What Role Do Smart Contracts Play in the Rebase Process?

Smart contracts are the core of the rebase process. They are self-executing contracts with the terms of the agreement directly written into code.

The smart contract for a rebase token contains the logic for the rebase mechanism, including the target price, the rebase frequency, and the formula for adjusting the supply. The smart contract automatically executes the rebase, ensuring that the process is transparent and tamper-proof.

It also handles the distribution of new tokens or the removal of existing tokens from holders' wallets.