🔄Rebase Mechanism
Rebasing adjusts the token supply at fixed intervals to prevent the market price from deviating too far upward or downward. This mechanism ensures long-term sustainability of token value.
Cycle
Every 8 hours (UTC 00:00, 08:00, 16:00)
Price Data
Based on Chainlink Oracle
Logic
Adjust supply to keep price within ±20%
Trigger Conditions
If the COS price is >20% above the 30-day moving average:
The system increases the total supply of COS tokens to bring the price down toward the target range.
If the COS price is <20% below the 30-day moving average:
The system decreases the total supply of COS tokens to push the price up toward the target range.
If the COS price is within ±20% of the 30-day moving average:
No adjustment is made to the supply.
Supply Adjustment Formula
Example
1.Supply Increase:
2.Supply Decrease:
Staking (xCOS)
When staking COS, it is converted into xCOS, which compounds automatically with every rebase. This means long-term holders benefit from compound interest growth as rewards accumulate continuously.
xCOS_new
Final xCOS balance
xCOS_current
Current xCOS balance
r
Interest rate per rebase
n
Number of rebases
Example
New COS Amount
Annual APY
This is not a simple high-risk/high-return scheme—it reflects continuous compounded growth over time.
⚖️ Interest Rate Determination
The staking interest rate is not fixed. It is determined by DAO governance based on Treasury profitability and the need for ecosystem stability.
Y_treasury
Treasury yield
S_circulating
Circulating supply
r_max
Maximum rate
Staking Reward Distribution
R_i
Reward for staker i
xCOS_i
xCOS balance of staker i
\sum xCOS
Total staked xCOS
R_total
Total rewards pool
Example
Thus, larger stakes earn larger rewards, but all stakers receive a fair proportional share.
🛡 Price Defense
If the market price falls below the intrinsic backing value, a Buyback and Burn mechanism is triggered to defend the token price.
Example
Buyback Funding
Buybacks are not unlimited—they are constrained by Treasury resources and DAO-defined rules.
Example
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