The Key Pillars of Rebase

What are the core philosophies of Rebase and distinguishes it from other DeFi primitives?

Rebase tokens are Not like BTC or ETH.

Rebase has a price target it uses to set long-term supply goals. This price target is bound to a CPI to keep Rebase’s purchasing power anchored through time. This means the dollar-denominated target can change month-to-month as new CPI data are published.

The Rebase token is not a stablecoin

Although the Rebase protocol enforces a price target, balances can be volatile—even if you don’t make any trades yourself. When the nominal exchange rate between Rebase tokens and its price target moves outside the target band, the daily rebase operation will begin proportionally adjusting supply across all user balances, until the exchange rate moves back within the band.

As previously discussed, unlike current-generation cryptocurrencies, gains in the Rebase network can be attributed to supply in addition to price.

So Rebase tokens is not a stablecoin, but its also not like BTC or ETH, so what is it? 👇

The Three Pillars

Rules vs Discretionary	Elastic vs Inelastic	Money vs Bank
Discretionary monetary policy lies at the discretion of a group of individuals Rules-based monetary policy lies in widely understood, transparent and established rules	Elastic supply means a supply of a good/commodity can be changed (more or less), like the amount of guns being manufactured. Inelastic means the supply of a good/commodity is rigid. For example, the amount of land above water on Earth.	A money is a current medium of exchange in the form of coins and banknotes that is a store of value and unit of account A bank is a financial institution licensed to receive deposits, make loans and provide other financial services
Rules-based policies allow for predictable and measurable monetary actions. This is good for markets.	Elastic supply allows for currencies to adapt to market conditions. This is good for market participants.	Expanding the role of money through cryptocurrency and decreasing the role of banks allows for optionality, independence and decentralization. This is good for markets and good for participants. Monies are simple, banks are complex. This is good for decentralizing governance.

So now what - what do the 3 pillars mean for users?

Features The Three Pillars Enable:

#	Key Feature	Why?
1	Censorship Resistant	Become a true check to traditional economic / governmental force
2	Diversification	Bring value to a highly-correlated crypto-space
3	Elasticity of Supply	Utilize blockchain technology to push forward next-generation currency