NUON is the flatcoin token within the Nuon protocol. Users wishing to be protected from inflation deposit USDC into the treasury and are minted NUON at a 1:1 ratio. The USDC is used by the protocol to generate yield, and then distributed back to NUON holders in the form of more NUON.

NUON supply rebases in the holders’ wallet, and starts accruing interest by the block, as a rebase in the token supply. Essentially, each NUON will accrue a fraction of itself as interest every second. Newly rebased NUON is then immediately redeemable for the underlying USDC from the treasury.

For NUON, the amount you hold adjusts over time according to the Truflation APY. So, if you had 100 NUON and the Truflation rate was 10% over a year, you would end up with 110 NUON in your account.

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