# Stock split and reverse split

Source: https://docs.settlemint.com/docs/developers/corporate-actions/stock-split
Change the share count for every holder at a fixed ratio with a paused snapshot plus per-holder mints or burns.



A stock split multiplies every holder's share count by a fixed ratio; a reverse split (consolidation) divides it. The platform has no single re-denomination call today, so you run a split as a controlled composition: pause the asset, snapshot every holder, then mint or burn each holder's delta, and unpause. The pause makes the operation atomic from the market's point of view.

<Mermaid
  chart="flowchart TD
  Announce[&#x22;Announce ratio and effective date&#x22;] --> Pause[&#x22;Pause the asset<br/>PATCH /tokens/{token}/pause-state&#x22;]
  Pause --> Snapshot[&#x22;Snapshot all holders<br/>GET /tokens/{token}/holders&#x22;]
  Snapshot --> Direction{&#x22;Forward split<br/>or reverse split?&#x22;}
  Direction -->|&#x22;Forward (e.g. 2-for-1)&#x22;| MintDelta[&#x22;Batch mint each holder's delta<br/>POST /tokens/{token}/mints&#x22;]
  Direction -->|&#x22;Reverse (e.g. 1-for-10)&#x22;| BurnDelta[&#x22;Batch burn each holder's delta<br/>POST /tokens/{token}/burns&#x22;]
  MintDelta --> Cap[&#x22;Adjust the supply cap if capped<br/>PATCH /tokens/{token}/supply-cap&#x22;]
  BurnDelta --> Cap
  Cap --> Unpause[&#x22;Unpause the asset<br/>DELETE /tokens/{token}/pause-state&#x22;]
  Unpause --> Verify[&#x22;Verify supply = old supply x ratio<br/>and update the price feed&#x22;]"
/>

## Prerequisites [#prerequisites]

* API key for a wallet holding the Supply Management role for the mints and burns, and the governance role for the pause and the cap change.
* For a forward split on a capped token: raise the cap before minting, since the post-split supply exceeds the old cap by definition.
* A stated rounding policy for reverse splits, announced with the ratio.

## Running the split [#running-the-split]

<Steps>
  <Step>
    ### Pause the asset [#pause-the-asset]

    `PATCH /api/v2/tokens/{tokenAddress}/pause-state` stops transfers so no balance changes between snapshot and execution. Run the split in the announced window; holders see a paused asset, not a half-split one.
  </Step>

  <Step>
    ### Snapshot every holder [#snapshot-every-holder]

    With transfers paused, `GET /api/v2/tokens/{tokenAddress}/holders` is a consistent snapshot. Paginate with `limit=200` until you hold the complete set, and record total supply from `GET .../stats/total-supply` as the reconciliation baseline.
  </Step>

  <Step>
    ### Compute each holder's delta [#compute-each-holders-delta]

    For a forward split at ratio R, the delta to mint is `balance x (R - 1)`. A 2-for-1 split mints each holder their current balance again. For a reverse split at 1-for-N, the target is `floor(balance / N)` whole post-split units and the delta to burn is `balance - target x N`. Token decimals make forward splits exact; reverse splits leave sub-unit remainders that your rounding policy governs, typically burn-to-floor with cash compensation for the burned fraction.
  </Step>

  <Step>
    ### Mint or burn the deltas [#mint-or-burn-the-deltas]

    For a forward split, mint each holder's delta in groups of up to 100 recipients.

    ```bash
    curl -X POST "https://your-platform.example.com/api/v2/tokens/0x9459D52E60edBD3178f00F9055f6C117a21b4220/mints" \
      -H "X-Api-Key: sm_dalp_test_xxxxxxxxxxxxxxxx" \
      -H "Idempotency-Key: split-nwih-2for1-batch-001" \
      -H "Content-Type: application/json" \
      -d '{
        "recipients": ["0x742d35Cc6634C0532925a3b844Bc9e7595f0bEb"],
        "amounts": ["1000000000000000000000"]
      }'
    ```

    Reverse split, same batching with `POST .../burns` and `addresses`/`amounts`. Burning a holder's delta needs no holder signature; the Supply Management role authorizes it, and the burn pre-check verifies each holder's indexed balance covers the amount. One `Idempotency-Key` per batch; a retry after a timeout reattaches instead of double-executing.
  </Step>

  <Step>
    ### Adjust the cap, unpause, verify [#adjust-the-cap-unpause-verify]

    If the token is capped, set the post-split cap with `PATCH .../supply-cap` and body `{ "newCap": "..." }`. Unpause with `DELETE .../pause-state`. Then verify: new total supply must equal the baseline times the ratio (minus recorded reverse-split remainders), and each spot-checked holder must hold `old balance x ratio`. Update the asset's price feed so the per-share reference price reflects the new count; see [publish a feed update](/docs/operators/data-feeds/publish-feed-update).
  </Step>
</Steps>

## Operational notes [#operational-notes]

* The mints and burns are supply operations, not a re-denomination: on-chain history shows the old balances before the effective date. State the ratio and effective date in the asset's records so downstream consumers interpret history correctly.
* Batches are atomic per request. Sequence them so a mid-run failure leaves a resumable state: keep the allocation table, mark each batch's transaction hash as it confirms, and resume from the first unconfirmed batch.
* For reverse splits, pay the announced cash compensation for burned fractions as a cash-token distribution, following the one-off path in the [cash dividend guide](/docs/developers/corporate-actions/cash-dividend).

## Related guides [#related-guides]

* [Bonus issue](/docs/developers/corporate-actions/bonus-issue) is the same snapshot-and-mint pattern without the pause and ratio bookkeeping.
* [Decrease of capital](/docs/developers/corporate-actions/capital-decrease) covers burns that reduce capital rather than re-denominate it.
* [Pause and unpause assets](/docs/developers/asset-servicing/pause-unpause-asset) documents the pause primitive in depth.