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.
Glossar
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.
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.
Smart Contract
Code ⎊ The contract is fundamentally self-executing code deployed on a distributed ledger, embodying the terms of the agreement in an immutable format.
Rebase Mechanism
Mechanism ⎊ A supply adjustment technique where the total number of outstanding tokens is proportionally altered across all holders based on a predetermined algorithmic rule set.