xETH combines the of elastic supply tokens such as Ampleforth but without the negative rebases (users never lose tokens after a rebase). It also borrows from deflationary tokens (BOMB, XAMP, TOB, BOA, etc) by burning 1% of each transaction, thereby reducing the total supply over time and increasing the value of each token. Finally, it offers to stake dividends to incentive long term holding rather than short term buying and selling.