-chain companies", their turnover, paid commissions

    • Indices from the DAO Development Fund, the number of launched startups, the volume of grants, the dynamics of revenue from projects that received grants

• Advanced Economic Indicators

  • Token Velocity Analysis

    • Velocity of Juna V = Amount of economically significant transactions for the period / Average number of liquid (Unlocked) tokens in circulation

    • High V with good transaction growth usually indicates a vibrant economy

    • Low V indicates stagnation or "holding" tokens

  • Market Pricing Dynamics

    • Token "price" index: Even if there is no large public market, an "internal" rate is formed in p2p transactions, or on limited DEX/CEX

    • A strong rise or fall in the exchange rate may signal volatility, "overheating" or lack of liquidity

All this data is collected either directly on-chain (through smart contracts) or by oracle services. The measurement methodology is published, developed and maintained in an up-to-date state by the Monetary Policy DAO.

Algorithm for calculating emission and the goal of "outstripping" growth by 5-15%

Definition of "Growth of the sum of goods" (Base Growth)

Base Growth = (JGDP for the current period − JGDP for the last period) / JGDP for the last period

Where "JGDP" is the final index that takes into account the volume of real transactions (goods/services), credit indicators, company activity, etc. (see above).

Example:

• If for the last period (year/quarter) the total "Sum of goods" was estimated at 1,000 units (in terms of Juna or equivalent), and in the new period it became 1,200, then the growth was (1200−1000) / 1000 = 20%

• At the same time, we need the emission (growth of the money supply) to be ahead of JGDP growth by 5-15%: that is, the money supply should increase by approximately 25-35% (in this example).

• This example does not take into account the influence of the MoneyMaker Leverage bank multiplier, which increases the money circulation

Calculating the desired emission (ΔM)

If BaseGrowth is the growth of the sum of goods, and β is the desired "leading" range (5-15% on top of growth), you can set the function:

ΔM = Mprev × (BaseGrowth + β)

Where Mprev is the money supply of the previous period (the number of tokens in circulation). It is important to clarify what we consider "the number of tokens in circulation" (circulating supply), excluding hard-locked funds and reserves.

• If "BaseGrowth = 20%, β = 10%, then ΔM = Mprev × 30%

• If "BaseGrowth = 5%, and β = 5%, then ΔM = Mprev × 10%

There are also Thresholds (min and max) of absolute growth of the money supply per year to avoid "overheating" or "stagnation". The size of the thresholds is set by the Monetary Policy DAO.

Who and when makes the decision on the issue?

DAO of the banking and reserve system (Monetary Policy DAO). This is the main body that:

1. Approves key monetary policy parameters (emission, interest rates, reserve requirements);

2. Analyzes reports on economic activity (the above metrics);

3. Conducts a vote on emission volumes, its schedule (monthly, quarterly) and distribution.

The composition is elected from among experts, systemically important economic entities, as well as founders and developers.

Frequency of decision-making

Usual annual cycle (or quarterly):

1. Collection of metrics for the period;

2. Publication of the report (for example, smart contract analysts, oracles, Data DAO);

3. Discussion in the DAO + proposal for a new issue;

4. Voting (7-14 days);

5. Implementation.