Ampleforth Governance

What is the Ampleforth Protocol?

The Ampleforth protocol is a decentralized financial system built on the Ethereum blockchain, producing a unique unit of account called AMPL. This protocol, part of the Ampleforth Elastic Finance Ecosystem, utilizes the AMPL token for lending, borrowing, creating derivatives, and serving as collateral for a decentralized stablecoin.

Ampleforth addresses price volatility, allowing cryptocurrencies to function as reliable units of account. It separates the goal of creating a durable unit of account from attempts to store near-term value, aiming to rebuild the financial stack with modular, durable blocks. AMPL serves as a building block, enabling the creation of stable on-chain contracts without reliance on centralized entities.

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Recent Video Interview

Main points of the interview:

• Ampleforth enables robust contract denomination and resisting natural market forces.
• Ample's protocol adjusts token quantities across user wallets based on USD exchange rates.
• Unlike stablecoins, AMPL doesn't seek to eliminate volatility but rather transfers it, maintaining resilience against market shifts.
• Ampleforth's two-and-a-half-year track record, demonstrating its efficacy in separating asset price volatility from token quantity volatility.

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Tokens

AMPL: An ERC-20 token, AMPL functions as the unit of account in the Ampleforth ecosystem. Its supply dynamically adjusts based on market demand, deviating temporarily from its target to ensure long-term stability.

FORTH: FORTH token holders wield governance power, steering the trajectory of funds managed by the DAO. This governance is facilitated through a protocol-enforced maximum annual inflation of 2% for the FORTH token. The DAO retains control over new FORTH token emissions, with token holders annually voting on whether to skip or mint up to the full allocated amount. The resulting proceeds from FORTH minting are at the discretion of the DAO for allocation. Additionally, pending grant proposals may empower FORTH token holders to vote on grants for initiatives fostering advancements in the Ampleforth and wider elastic finance ecosystem.

How the Ampleforth Protocol Works

The Ampleforth Protocol employs an elastic supply policy, automatically expanding or contracting the quantity of tokens in user wallets based on market demand to maintain a stable price.

Elastic Supply Policy

• Expansion: Occurs when AMPL price exceeds 1 USD, increasing token quantity in user wallets.
• Contraction: Takes place when AMPL price falls below 1 USD, decreasing token quantity in user wallets.
• AMPL experiences supply volatility, but contracts denominated using AMPL remain stable in the long run.

Decentralized Lending

AMPL facilitates decentralized debt denomination, overcoming the challenges of borrowing with price-volatile currencies like ETH. AMPL-denominated loans provide stability for borrowers, eliminating dependency on centralized stablecoins. AMPL is already available for lending and borrowing on AAVE.

Governance and Progression

The Ampleforth protocol's governance involves a series of steps, from discussions to binding votes. FORTH token holders drive decision-making through proposals and voting, ensuring the protocol's evolution aligns with the community's consensus.

Steps:

• Discussion: Community-driven discussions on various platforms.
• Proposals (AIPs / ACCPs): Formal documents proposing protocol changes.
• Targeted Discussion: Finalizing issues and formalizing off-chain consensus.
• Off-chain Signaling: Non-binding sentiment gathering from token holders.
• Technical Development: Code implementation, testing, and security audits.
• Binding Vote / Deployment: On-chain voting for protocol changes.

Overview:

• FORTH token has a protocol-enforced maximum inflation of 2% per year.
• DAO-controlled emissions of new FORTH tokens.
• Annual votes on FORTH minting and fund usage.
• DAO treasury manages protocol assets.

The FORTH DAO treasury holds Protocol Owned Liquidity, allowing FORTH token holders to direct treasury assets for liquidity addition or removal.

Wrapped AMPL

Wrapped AMPL (WAMPL) is a token that facilitates integrations on both centralized and decentralized platforms. It simplifies technical considerations, maintains easy understanding for users, and acts as a bridge between AMPL and other platforms.

Key Benefits:

• Fully redeemable on-chain for AMPL.
• Zero technical integration for platforms supporting ERC-20 tokens.
• Easy to understand, following traditional market expectations.
• Non-rebasing with a simple floating price.
• Fixed supply of 10 million tokens, fostering network effects.

Team Background

Ampleforth, founded by Evan Kuo, a mechatronics, robotics, and automation engineering graduate from UC Berkeley, is led by a team of primarily engineering professionals. Kuo, with a background in predictive auction products and prior CEO experience at Pythagoras Pizza, now serves as CEO of the Ampleforth Foundation.

The team includes Brandon Iles, a co-founder and former senior software engineer at Uber and Google. With over a dozen team members, mainly based in the San Francisco Bay Area, Ampleforth is known for its innovative protocol in decentralized finance. Kuo's diverse expertise, along with a team focused on engineering, highlights the foundation's commitment to the development and management of the Ampleforth protocol.

Ampleforth Governance Price Analysis

As of November 24 2024 Ampleforth Governance has a marketcap of $41M. This is {{percentagefromath}} from its all time high of $180.47. In terms of its tokenomics, there's a total supply of 15M with 75% currently outstanding. Keep in mind Ampleforth Governance has a fully diluted value of $55M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.