The Strength Of A Protocol | Rebound Function
Contrary to popular belief, inflation is not a modern phenomenon. Quite the opposite: it has existed for a long time.
Inflation indicates a decrease in the purchasing power of an amount of money, and is expressed as a percentage. Many people think that inflation is only a negative element; in reality, controlled inflation can also be a positive one.
A simple example can help make the phenomenon clearer.
Suppose that in the year 2000 we forgot $10 in the pocket of an old coat. The cost of bread was $1 per kilogram, so we could have bought about 10 kilograms of bread. Today, the cost of bread is about $5 per kilogram. If we found the $10, we could buy 2 kilograms of bread. Therefore, although the $10 has remained the same in value, it has lost purchasing power. This shows how money loses value over time when prices rise.
The protocol automatically and constantly distributes a fixed reward rate, resulting in an increase in the circulating supply (i.e. inflationary action). When the increase in supply becomes excessive in terms of asset value sustainability, the Rebound function of the smart contract is activated, triggering a distributed collective burn (i.e. deflationary action) which creates an equal and healthy inflation management solution for all the investors and the project’s economy.
In two words the ‘Rebound function’ is an inflation controller.
Rebound is one of the most important functions of the Uniqo protocol, designed by the team with the aim of putting investors first who too often see their monetary power being worn down by the pressure of excessive inflation.
Uniqo will be the first token to use Rebound, will bring you true passive income with the most structured and concrete deflation systems, with the advent of Uniqo DeFi will change and there will be a mass movement towards protocols capable of generating self-sustaining deflation.
Be with Uniqo, Stay for the revolution!
Uniqo Docs | Rebound: https://docs.uniqo.finance/protocol-features/rebound