🥑2. Scientific application of monetary tools

Before Keynes' liquidity preference theory was accepted, many indicators were not considered part of monetary policy. With the development and progress of human society, monetary policy and tools are also gradually improving. From the paper currency issued in the Song Dynasty of China to the gold standard paper currency issued by the Bank of England, the issuance, value and regulation of currency have gradually evolved and formed a classic effective monetary policy over thousands of years. The current monetary policy has three major tools: open market operations (OMO), reserve requirement ratio (RRR), and discount window (DW). Here we will focus on the first two. OMO and RRR are both $Kat as a monetary regulation tool. In the $Kat ecosystem, OMO mainly uses repurchase transactions (RP: repurchase agreement) and cash bond transactions (CBT: Cash Bond Trade). Here we will simply set the relationship between the BinD space and the GoD space in the above monetary tools in simple language:

Participants can quickly obtain $Kat with Tokens through the BinD space, but we know that this is not a 100% full exchange! Why set it up in two different parts? And only 1%-30% can get $Kat! In fact, the design adopted here is similar to the deposit reserve ratio in the classic monetary policy. The role of this mechanism in traditional finance is to ensure the normal payment of financial institutions to customers, such as preventing bank runs. When the central bank lowers the deposit reserve ratio, the funds available for loans by financial institutions increase, thereby promoting the increase of the total amount of social currency and money supply; on the contrary, raising the deposit reserve ratio will lead to a decrease in available loan funds, thereby inhibiting the growth of the total amount of social currency and money supply. RRR, a monetary tool, allows participants to obtain a small amount of $Kat in a paid way in the BinD space through a 3:7, 1%-30% method. While feeling the charm of $Kat's value, it will not cause a large amount of $Kat to flow into the ecosystem in a short period of time, causing $Kat to fluctuate maliciously. At the same time, it also gives participants the right to promote and promote rewards through a 10% promotion reward, prompting them to obtain more $Kat rewards in a healthier and more positive way!

For example, while participants obtain 5% $Kat through the GoD space, 15% are also being black hole destroyed and liquidity added. The design here is actually the application of open market operations. Black hole destruction is similar to RP, and liquidity addition is similar to CBT. The application of this OMO tool in the $Kat ecosystem is mainly used as a protection mechanism for the spiral rise of $Kat. MEME coins can easily achieve a thousand-fold increase due to its strong community consensus and market momentum, but as $Kat of MEME2.0, we must not only have unlimited room for growth, but also have a spiral elastic protection mechanism. The application of OMO tools can escort $Kat to a certain extent, but will not excessively intervene in market behavior, and truly achieve a comprehensive escort mechanism of regularity, continuity, reversibility and spirality!

Pandas who are interested in finance can also conduct further research. $Kat will always give you unexpected surprises! The greatest wisdom in the world is the wisdom of the crowd! $Kat is the crystallization of our collective wisdom!