The rebase protocol is one of the recent components incorporated into blockchain technology. It is a system to increase or decrease tokens in circulation based on the token market value. The mechanism seems exciting, but it has more disadvantages. One of my friends called months ago about a token he would like to invest. I had a glance at the project and the website and it doesn’t look like a project to dip in $1,000,000. I shared my feedback with him and he said... he won’t buy it. The name of the token is GreenMoonZilla.
The token launched at $0.0000000001290. I can’t remember the exact figures, but I remember it was up to 10 zeros after the decimal. The coin did over 3000% within the first 7 days and it kept shooting up. On the surface, one would think they are missing out on such a mighty pump, but in reality, as the coin was appreciating, the supply in people’s wallets was reduced. That is rebase.
Reward tokens?
This is just like staking to get another token reward, but you just have to some random shit coins and you will get stable coins or coins with some actual use, like BUSD, BTC, AXIE, and many more. And that seems cool, but sometimes the coin you are holding will lose value and that makes you lose.
Some Pros
It is good for a long time if they have a sustainable structure.
The reward can be in stable coins or coins with actual use and that seems pretty nice for just holding a coin in the wallet.
Consistent income
Some Cons
Uncertain and causes FUD. Your portfolio of $2,000 can turn $200 overnight.
Gains can reduce based on token values.
Rebase
As I wrote, rebase makes you think you are rich when you are not rich. For instance, you hold 100 tokens and each token is $10, which means your wallet is $1,000. If there is an increase of 1% in the token value, your wallet should be $1,010, but the rebasing mechanism will remove 1 tokens from your wallet, then you will have 99 tokens that are still worth $1,000.
The main rebasing mechanism adjusts the price and the supply, then your money remains the same. The part where this mechanism makes sense is when rebase is used along with the reward mechanism.
Currently, the coin market cap has lost track of the Greenmoonzilla because of the rebasing mechanism and poocoin also mixed it up a lot. It’s complex to keep track of rebase tokens.
What is your thought about rebase and reward tokens? And what has been your experience?
Hit me up in the comment section.
Thank you!
My name is @tykee (Barlogun Michael), a web developer, Civil engineer, content writer and the founder of Meshboc Technology & Digital Services Limited. I am using my content to share my opinions on tech, lifestyle, and finance, to promote myself and impact my readers. I like to learn. Education is the most thing I cherish.
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