Yes this is essentially correct. I highly recommend reading the whitepaper or litepaper on our site because it will explain everything about rebasing. Check it out at: baseprotocol.org
If that's your answer, then we're back to the point where I questioned your method to stabilize price, because that is where the confusion began. According to the general idea stated on this thread, as well as confirmed by you on the answer I quoted above, stability achieved by airdropping token to holders, proportional to the increment of crypto marketcap. But, at one point of your explanation on this thread, as well as what's stated on what I screenshotted from your WP below, your attempt to stabilize price only stretched to increasing and decreasing supplies, while the actualization of price correction themselves depends entirely on holders action to sell and buy. In other words, if they wanted to get (for example) from 1 BASE to 2 BASE, they need to bid 1 extra BASE at certain price. They need to BUY, because token will not be airdropped to them. And only after a transaction finalized, a stabilized price will occur.
Tell me, were the people who write WP and moderating this thread different people with different understanding of how the project works?
Rebasing only affects supply, what you're talking about now is about how arbitrage can affect price to also help stabilize. At the end of the day it's very simple:
BASE price above peg price = Supply increase
BASE price below peg price = Supply decrease
We do increase the supply. As it shows in our whitepaper, if supply is 1, and price doubles, then after a rebase supply will now be 2. That supply change affects the entire BASE ecosystem, and every single wallet accordingly.
