# Rebasing

Vitruveo stands out as the world's only blockchain to integrate rebasing directly into its core, unlike other protocols that rely on Smart Contracts for this functionality. At its essence, rebasing in Vitruveo can be likened to compound interest, but with a unique twist to avoid the pitfalls of inflation.

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### **How Rebasing Works in Vitruveo**

* **Built-In Rebasing Mechanism**: Unlike traditional methods where rebasing is implemented through Smart Contracts, Vitruveo incorporates it as a fundamental part of the protocol, enhancing performance and integration.
* **Progressive Challenge**: To maintain ecosystem vitality, the transaction goal for each epoch incrementally increases by 500, encouraging sustained performance and growth.
* **Cap and Duration of Rebasing**: This rebasing feature is designed to halt once the circulating supply of $VTRU hits 250 million. Additionally, it's expected to be operational for the initial 5-7 years of the protocol, conceptualized as "Early Adopter Rewards." This system offers a form of passive income to all $VTRU holders during this phase.


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