# CARROT Mechanism 1\. The goal of the upgrade of CARROT is to restore the non-dilutable nature of CARROT. 2\. The specific algorithm upgrades are as follows, A, CARROT inflation reward will no longer be given to the RABBIT Boardroom. B, Rebase algorithm of CARROT: When the 24 hr TWAP is in the range of 0.95-1.05 BUSD, CARROT will neither inflation nor deflation. Global inflation will be issued when 24 hr TWAP higher than 1.05 BUSD. Global deflation will be issued when 24 hr TWAP lower than 0.95 BUSD. When inflation happens, all the wallet addresses holding CARROT will obtain inflation reward. Before deflation occurs, use CARROT mint veCARROT to avoid the decrease in the number of CARROT caused by deflation. C, Optimization of Inflation * When there is debt, 10% of the additional issuance of CARROT will be provided to Garden Balance. * An additional seigniorage, which is 10% of the additional issuance volume of CARROT rebase inflation amount will be transferred to the CARROT ecological fund. CARROT Ecological Fund will be used for CARROT's ecological construction. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://carrot-juice.gitbook.io/english/carrot-juice/carrot-mechanism.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.