The rebase is a function of the contract that can be called everyday by anyone, when it does the mechanism automatically adjust the supply based on the last 24 hours time-weighted average price of DIGG against Bitcoin. If the price is above 1.05, supply is increased. If the price is below 0.95, supply is contracted. If the price is between 0.95 and 1.05, supply stays the same, this is called a "neutral" rebase. The amount that the supply can increase/decrease is limited to a buffer of 10%, what this means is that if the price of DIGG is at 0.50 against Bitcoin the rebase won't contract 50% Rather it will only do a 1/10 = 5%, same if the price is trading at 1.50 against Bitcoin, the rebase will only expand the supply a 5%.