Nonmonotonic reasoning provides rigorous techniques for reasoning with incomplete information. Until recently the dynamics of nonmonotonic reasoning approaches has attracted little attention. This paper studies the dynamics of defeasible logic, a simple and efficient form of nonmonotonic reasoning based on defeasible rules and priorities. We define revision and contraction operators and propose postulates. Our postulates try to follow the ideas of AGM belief revision as far as possible, but some AGM postulates clearly contradict the nonmonotonic nature of defeasible logic, as we explain. Finally we verify that the operators satisfy the postulates.