A supply adjustment where token balances change directly rather than the token price moving.
A rebase is a supply-adjustment mechanism where the number of tokens in every holder's wallet changes proportionally, rather than the token price moving. Yield-bearing stablecoins sometimes use rebases to distribute reserve interest — your balance grows automatically each epoch. Rebases can create tax and accounting complexity, which is why many issuers prefer a rising-exchange-rate design (like Lido's stETH) instead.