NOTE is the unit of account on Canto. NOTE is an over-collateralized currency with a value perpetually rebalanced toward $1 through an algorithmic interest rate policy. It is:

NOTE cannot be created – it must be borrowed from the Accountant, a smart contract that implements the algorithmic interest rate policy, via the Canto Lending Market (CLM). All interest charged by the Accountant is earmarked for funding public goods. It is held in the Community Treasury and ultimately governed by the Canto DAO.

NOTE is a fully immutable ERC-20 token backed by collateral lent to the CLM. It can can only be borrowed by users who post select collateral assets. At this time, eligible collateral assets are $USDC and $USDT. As a result, for every $NOTE in circulation, there is more than 1 USD worth of collateral held by the CLM. Since NOTE cannot be created, only borrowed, the Accountant contract utilizes interest rates to manage the circulating supply of NOTE, and by proxy, its price. The interest rate on $NOTE automatically adjusts up or down every 6 hours based on a TWAP of the market price of NOTE.