A Token Rebase is an adjustment (increase or decrease) that is made to the circulating supply of a token.

Token rebases are an important part of the crypto ecosystem, as they can provide a way for the supply of a particular token to remain in line with a desired set of rules.

In the context of decentralized finance (DeFi), a token rebase refers to a process by which the supply of a DeFi token is automatically adjusted in response to changes in market conditions or other factors.

For example, in the case of algorithmic stable coins a token rebase can ensure that these remain stable and with a consistent value, even in the face of significant market volatility or other changes.

Token rebases are often used in conjunction with other mechanisms, such as staking or governance, in order to provide additional incentives for users to hold and support the DeFi token. This can help to increase the adoption and use of the token, and it can help to ensure the long-term viability and success of the DeFi protocol or application.

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