A rebasing token is a unique type of cryptocurrency that operates on an elastic supply protocol. This protocol allows the circulating supply of the token to automatically adjust, or "rebase," in response to changes in market price. This elasticity is governed by smart contracts on the blockchain, ensuring transparency and security in the rebasing process. The goal of these rebasing mechanisms is to achieve price stability, similar to how a stablecoin operates, but through a dynamic supply. This innovative approach to supply and demand in the crypto market offers a new way for token holders to speculate on price movements. Whether you're a seasoned trader or a newcomer to the world of DeFi, understanding rebasing tokens and their elastic supply can be a valuable addition to your cryptocurrency knowledge.
