# What is Starbase?

## What is Starbase?

Starbase is a token launchpad where **every token has a price floor** — a guaranteed minimum value that can **only go up**.

You can think of Starbase like a launchpad for community tokens where you always know the **worst-case exit price**.

{% hint style="info" %}
**The one-line idea:** Every Starbase token has **two prices** — a Market Price (moves up/down) and a Floor Price (guaranteed minimum that only rises).
{% endhint %}

### The problem Starbase solves

Most tokens have a scary downside:

* Tokens can lose **90%+** of their value overnight
* Creators hesitate to launch tokens because a crash can damage their reputation
* Traders avoid tokens because the downside feels unlimited

Starbase is designed to make tokens feel **less like a cliff** and more like a **bounded-risk market**.

### How Starbase is different

On Starbase:

* **Every token has a Floor Price** — the minimum value your tokens can be redeemed for
* The **Floor Price only increases over time**; it never goes down
* You can always exit at the **Floor Price**, no matter what happens in the market

The floor is backed by **real reserves** that exist on-chain and are used programmatically to support redemptions.

### Two prices, one token

Every token has:

**Market Price**\
The current trading price. It moves based on buying and selling activity.

**Floor Price**\
A guaranteed minimum redemption price. It only rises.

**Market Price can swing. Floor Price only climbs.**

### Who is Starbase for?

#### Creators & Brands

Launch a token for your community without the fear that a catastrophic crash will permanently harm your reputation.

#### Traders

Participate in token markets with **bounded downside** — you always know the worst-case exit price (the floor).

### How it works (high level)

When you buy a token on Starbase:

1. You pay in **USDC** (a digital dollar that’s designed to track $1.00).
2. A portion of your purchase is added to protocol reserves.
3. Those reserves are used to **back the Floor Price**.
4. As reserves grow, the Floor Price is **raised programmatically**.

When you sell, you have two options:

* **Sell at Market Price** (like a normal trade), or
* **Redeem at Floor Price** (guaranteed minimum)


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