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

# What is a Rebase Token?

A Rebase Token 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. 

Solar’s SAP takes advantage of a positive rebase formula which increases the token supply allowing <mark style="color:yellow;">$SOLAR</mark> 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. &#x20;

**The positive rebase is backed by an RFV which is ensured and supported by the token’s buy and sell fees.**&#x20;