What Is Rebase Crypto

Making Money, or in other words, creating assets has become quite easy with the rising popularity of cryptocurrency but with a risky proportion. And now that you are in the right place now, you will get a step-by-step guide on how to start buying and trading cryptos.

So, Let’s deep dive in the world of cryptocurrency and get the answers to the most common questions – What Is Rebase Crypto

What is a REBASE?

This change to the total token supply is known as a rebase. With respect to the total supply, the proportion of tokens each holder has will stay the same. But the # of tokens each holder has will either increase or decrease based on the rebase.

Why do some crypto projects REBASE tokens?

Projects that use rebasing generally do it as a reward for token holders, and incentivize investors holding the token rather than selling. It is important to remember that token inflation/deflation can affect token price, especially over the long-run.

What is a REBASE (price elastic) token?

A rebase (or price-elastic) token is designed in a way that the circulating token supply adjusts (increases or decreases) automatically according to a token’s price fluctuations. This expansion and contraction is what we call a rebase mechanism.

What is the difference between stablecoins and REBASE tokens?

However, unlike stablecoins, rebase tokens’ have an elastic supply, meaning the circulating supply adjusts accordingly to supply and demand, without changing the value of the tokens in users’ wallets. A rebase protocol happens routinely. For example, Ampleforth’s AMPL has a rebase scheduled every 24 hours, with a target price of $1.