Ampleforth is a DeFi protocol on Ethereum that introduces the concept of stablecoin with algorithmically operated supply. The project was created in 2018 by the entrepreneur duo Evan Kuo and Brandon Iles with the aim to maintain the purchasing power of the USD at the year 2019. Due to its unique nature, Ampleforth has gained the interests of Coinbase and Pantera.
The said stablecoin is called AMPL, and its supply is adjusted at 2AM UTC every day through a process named “rebasing”. In this process, not only the overall supply of AMPL changes, but also the amount of AMPL one has in their own wallet changes. One caveat worth mentioning is that even though the specific amount of AMPL may change in one’s personal wallet, the percentage they own out of the current total supply remains the same. The pros of AMPL is that it is decentralized, it can avoid price volatility in a flexible way, and the algorithmically controlled supply makes it easy to maintain the peg. The cons of AMPL include being difficult to be listed on exchanges, especially centralized exchanges.
Governance of the Ampleforth protocol is administered by the FORTH token.
At the moment of writing, the total supply of AMPL is 395.5 million and the circulating supply is 46.0 million, taking up about 12% of the total supply.
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