Saver Token Vs. TIPS

Treasury inflation protected securities, (TIPS), are Treasury bonds that are indexed to inflation. At first sight they seem to provide the same benefits as Saver Tokens. However the two products have very different profiles.

To begin with TIPS are issued by the US government. Inflation is the result of government debasement of the dollar through the use of the printing press to fund its debts. Can the same government provide a viable solution to the problem it has itself created?

TIPS earn interest which Saver Tokens do not. However the interest paid on TIPS fluctuates and is also subject to tax. Because the TIPS earn interest as well as the principle increasing with inflation their tax treatment is not straightforward.

Compared to Saver Token TIPS are difficult to trade and importantly their full value may not be realised if they are sold before maturity.

Finally, while conventional wisdom assumes government debt is risk free this is certainly not the case in practise, including the United States Government: https://en.wikipedia.org/wiki/List_of_sovereign_debt_crises

Governments have a history of reneging on their obligations.

TIPS remain part of the fiat financial system and are therefore subject to the systemic risk of the system collapsing. By way of contrast the value of Saver Tokens is dependent on none but the token holders themselves. Token ownership is confirmed by the Waves blockchain, a system of accounting independent of the financial system.