Setheum distributes newly minted SETT as discounts and cashback to the users of SettPay whenever they transact with SETT or any of the SETT based tokens. This happens in the upturn of SETT. When SETT is minted in the upturn, 60% of the newly minted SETT will go back to the ecosystem through SettPay as cashback (what we now call "cashdrop"), while the remaining is distributed into the economy as such described below.
SerpUps (Supply Expansions): Where do they go?
60% to the "SettPayReserve" for cashdrops.
15% to the "Expansion Auction" in "Serp Auctions" to buy back DNAR for burning.
10% to the "Charity Fund" to support the needy.
5% to the "Treasury".
5% to the "LPs" of the Built-in-DEX (LPs of pools containing a pair of that currency).
5% to the "SIF (Setheum Investment Fund)".
Then in the opposite case, DNAR will be minted and sold in the Serp Auctions where anyone can take part in buying DNAR and selling SETT or settcurrency to the system (depending on which currency needs to be serped-down/contracted) for burning and contracting the currency supply to bring the price back to the peg.