The Meter protocol does not have a centralized government but retains the concept of possessing a reserve to absorb any significant shocks to MTR’s price stability.
At launch, 40% of the proceeds collected from the on-chain auctions (in MTRs) gradually goes to validators as block rewards in the next 24 epochs; the remaining 60% goes into the reserve. The MTRs that are put into the reserve are temporarily removed from circulation. This reserve allocation ratio is a parameter that can be adjusted via the Meter governance process.
The reserve is collectively owned by MTRG token holders. In the future, MTRG token holders will be able to borrow their pro rata shares of MTR in the reserve or use them as collateral for DeFi applications.
As an analogy, the validators essentially function as commercial banks, while everyone can be a central bank by issuing currency in a permissionless fashion.