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

# Positive Rebasing

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.

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

With the onset of rebase tokens, it has become possible to payout huge APY's. However, as we have seen with numerous OHM & TOMB forks, it is simply not possible to inflate a token supply so quickly without the USD value eventually decreasing. We have to counter this inflation, this is where CryptoHeist Protocol differs from the competition.

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The positive rebase is backed by an RFV, Treasury & Fire Pit which is ensured and supported by the token’s transaction fees.
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