Rebase

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Rebase

What is Rebase

A rebase (or price-elastic) token is created in such a way that the circulating token supply automatically changes (increases or lowers) in response to changes in the token’s price. We refer to this expansion and contraction as the “rebase mechanism”.

Rebase tokens and stablecoins are similar to one another in that they both have price targets. Rebase tokens, in contrast to stablecoins, have an elastic supply, which means that the amount of tokens in circulation fluctuates in response to supply and demand without impacting the value of the tokens in users’ wallets.

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