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What Are the Advantages of an Elastic Supply Model?

The primary advantage of an elastic supply model is its ability to maintain a stable price. By adjusting the supply in response to demand, rebase tokens can theoretically avoid the extreme volatility that is common in the cryptocurrency market.

This can make them more suitable for use as a medium of exchange or a store of value. Additionally, the rebase mechanism can create interesting economic incentives for traders and liquidity providers.

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