# What Is a "Rebase Token"? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## 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.

- [Can a Rebase Token Have a Series of Consecutive Positive or Negative Rebases?](https://learn.greeks.live/path/can-a-rebase-token-have-a-series-of-consecutive-positive-or-negative-rebases/)

- [What Is the “Exchange Rate” between the Wrapped and the Original Rebase Token?](https://learn.greeks.live/path/what-is-the-exchange-rate-between-the-wrapped-and-the-original-rebase-token/)

- [What Happens If a Rebase Token Consistently Fails to Meet Its Target Price?](https://learn.greeks.live/path/what-happens-if-a-rebase-token-consistently-fails-to-meet-its-target-price/)

- [How Does the Rebase Frequency Affect the User Experience of Holding a Rebase Token?](https://learn.greeks.live/path/how-does-the-rebase-frequency-affect-the-user-experience-of-holding-a-rebase-token/)

- [What Is the Impact of Rebase Frequency on the Volatility of a Rebase Token?](https://learn.greeks.live/path/what-is-the-impact-of-rebase-frequency-on-the-volatility-of-a-rebase-token/)

- [How Do Rebase Tokens Differ from Other Types of Cryptocurrencies?](https://learn.greeks.live/path/how-do-rebase-tokens-differ-from-other-types-of-cryptocurrencies/)

- [What Is the Difference between a Rebase Token and a Liquid Staking Token?](https://learn.greeks.live/path/what-is-the-difference-between-a-rebase-token-and-a-liquid-staking-token/)

- [How Does a Rebase Mechanism Work in Practice?](https://learn.greeks.live/path/how-does-a-rebase-mechanism-work-in-practice/)

## Glossar

### [Decentralized Finance](https://learn.greeks.live/area/decentralized-finance/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/circulating-supply/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/cryptocurrency/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Architecture ⎊ Cryptocurrency, within the context of derivatives and trading, represents a decentralized ledger technology fundamentally altering asset representation and transfer mechanisms.

### [Rebase Mechanism](https://learn.greeks.live/area/rebase-mechanism/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/rebase-token/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/rebase-tokens/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

Tokenomics ⎊ Rebase tokens represent a novel approach to token supply dynamics, intrinsically linking token price to the circulating supply through an algorithmic adjustment mechanism.

## Discover More

### [Can a Rebase Token Have a Series of Consecutive Positive or Negative Rebases?](https://learn.greeks.live/path/can-a-rebase-token-have-a-series-of-consecutive-positive-or-negative-rebases/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Rebase Token Have a Series of Consecutive Positive or Negative Rebases?](https://learn.greeks.live/wp-content/uploads/2025/10/Macro-View-of-Centralized-Exchange-Lens-Reflecting-Multi-Asset-Volatility-Surface-Dynamics.webp)

Yes, a rebase token can have a series of consecutive positive or negative rebases if the price stays consistently above or below its target.

### [How Can a "Rebase" Token's Non-Standard Behavior Affect Its Use as Collateral?](https://learn.greeks.live/path/how-can-a-rebase-tokens-non-standard-behavior-affect-its-use-as-collateral/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can a "Rebase" Token's Non-Standard Behavior Affect Its Use as Collateral?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Clockwork-Mechanism-Metaphor-for-Decentralized-Finance-Volatility-and-Perpetual-Swaps-Execution.webp)

Automatic supply changes (rebasing) break the static quantity assumption of collateral contracts, leading to miscalculation and incorrect liquidations.

### [What Is the "Exchange Rate" between the Wrapped and the Original Rebase Token?](https://learn.greeks.live/path/what-is-the-exchange-rate-between-the-wrapped-and-the-original-rebase-token/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the "Exchange Rate" between the Wrapped and the Original Rebase Token?](https://learn.greeks.live/wp-content/uploads/2025/10/Asymmetric-Illumination-of-Digital-Asset-Volatility-Surface-Overlays-Financial-Horizon.webp)

It is a continuously adjusting rate (not 1:1) that reflects the total underlying rebase tokens in the vault divided by the static supply of the wrapped token.

### [Are There Any New Rebase Token Projects on the Horizon?](https://learn.greeks.live/path/are-there-any-new-rebase-token-projects-on-the-horizon/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Are There Any New Rebase Token Projects on the Horizon?](https://learn.greeks.live/wp-content/uploads/2025/10/Crystalline-Stratification-of-Decentralized-Finance-Volatility-Index-Within-Automated-Market-Maker-Mechanism.webp)

New rebase token projects are always emerging, with a focus on sustainable tokenomics and new use cases.

### [What Happens to My Investment If a Rebase Token's Smart Contract Is Exploited?](https://learn.greeks.live/path/what-happens-to-my-investment-if-a-rebase-tokens-smart-contract-is-exploited/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Happens to My Investment If a Rebase Token's Smart Contract Is Exploited?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Exchange-Mechanism-Structural-Integrity-Cross-Sectional-Derivative-Collateralization-Analysis.webp)

A smart contract exploit can lead to a complete loss of your investment, as an attacker could drain funds or crash the price.

### [How Does the Rebase Frequency Affect the User Experience of Holding a Rebase Token?](https://learn.greeks.live/path/how-does-the-rebase-frequency-affect-the-user-experience-of-holding-a-rebase-token/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the Rebase Frequency Affect the User Experience of Holding a Rebase Token?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Decentralized-Finance-Volatility-and-Derivative-Hedging-Mechanics.webp)

A high rebase frequency can be confusing for users due to the constantly changing number of tokens, while a lower frequency can be more user-friendly but also more volatile.

### [How Can Users Verify the Code of a Rebase Token's Smart Contract?](https://learn.greeks.live/path/how-can-users-verify-the-code-of-a-rebase-tokens-smart-contract/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Can Users Verify the Code of a Rebase Token's Smart Contract?](https://learn.greeks.live/wp-content/uploads/2025/10/Secured-Digital-Asset-Key-Mechanism-Embedded-Within-Sophisticated-Financial-Hardware-Interface.webp)

Users can verify the code of a rebase token's smart contract by reviewing the project's open-source code on GitHub and checking for third-party security audits.

### [What Happens If a Rebase Token Consistently Fails to Meet Its Target Price?](https://learn.greeks.live/path/what-happens-if-a-rebase-token-consistently-fails-to-meet-its-target-price/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Happens If a Rebase Token Consistently Fails to Meet Its Target Price?](https://learn.greeks.live/wp-content/uploads/2025/10/Exposed-Mechanism-Revealing-Precision-in-Decentralized-Finance-Settlement-Layer-Mechanisms.webp)

A rebase token that consistently fails to meet its target price can be a sign of a failing project, leading to a death spiral or hyperinflation.

### [What Programming Languages Are Commonly Used to Write Rebase Token Smart Contracts?](https://learn.greeks.live/path/what-programming-languages-are-commonly-used-to-write-rebase-token-smart-contracts/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Programming Languages Are Commonly Used to Write Rebase Token Smart Contracts?](https://learn.greeks.live/wp-content/uploads/2025/10/Gleaming-Ovoid-Hardware-Asymmetry-Propelling-Blue-Translucent-Tokenized-Asset-Velocity.webp)

The most common programming language for rebase token smart contracts is Solidity, which is designed for the Ethereum blockchain.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://learn.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Path",
            "item": "https://learn.greeks.live/path/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "What Is a &#8220;Rebase Token&#8221;?",
            "item": "https://learn.greeks.live/path/what-is-a-rebase-token/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://learn.greeks.live/learn/what-is-a-rebase-token/"
    },
    "headline": "What Is a \"Rebase Token\"? \u238a Path",
    "description": "A cryptocurrency that adjusts its supply to control price while your share of the total value remains constant. \u238a Path",
    "url": "https://learn.greeks.live/learn/what-is-a-rebase-token/",
    "author": {
        "@type": "Person",
        "name": "Greeks.live",
        "url": "https://learn.greeks.live/author/greeks-live/"
    },
    "datePublished": "2025-12-04T08:46:09+00:00",
    "dateModified": "2025-12-04T08:46:09+00:00",
    "publisher": {
        "@type": "Organization",
        "name": "Greeks.live"
    },
    "articleSection": [
        "Path"
    ],
    "image": {
        "@type": "ImageObject",
        "url": "https://learn.greeks.live/wp-content/uploads/2025/10/Retro-Futurist-Data-Spool-Interfacing-with-Analytical-Hedging-Instruments-and-Legacy-System-Grills.jpg",
        "caption": "The close-up reveals an aged, beige apparatus featuring a slotted grille positioned near a tarnished, circular metallic platter accented with faded seafoam green sectors, traversed by a reflective dark planar element held by a crystalline mounting fixture. This visual juxtaposition powerfully suggests the challenges of integrating legacy infrastructure with modern decentralized ledger technology, specifically regarding derivatives pricing mechanisms and maintaining data integrity for complex structured products. The scene evokes contemplation on the evolution from centralized order books to permissionless AMMs impacting synthetic asset creation and delta-neutral strategies common in advanced options trading. Understanding historical data serialization, analogous to this physical spool, remains crucial for backtesting Black-Scholes adaptations against volatile cryptocurrency volatility surfaces. Furthermore, the visual tension mirrors the constant calibration required for impermanent loss mitigation in automated market maker pools or the stabilization of collateralization ratios within DeFi lending protocols, emphasizing the ongoing migration toward transparent, auditable financial instruments across the entire digital asset ecosystem."
    }
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://learn.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://learn.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebPage",
    "@id": "https://learn.greeks.live/path/what-is-a-rebase-token/",
    "mentions": [
        {
            "@type": "DefinedTerm",
            "name": "Decentralized Finance",
            "url": "https://learn.greeks.live/area/decentralized-finance/",
            "description": "Architecture \u238a 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."
        },
        {
            "@type": "DefinedTerm",
            "name": "Circulating Supply",
            "url": "https://learn.greeks.live/area/circulating-supply/",
            "description": "Distribution \u238a 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."
        },
        {
            "@type": "DefinedTerm",
            "name": "Cryptocurrency",
            "url": "https://learn.greeks.live/area/cryptocurrency/",
            "description": "Architecture \u238a Cryptocurrency, within the context of derivatives and trading, represents a decentralized ledger technology fundamentally altering asset representation and transfer mechanisms."
        },
        {
            "@type": "DefinedTerm",
            "name": "Rebase Mechanism",
            "url": "https://learn.greeks.live/area/rebase-mechanism/",
            "description": "Algorithm \u238a 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\u2014typically price fluctuations relative to a target value."
        },
        {
            "@type": "DefinedTerm",
            "name": "Rebase Token",
            "url": "https://learn.greeks.live/area/rebase-token/",
            "description": "Algorithm \u238a 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."
        },
        {
            "@type": "DefinedTerm",
            "name": "Rebase Tokens",
            "url": "https://learn.greeks.live/area/rebase-tokens/",
            "description": "Tokenomics \u238a Rebase tokens represent a novel approach to token supply dynamics, intrinsically linking token price to the circulating supply through an algorithmic adjustment mechanism."
        }
    ]
}
```


---

**Original URL:** https://learn.greeks.live/learn/what-is-a-rebase-token/
