> For the complete documentation index, see [llms.txt](https://revo-dao.gitbook.io/revodao.whitepaper011/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://revo-dao.gitbook.io/revodao.whitepaper011/what-is-a-rebase-token.md).

# What is a Rebase Token?

A Rebase Token is one whose <mark style="color:red;">**circulating supply expands or contracts**</mark> due to various token metrics. This increase or decrease in supply works through a mechanism called rebasing. When a rebase occurs, the token supply is algorithmically increased or decreased based on the current price of each token.

**​**\ <mark style="color:blue;">**Revodao Finance**</mark> takes advantage of a *"Positive Rebase"* formula that increases the token supply, allowing $RevoDao holders to keep growing their tokens similar to traditional staking protocols. However, using a rebasing token eliminates the need to approve and traditionally stake your tokens.

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**The positive rebase is backed by The RevoDao network, which is ensured and supported by the token's buy and sell fees.**


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