A token whose supply automatically expands or contracts across all wallets, so your balance changes while your ownership share does not.
With a rebase, everyone's balance is multiplied by the same factor on a schedule. Your percentage of supply is unchanged, so a positive rebase is not income in any meaningful sense.
This confuses people badly, and it breaks things. A liquidity-pool or lending market that does not explicitly support rebasing can mis-account the balance change, which has caused real losses.
Example: hold 1,000 of 1m supply, 0.1%. A 10% positive rebase gives you 1,100 of 1.1m supply, still 0.1%. If price fell 10% at the same time, your position value is identical and the larger number means nothing. liquid-staking receipts sometimes use rebasing too, for a legitimate reason.
Original diagrams for the ideas on this page. Illustrative, not real market data.
The bid-ask spread. Buy orders sit below, sell orders above, and the gap between the best bid (50.01) and best ask (50.04) is the spread you pay to cross. Bar length shows the size resting at each price.
Educational only, not advice. Spotted an error? Post in Site Feedback.