Intro
A rebase, or elastic, token is a cryptocurrency whose supply is algorithmically adjusted in order to control its price. Similar to stablecoins, rebase tokens are usually pegged to another asset. But instead of using reserves to maintain the peg, rebase tokens automatically burn tokens in circulation or mint new tokens.
The supply of a rebase token can be highly volatile, but its price tends to remain steady depending on which asset's price it’s tracking.The code behind every cryptocurrency specifies rules for the coin’s supply, meaning all the ways coins can be created (minted) or destroyed (burned). But it is uncommon to design those rules with a specific price in mind
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