A dollar amount can stay the same while its purchasing power changes.
A token that redeems for one dollar fixes a nominal amount. As consumer prices rise, that dollar buys less. IPU Coin explores a different target: a dollar value that adjusts with the IPU Index.
In this proposal, “inflation-resistant” describes the intended CPI link. It does not mean a guaranteed return or protection against every change in living costs. CPI measures an average basket, and individual expenses can move differently.
How the proposed CPI link would work
The IPU Index turns published monthly U.S. CPI-U data into a daily reference using lagged interpolation. A future IPU Coin could use the change in that index to set a target dollar value.
The start date and initial target would have to be specified in the final issuance terms. They have not been set. If the index rises, the target would rise; if it falls, the same formula would lower the target. The index itself has no floor or cap.
This target is a calculation reference. A token’s market price and actual redemption proceeds would also depend on its reserves, liquidity and enforceable terms. A published formula alone cannot keep those amounts aligned.
Read the index methodologyWhat a 3% index adjustment would mean
Suppose a future issuance starts with a $1.00 target when the index is 100. If the index later reaches 103, the proposed formula gives a $1.03 target.
Hypothetical calculation only. These are not token prices, a forecast, an interest payment or a promised redemption amount. No IPU Coin has been issued.
The adjustment needs financial support.
If the target value increases, an issuer needs sufficient assets to meet the larger obligation. The index does not create those assets. Reserve performance, operating costs and redemption demand all affect whether a design can work.
Before issuance, a complete proposal would need to state:
- The issuer, jurisdiction and the legal rights held by a token owner.
- The reserve assets, custody arrangements, valuation policy and independent reporting.
- Who funds any shortfall between the assets and the CPI-linked obligation.
- How redemption works, including currency, timing, fees, limits and liquidity arrangements.
- What happens during deflation, missing CPI releases, source corrections or index cessation.
No reserve strategy, custodian or redemption commitment has been established for this proposal.
Where the project stands
No token is issued or available to buy. No reserve backing, launch date, yield or purchasing power guarantee is claimed.
The website currently publishes the IPU research index and an outline of the coin’s intended design. The issuer, final token economics, reserve structure, holder rights and redemption terms remain open.
“Stablecoin” describes the proposed product direction. Its legal classification and the requirements for issuance would depend on the final structure and jurisdiction. The name is not evidence of authorization.