{
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  "schemaVersion": "1.0.0",
  "id": "rebasing-tokens",
  "canonical": "https://degreesofsatoshi.com/encyclopedia/rebasing-tokens/",
  "collection": "defi",
  "title": "Rebasing tokens: balances can change without a transfer",
  "description": "Understand balances that change through rebasing, distinguish token units from ownership share and examine integration-specific accounting risks.",
  "aliases": [],
  "dates": {
    "published": "2026-10-02",
    "modified": "2026-10-02",
    "verified": "2026-10-02T18:19:48.887Z",
    "dataAsOf": "2026-10-02"
  },
  "authorship": {
    "publisher": "Degrees of Satoshi editorial project",
    "process": "AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied."
  },
  "quickAnswer": {
    "text": "A rebasing token can change displayed holder balances through a protocol-wide accounting adjustment without an ordinary transfer to each holder. The purpose and formula differ by token. Lido’s stETH uses shares to reflect changes in pooled ether, including rewards and potential penalties; more displayed units alone do not prove a positive return in another currency.",
    "claimId": "rebasing-tokens-quick-answer",
    "sourceIds": [
      "lido-steth",
      "erc20"
    ]
  },
  "keyFacts": [
    {
      "label": "Accounting",
      "value": "Lido derives stETH balances from shares and pooled ether.",
      "sourceIds": [
        "lido-steth"
      ],
      "id": "accounting",
      "claimId": "rebasing-tokens-fact-accounting"
    },
    {
      "label": "Direction",
      "value": "The documented stETH rebase can be positive or negative.",
      "sourceIds": [
        "lido-steth"
      ],
      "id": "direction",
      "claimId": "rebasing-tokens-fact-direction"
    },
    {
      "label": "Integration",
      "value": "Uniswap v3 liquidity providers can bear losses from a negative rebase when their position becomes active.",
      "sourceIds": [
        "uniswap-token-issues"
      ],
      "id": "integration",
      "claimId": "rebasing-tokens-fact-integration"
    }
  ],
  "prerequisites": [
    "erc-20-tokens"
  ],
  "sections": [
    {
      "id": "proportion",
      "heading": "A balance increase need not increase ownership share",
      "sourceIds": [
        "lido-steth"
      ],
      "paragraphs": [
        "In a simplified proportional rebase, a holder with 100 of 1,000 displayed units owns 10%. If every balance rises 5%, the holder has 105 of 1,050 units and still owns 10%.",
        "Whether that position is economically better depends on the underlying assets and valuation. The example is proportional arithmetic, not a forecast or a claim that all rebasing tokens use the same mechanism."
      ]
    },
    {
      "id": "records",
      "heading": "Transfer events may not explain the current balance",
      "sourceIds": [
        "lido-steth"
      ],
      "paragraphs": [
        "Lido documents that stETH does not emit a Transfer event for a rebase. Summing ordinary transfer logs therefore need not reproduce a holder’s current stETH balance.",
        "An integration can account in underlying shares and convert for display. It must still use the token’s actual conversion and rounding rules; assuming all balances remain fixed between transfers is unsafe."
      ]
    },
    {
      "id": "compatibility",
      "heading": "A pool needs to support the token’s accounting",
      "sourceIds": [
        "uniswap-token-issues",
        "lido-steth"
      ],
      "paragraphs": [
        "Uniswap’s v3 documentation distinguishes rebasing tokens from fee-on-transfer tokens: pool creation and swapping can succeed, while a negative rebase can impose losses on active liquidity positions.",
        "Lido offers a non-rebasing wrapper, wstETH, whose unit count stays fixed absent transfers, minting or burning while its stETH conversion rate changes. That changes the representation without removing exposure to the underlying staking system."
      ]
    }
  ],
  "faq": [
    {
      "question": "Does a positive rebase guarantee a dollar profit?",
      "answer": "No. A larger balance can coexist with a lower market price or other losses. Compare the complete position in a stated unit of account, rather than treating new displayed units as guaranteed purchasing power.",
      "sourceIds": [
        "lido-steth",
        "erc20"
      ]
    }
  ],
  "claims": [
    {
      "id": "rebasing-tokens-quick-answer",
      "articleSlug": "rebasing-tokens",
      "statement": "A rebasing token can change displayed holder balances through a protocol-wide accounting adjustment without an ordinary transfer to each holder. The purpose and formula differ by token. Lido’s stETH uses shares to reflect changes in pooled ether, including rewards and potential penalties; more displayed units alone do not prove a positive return in another currency.",
      "sourceIds": [
        "source-6ff5ad291aef20ef",
        "source-ac4ad503a55127bb"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-6ff5ad291aef20ef",
          "locator": "stETH; wstETH; Withdrawal queue"
        },
        {
          "sourceId": "source-ac4ad503a55127bb",
          "locator": "totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:19:48.887Z",
        "reviewer": "automated independent verification — Codex root, separate from final-ten DeFi author",
        "notes": [
          "Read Lido integration guide share accounting, positive/negative rebases, absence of Transfer events at rebase, wrapper behavior, and v3 negative-rebase LP warning. Recomputed100/1000=105/1050=.1. No guaranteed economic gain inferred from unit count."
        ]
      }
    },
    {
      "id": "rebasing-tokens-fact-accounting",
      "articleSlug": "rebasing-tokens",
      "statement": "Accounting: Lido derives stETH balances from shares and pooled ether.",
      "sourceIds": [
        "source-6ff5ad291aef20ef"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-6ff5ad291aef20ef",
          "locator": "stETH; wstETH; Withdrawal queue"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:19:48.887Z",
        "reviewer": "automated independent verification — Codex root, separate from final-ten DeFi author",
        "notes": [
          "Read Lido integration guide share accounting, positive/negative rebases, absence of Transfer events at rebase, wrapper behavior, and v3 negative-rebase LP warning. Recomputed100/1000=105/1050=.1. No guaranteed economic gain inferred from unit count."
        ]
      }
    },
    {
      "id": "rebasing-tokens-fact-direction",
      "articleSlug": "rebasing-tokens",
      "statement": "Direction: The documented stETH rebase can be positive or negative.",
      "sourceIds": [
        "source-6ff5ad291aef20ef"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-6ff5ad291aef20ef",
          "locator": "stETH; wstETH; Withdrawal queue"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
        "status": "verified",
        "method": "independent automated source review",
        "checkedAt": "2026-10-02T18:19:48.887Z",
        "reviewer": "automated independent verification — Codex root, separate from final-ten DeFi author",
        "notes": [
          "Read Lido integration guide share accounting, positive/negative rebases, absence of Transfer events at rebase, wrapper behavior, and v3 negative-rebase LP warning. Recomputed100/1000=105/1050=.1. No guaranteed economic gain inferred from unit count."
        ]
      }
    },
    {
      "id": "rebasing-tokens-fact-integration",
      "articleSlug": "rebasing-tokens",
      "statement": "Integration: Uniswap v3 liquidity providers can bear losses from a negative rebase when their position becomes active.",
      "sourceIds": [
        "source-1dfb73e432851474"
      ],
      "sourceLocators": [
        {
          "sourceId": "source-1dfb73e432851474",
          "locator": "Fee-on-transfer tokens; Rebasing tokens"
        }
      ],
      "scope": {
        "collection": "defi",
        "dataAsOf": "2026-10-02",
        "blockHeight": null
      },
      "qualification": "",
      "evidenceStatus": "documented",
      "verification": {
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        "checkedAt": "2026-10-02T18:19:48.887Z",
        "reviewer": "automated independent verification — Codex root, separate from final-ten DeFi author",
        "notes": [
          "Read Lido integration guide share accounting, positive/negative rebases, absence of Transfer events at rebase, wrapper behavior, and v3 negative-rebase LP warning. Recomputed100/1000=105/1050=.1. No guaranteed economic gain inferred from unit count."
        ]
      }
    }
  ],
  "sources": [
    {
      "id": "lido-steth",
      "label": "stETH integration guide",
      "publisher": "Lido",
      "url": "https://docs.lido.fi/guides/lido-tokens-integration-guide/",
      "locator": "stETH; wstETH; Withdrawal queue",
      "note": "Rebasing balances, wrapped shares and asynchronous withdrawal accounting.",
      "version": null,
      "checkedAt": "2026-10-02T17:03:45.519Z",
      "contentSha256": "aa4330581cab2fccdb27f78d7046ddba8221464162088df97ca00697bb591a88",
      "recordId": "source-6ff5ad291aef20ef"
    },
    {
      "id": "erc20",
      "label": "ERC-20 Token Standard",
      "publisher": "Ethereum Improvement Proposals",
      "url": "https://eips.ethereum.org/EIPS/eip-20",
      "locator": "totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer",
      "note": "Token supply, displayed units and balance accounting.",
      "version": "ERC-20",
      "checkedAt": "2026-10-02T17:03:45.826Z",
      "contentSha256": "98bda5e4707841a68684879878c4c165fdaa47d89ed69ebf232ab9be06ff050e",
      "recordId": "source-ac4ad503a55127bb"
    },
    {
      "id": "uniswap-token-issues",
      "label": "Token integration issues",
      "publisher": "Uniswap",
      "url": "https://docs.uniswap.org/concepts/protocol/integration-issues",
      "locator": "Fee-on-transfer tokens; Rebasing tokens",
      "note": "Token behavior can break assumptions or impose costs on pool positions.",
      "version": "Uniswap documentation",
      "checkedAt": "2026-10-02T17:03:45.896Z",
      "contentSha256": "0fe6244df66381a1c89b47698d361b13122ad38cac5abbfce7c9c52edda23fe4",
      "recordId": "source-1dfb73e432851474"
    }
  ],
  "related": {
    "articles": [
      "wrapped-staked-ether",
      "realized-vs-projected-yield",
      "fee-on-transfer-tokens"
    ],
    "dossiers": [],
    "wallets": []
  },
  "revisionHistory": [
    {
      "date": "2026-10-02",
      "kind": "published",
      "summary": "First publication after primary-source research and independent automated verification."
    }
  ],
  "citation": "Degrees of Satoshi editorial project. “Rebasing tokens: balances can change without a transfer.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/rebasing-tokens/"
}