Clear DefinitionsRebase Token
1 min read
Pronunciation
[ree‑bays to-ken]
Analogy
A rebase token is like a stock split in reverse—if the price is too high, you issue more shares; if too low, you consolidate shares.
Definition
A token whose individual balances and total supply are periodically adjusted (rebased) to achieve a target price or supply metric.
Key Points Intro
Rebase tokens maintain targets via:
Key Points
Periodic rebase: Automated supply adjustment at set intervals.
Balance scaling: All holder balances multiplied by rebase factor.
Oracle-driven: Rebase factor computed from price feeds.
Non‑dilutive effect: Relative ownership percentages remain constant.
Example
Technical Deep Dive
Rebase controller computes `supplyDelta = totalSupply × (marketPrice – targetPrice)/targetPrice`. Calls `token.rebase(epoch, supplyDelta)`. Token contract updates `totalSupply` and `gonsPerFragment`, recalculating `balanceOf` dynamically without looping through holders.
Security Warning
Frequent rebases can disrupt wallets and DeFi integrations that assume static balances; front‑end support required.
Caveat
Rebase can lead to volatility in dollar terms despite stable peg objective.
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