We actually took into consideration the emotional aspect of the holders as well. From the user perspective, the number of tokens that they have in their wallets matter as much as the overall value, because it is related to the profit they earn when the price goes back up. If there were to be negative rebases, when the market is bearish, the number of tokens in the wallet decreases to even out the price change. Instead, xTRX integrated a more complex and innovative deflationary mechanism that constantly increases the scarcity of xTRX tokens. Per every transaction and payment made using xTRX tokens, there will be a percentage taxed and this amount will be used for two purposes. A portion of it is going to be shared with all the holders of xTRX and the rest is going to be automatically burned. With this system, the price of xTRX can be managed at around the same level of negative rebases, without actually decreasing the number of tokens of the holders.

Our deflationary mechanisms and elastic supply calculation has been developed by experts in the economics field to find the ideal formula for minimized risks. While the price is pegged 1:1 ratio with TRX, if the rebase calculation also had a 1:1 ratio, it would cause a high level of inflation that would drive the xTRX price down. With extensive research and calculations, the team has set the rebase formula to have a 10:1 ratio, meaning every 1 percent increase in price would lead to 0.1 percent increase in total supply. Using this formula, the rebase will take place every 24 hours.