The organization will use the funds parked in a group of stable banks (essentially, a basket of bonds) which will then theoretically maintain a relatively stable price over time. So there’s a stable price mechanism, and Libra Coins will be minted against the Libra Reserve, against those assets.
Allocation of Libra Coin will happen two ways:
The first way, which people may be somewhat familiar with, is allotting Libra Coins to Founding Members based on their $10m buy-in or membership fee. The Founding Members will then turn around and “stake” those coins in the Libra Network (which we’ll talk about later), essentially guaranteeing the safety of the network at the risk of losing this investment.
The second way—which people aren’t as familiar with—is through the currency that individual consumers use to buy into the network.
Libra Developer Spotlight: Check out the exciting new projects being built on the testnet: https://t.co/QmbkmmA4e0— Libra Dev (@LibraDev) 12 settembre 2019
