# Dilution Protection (Rebase)

A key function of the ve(3,3) model is the dilution protection rebases, which occur per epoch, to incentivize users to lock their tokens early on. The rebase is a nod to the OHM (3,3) model that was popularized the past couple years.

A practical example to give you a better understanding of how the system works:

**EXAMPLE: 25% Dilution Protection:**

{% hint style="success" %}
Note: NILE has a 25% rebase, increasing 1% per epoch until 50%
{% endhint %}

* You have 1000 NILE, which is 10% of the total supply of 10,000 NILE at the time.
* During this epoch, another 10,000 NILE was emitted to gauges, pushing the total supply of NILE to 20,000
* You can claim your rebase after the epoch ends and receive 250 extra NILE added to your position. This makes you now have 6.25% of the total supply, at 1250 NILE out of 20,000 NILE

The above is a crude but straightforward example that should simply explain the ideology and functionality of the rebase.


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