How Do Rebase Tokens Differ from Other Types of Cryptocurrencies?
Rebase tokens differ from other cryptocurrencies primarily in their supply mechanism. While most cryptocurrencies have a fixed or predictably inflationary supply, rebase tokens have an elastic supply that changes in response to price movements.
This means the number of tokens you hold can change, even if you don't make any transactions. This is in contrast to traditional cryptocurrencies where your token balance only changes when you send or receive tokens.
Rebase tokens aim for price stability, whereas other cryptocurrencies may prioritize decentralization or transaction speed.
Glossar
Elastic Supply
Supply ⎊ The concept of elastic supply, within cryptocurrency derivatives and financial engineering, describes a responsiveness of the available asset quantity to price fluctuations.
Rebase
Mechanism ⎊ Rebase operations, within cryptocurrency and derivatives, represent a revision of the blockchain’s history, altering the base from which future blocks are built; this differs fundamentally from a hard fork, maintaining chain continuity while rewriting commit history.
Rebase Tokens
Mechanism ⎊ Rebase tokens represent a unique class of cryptocurrency designed with a dynamic supply, adjusting the number of tokens in each wallet based on algorithmic rules or external factors, differing fundamentally from tokens with fixed maximum supplies.