Wait, aren’t many cryptocurrencies operating with a changing supply? Yes, somewhat. Currently, 6.25 new BTC is minted with every block. After the 2024 halving, this is going to be reduced to 3.125 per block. It is a predictable rate, so we can estimate how much BTC will exist next year or after the next halving. Supply-elastic tokens work differently. As mentioned, the rebasing mechanism adjusts the token circulating supply periodically. What does this mean from a practical standpoint? The amount of tokens in user wallets changes if a rebase occurs. The idea is that your holdings proportional to the total supply haven’t changed with the rebase. If you had 1% of the supply before the rebase, you should still have 1% after it, even if the number of coins in your wallet has changed. In essence, you retain your share of the network no matter what the price is.