As we have all seen on this site Ampleforth has been distributing their brand new governance token FORTH to all of those who have interacted with AMPL. Since it is a tipping token on this site many of us, if not all, have received some of it. With the distribution though there has been one thing in particular that has upset individuals on Publish0x has been how you had to 1. withdraw your AMPL and 2. had to withdraw it to a wallet where you had the key (you could not withdraw to KuCoin for example). Due to not knowing if behind-the-scenes discussions went on or not about FORTH distribution people did get left out. If you did get left out well you can still get some via Coinbase who has it on their EARN program!
What is FORTH:
The quick and easy way to describe what FORTH is actually comes from the development team at Ampleforth itself. FORTH is the governance token for the Ampleforth ecosystem and the development team directly compares it to Compound Finances COMP token. Ampleforth has a goal to be decentralized and the development team believes that the best form of governance is none at all and in order to reach this goal they are beginning the set steps, decentralization.
While currently the FORTH token does not have too much of a function in the future it will surve a huge purpose. It will be used for both binding on-chain voting and also off-chain signaling. You will also have the ability to both use the tokens to vote on respective proposals but also delegate FORTH to representatives. These representatives will be able to vote on your behalf and utilize the tokens to help move the project forward.
When idea are presented to the comppunity inorder to be inacted a sequence of steps will need to be completed each needing more and more community involvement and follow the same flow: Discussion, Proposal, Targeted Discussion, Onchain Signaling, Technical Development, Binding Vote/Deployment.
Discussions can take place in a variety of places but most will be done in the goverence section of the Ampleforth Discord channel. From here ideas that garner enough support can be formailzed into either an AIP (Ampleforth Improvement Proposal) or ACCP (Configurational Change Proposal) moving to the second step of a Proposal.
If it continues to progress it will then enter the Targeted Discussion phase where a dedicated GitHub will be created and out-come based discussions take place. This is done to try and formalize and fix any outstanding issues with the proposal. An offchain consensus is also reached and formalized. However if the Offchain Consensus is not reached how FORTH holders feel about the proposal can be generated by a non-binding off-chain vote. This give whomever is working on the proposal feedback into how likely it is that there proposal could pass.
If the non-binding vote looks promising then Technical Development would be initiated to bwrite the code, launch on testnet and audit for security so that the upgrade is complete. With the proposal ready to go then a Binding Vote/Deployment will be held and if the vote passes then deployment will occur on the mainnet. This feature has currently not been completed yet as it is still in a multisig contract but is in the process of being changed into voting and deployment via FORTH holders.
FORTH Token Breakdown:
Like I have stated earlier some people may have missed out on the issuance of the token and those that were able to claim tokens may be wondering how it was determined how many they got. At Genesis 15 million FORTH tokens were minted total. This initial supply was and still is ready right now it should be noted though that currently there is an annual inflation of 2% set. Of the 15 million mined 67% went to the community and 33% went to early backers of the project including the Ampleforth Foundation.
How did they decide how many were given to each AMPL user? More than 75,000 users were eligible for distribution of these genesis FORTH tokens and "points" were given out according to the amount of interaction with the chain and the one that would benefit individuals the most was holding AMPL through both positive and negative rebases. An additional point was given to those who held through a negative rebase.
Outlook and Final Comments:
Ampleforth has an extremely interesting plan in place that will be interesting to follow. If they can pull of all of the things that the development team can Ampleforth could really be a huge asset to those in countries dealing with inflation issues. FORTH is also claimable for one year before the unclaimed will be moved to the community governed DOA. The DOA already has 2.5% set aside for community programs including a public community education that's details have not yet been released.
While most people would not have a reason for having an asset that's main purpose is to keep its purchasing power the same there are real life use cases for it. As I had previously mentioned inflation could be an issue in the future due to the amount of money spent on COVID responses both here and across the world. Other uses would be just to have a stable amount of money set aside. As an investor though AMPL is not really something you invest in with the hopes of the coin taking off. If the coin increases to much in value then the supply will increase and if it goes down the supply shrinks. All in all it will be really cool if they are able to pull of this decentralization and I plan on keeping some of my FORTH just to be able to stay involved in the project moving forward.