Question on tokenomics paper

The total number of MTRG offered for auction is capped by the supply curve and then further reduced by the weighted average of the settlement price for the past 30 on-chain auctions(shortly AUC Price). If the average price is higher, more MTRG will be offered in the auction (but can not exceed the cap) and vice versa.

I find this paragraph a little ambiguous.

How is the reduction calculated?

Are there any MTRG that are not auctioned yet enter the system?