> For the complete documentation index, see [llms.txt](https://admin-176.gitbook.io/1-million-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://admin-176.gitbook.io/1-million-dao/about-1-million-dao/what-is-a-rebase-function.md).

# What is a Rebase function?

A Rebase function is one whose circulating supply expands or contracts due to changes in the token price. This increase or decrease in supply works with a mechanism called rebasing. When a rebase occurs, the supply of the token is increased or decreased algorithmically, based on the current price of each token. 

1 Million DAO takes advantage of a positive rebase formula which increases the token supply allowing $OMD holders to keep growing their tokens, like in a traditional staking protocol. However our use of a rebasing token eliminates the need to approve and traditionally stake your tokens.  

Positive rebase is backed by a Strong Support Mechanism (SSM).