Yield rebasing refers to a mechanism used in certain cryptocurrency projects to adjust the supply of tokens based on the yield generated by users. This adjustment aims to maintain the token’s value or incentivize specific behaviors among holders.In yield rebasing, the total supply of tokens is increased or decreased periodically. If a user holds tokens, they may find their balance automatically adjusted upwards or downwards. For example, if the yield is positive, a holder’s token balance may increase, reflecting the interest earned on their holdings.This process can create a dynamic financial environment where the perceived value of the token changes frequently. While it enhances engagement and rewards for users who hold the token, it can also lead to confusion about actual ownership due to the fluctuating supply.Ultimately, yield rebasing seeks to create a sustainable ecosystem where users are incentivized to hold and participate, while also addressing issues like inflation and token value stabilization.