What Is a “Rebase Token”?
A rebase token is a type of cryptocurrency that adjusts its circulating supply automatically. This adjustment, called a "rebase," is done to control the token's price without affecting the value of a holder's stake.
The total value of your holdings remains the same, even though the number of tokens in your wallet changes. These tokens are often used in decentralized finance (DeFi) protocols.
Glossar
Decentralized Finance
Architecture ⎊ Decentralized Finance, within the cryptocurrency ecosystem, represents a paradigm shift in financial infrastructure, moving away from centralized intermediaries towards peer-to-peer systems leveraging blockchain technology.
Circulating Supply
Distribution ⎊ Circulating supply within cryptocurrency represents the total number of coins or tokens that are publicly available for trading and transfer, excluding those held in reserve by the issuer or locked in smart contracts.
Cryptocurrency
Architecture ⎊ Cryptocurrency, within the context of derivatives and trading, represents a decentralized ledger technology fundamentally altering asset representation and transfer mechanisms.
Rebase Mechanism
Algorithm ⎊ The rebase mechanism, within cryptocurrency and derivative markets, functions as a dynamic supply adjustment protocol, altering the total circulating supply of a token based on pre-defined conditions ⎊ typically price fluctuations relative to a target value.
Rebase Token
Algorithm ⎊ Rebase tokens operate through a dynamic supply mechanism, adjusting the circulating token quantity based on a predetermined algorithmic function, often tied to price fluctuations or time-based schedules.
Rebase Tokens
Tokenomics ⎊ Rebase tokens represent a novel approach to token supply dynamics, intrinsically linking token price to the circulating supply through an algorithmic adjustment mechanism.