Describing the Rebase Mechanism in detail.
A Rebase Mechanism is one with circulating supply expands or contracts as the token price changes. This increase or decrease in supply is accomplished through a process known as rebasing. When a rebase happens, the token's supply is increased or decreased algorithmically based on the current price of each token.
iDot Finance uses a positive rebase formula to increase the token supply, allowing iDot holders to continue growing their tokens in the same way that a traditional staking protocol would. Our use of a rebasing token, on the other hand, eliminates the need to approve and traditionally stake your tokens. This method makes staking easier and seamless.
The Rebase Mechanism is supported by an Rebase Pool or RP that is guaranteed and suppored by the trading volume and tax collected from it.