Rebase
A mechanism used by some algorithmic stablecoins where the total supply of tokens automatically increases or decreases to maintain a target price. Unlike traditional supply changes, rebasing adjusts balances in all wallets simultaneously.
Why It Matters
Rebasing is an automatic adjustment of the supply of a cryptocurrency to manage its price or value. This concept is important for understanding how certain stablecoins or elastic supply tokens attempt to maintain their value stability.
Example
In a rebase, if a token's price drops significantly, the supply might be increased to lower the price per token back to a target value. This can create a unique dynamic in trading and valuation.
Beginner Context
For beginners, learning about rebasing is crucial as it introduces the idea of active supply management in cryptocurrencies. It underscores how different projects implement unique strategies to maintain price levels.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Related Terms
Token
A digital asset created on an existing blockchain platform using smart contracts. Tokens can represent various things including utility, governance rights, or real-world assets.
ATL
All-Time Low. The lowest price ever reached by a cryptocurrency or asset.
Bullish
A positive outlook on the price direction of a cryptocurrency or the market as a whole. A bullish investor believes prices will rise. The opposite of bearish.
Hard Fork
A major change to a blockchain protocol that is not backward-compatible. Nodes that do not upgrade to the new rules are rejected by the new chain, sometimes creating two separate blockchains. Bitcoin Cash was created via a hard fork of Bitcoin.
Fiat Currency
Money issued by a government that is not backed by a physical commodity like gold. Examples include the US Dollar, Euro, and British Pound. In crypto, fiat is often used as the starting point to buy digital assets.