Explore the innovative mechanism of rebase tokens, which is designed to stabilize prices and adjust token supplies automatically.
Rebase tokens are a particular kind of cryptocurrency that periodically (typically daily or multiple times a day) modifies its total supply.
The adjustments seek to stabilize the rebased token’s price or target a specific value through methods that increase or decrease the token supply in reaction to price deviations from the target. A positive rebase, for example, increases the token supply and reduces the balances of current holders if the token’s price climbs above the target. On the other hand, a negative rebase lowers the supply and increases the value of existing holdings if the price drops below the target.
