---
tags: HIPs
---
# HIP 7

hip: 7
title: Rebase parameters
discussions-to: HAM Discord
status: In discussion
type: Meta
category: Rebases
created: 2020-09-06
requires: 4
replaces: N/A

## Simple Summary
Rebasing is one of the integral structures of the HAM protocol. The timing, the lag factors of the rebases, as well as the percent allocated to the treasury need to be decided carefully. The rebase is a mechanism for maintaining HAM at its target price of $1, and it must be maintained and thought through carefully.

## Abstract
There are endless ways to configure the rebasing. The main variables are 1) the frequency of such rebasing, 2) the strength of the rebase (configured by the lag factor), and 3) the rebase tax rate captured by the HAM treasury upon a positive rebase. Some of these decisions can be rather technical.

## Main rebase parameters

### Aggressive capture rebasing
This type of rebasing captures a significant amount of HAMs created during rebasing (10-15%) and regular rebases of at least once a day to significantly build up the amount of capital in the treasury. This type of rebasing would enable the piggy bank to build up quickly from the get go of the project by capturing a lot during the initial hype period. Once that period is over and the price of HAM lowers in volatility, the rebasing will be much less dilutive because of the smaller difference between the pegged price of One US dollar and the actual price of HAM, meaning that long term HAM holders will not see their share of Ham decreasing much over time.

### Low frequency rebasing
After the initial farming stages of Ham, the frequency of rebases could be reduced significantly as the treasury will have built up a considerable amount of capital by then and the accrual of more treasury funds should no longer be by treasury capture but by other value creating projects in the Ham ecosystem.

### Possible decisions on rebase timing:
#### Faster end:
* Every 6 hours
* Every 12 hours
* Every 24 hours

#### Pros:
* Price target could be rapidly reached.
* Less opportunity for people to take advantage.
* Treasury established quickly.

#### Cons:
* More stressful at launch, rebases are still a risk.

#### Slower end:
* Every 2 days
* Every 3 days
* Every week

#### Pros:
* Less stressful

#### Cons:
* Could introduce malicious players attempting to play the rebase system if too long, giving players time to buy/sell around the rebase.

### Possible decisions on amount to allocate
#### Choices:
* 5% of total supply increase.
* Less sell pressure.
* 10% of total supply increase.
* Larger treasury to begin with.

## Decision

## Copyright
Copyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).