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 |
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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.
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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 |
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