Stock Splits

How we handle tradfi rebasing

As discussed in DeFi (Wrapped dShares), Dinari dShares are designed to account for the nuances of stock splits and reverse splits. We've developed a system that maintains 1-to-1 token accounting for our dShares that accommodates a variety of events, including splits. Our core tokens rebase to account for the change in underlying share quantity, automatically updating token balances for all holders.

Split Execution

The process unfolds like this

1. The company declares the split and Dinari is notified via our clearing partners when the split will occur. Stock splits are executed outside of active trading hours to allow service providers and brokerages time to update their systems.

2. Before the split, Dinari verifies the split ratio and any other details.

3. At the end of trading hours the day before a split, Dinari temporarily stops accepting new orders and cancels any existing orders for the dShare. During this split period, any new orders for the dShare will be automatically cancelled by Dinari. This suspension does not impact orders for other dShares and is limited to the asset experiencing a split.

4. Dinari executes the token rebasing for the dShare, verifying resulting balance changes.

5. Before trading opens again, Dinari removes the temporary suspension on the dShare and new orders are accepted using post-split share quantities.

Integration Considerations

If you have integrated with Dinari or are interpreting our historical data, please take splits into consideration when computing volumes, order value, and other accounting.

The dShare token contract will emit an event when the internal split ratio is updated. The internal split ratio (balancePerShare) includes the cumulative split changes since token deployment.

/// @dev Emitted when split factor is updated
event BalancePerShareSet(uint256 balancePerShare);

Additional split data can be queried from our API.