Today I want to take a look at the token we are earning here on Publish.0x

• Ampleforth

I am a fan of some cryptography projects but to be honest I did not know much about Ampleforth before joining publish.0x.

About time to change that, so I will dive into Ampleworth.

Ampleforth:

The first thing you will read on ampleforth.org is that it is an 'adaptive base money' 

In a nutshell Ampleforth was described as following by ico-drops:

The Ampleforth protocol receives exchange-rate information from trusted oracles, and propagates that to holders of its units (Amples) by proportionally increasing or decreasing the number of tokens each individual holds.

Tokenomics

Ampleforth raised nearly 10 million USD across 2 initial coin offerings (ICO) and 1 initial exchange offering (IEO).

The token price for an Ampleforth was 0.98$ in the last round.

Ico drops shows us a Volume of 13.3 million dollars and a market cap of 361 million $.

On the 2 year chart we can see an all time low of 23.5 cents.

Ampl hit an All Time High in June trading at 6.27 USD at that time and is now worth 1.58$.

Ampleforth explained:

 Evan Kuo is a UC Berkley (mechanical engineering and computer science) graduate and the founder of Ampleforth. He thought cryptocurrency in general needs to redesign money and banking. After receiving grants of Huobi, Coinbase and even Pantera Capital the Ampleforth Foundation was born.

Ampleforth was based on a model currency created by the world famous economist and philosopher Friedrich Hayek.

Ampleforth would see its total supply expand and contract to maintain its purchasing power. This is why it is often mistaken for a stable coin.

Expand and contract its supply, what does that actually mean than?

The whitepaper tries to explain that. I use Chris as I am the guy who earns Ampl by writing this article ;) 

Chris has 1 AMPL in her wallet worth 1$USD.

The demand for AMPL suddenly rises, and the market price for AMPL jumps to 2$USD.

The Ampleforth protocol adjusts supply, and now Chris has 2 AMPL worth 1$USD each.

What is remarkable about Ampleforth is that it is non-dilutive, meaning that Chris will still have in his wallet the same percentage of Ampleforth’s total supply when it changes.

Ampleforth is a  DeFi projects that is rebasing the supply of Ampleforth (at 1pm EST to be exact) to match demand using a smart contract.

Chainlink helped to build the Ampleforth Oracle and Ampleforth also uses Chainlink to source price data from KuCoin and Bitfinex to check if the market price per AMPL is within the 0.96-1.06$USD range.

Ampleforth adjusts to the price of a 2019 dollar. The price of each AMPL token will increase in USD value because the USD has an inflation rate that averages 2-3% a year.

So why is it trading at 1.58$ and not between 0.96 and 1.06$? 

The reason why the price of AMPL has remained so high is because the demand for the token has been outpacing the rate at which the protocol is able to adjust its supply.

This is because the protocol modifies the total supply of AMPL as if it were doing so over a 10 day period which constantly “resets” every day.

This helps the protocol slowly but surely correct its market price and bring it back within the equilibrium range. The end result will be a  higher overall supply and market cap with the same price per AMPL token as before the rise to 1.58$.

The balance of AMPL tokens in all wallets will grow or fall in accordance with the supply but the holders of the token maintain the same percentage of the total supply.

Ampleforth is still an Erc20 Token but although it is built on the Ethereums Blockchain it was designed to be able to be integrated into Eos or other currencies.

Now we will take a quick look at the distribution of the token,

Counbureau.com notes that

While it is not entirely clear whether any of the AMPL tokens in the first two ICO rounds ended up in the hands of regular individuals (and even part of the IEO was apparently reserved for institutional investors), even if we assume all ~16 million tokens ended up in the hands retail investors, that is still just a third of the total initial supply of 50 million.

It seems that only about 1/3 of the tokens were allocated to investors and the team still manages almost 2/3 of the funds.

Coinbureau.com comes to the following conclusion, 

Now combine this with the fact that Ampleforth developers are able to pause adjustments to supply and even freeze all tokens in circulation and you have a recipe for disaster. A currency that can be manipulated and has two thirds of its supply owned by its creators is not a viable candidate as a global currency.

 

Where to buy/sell Ampleforth?

This is just a small introduction to Ampleforth and as I have stated before I am not an expert on this asset. I am always willing to learn more especially because I will receive Ampleforth tokens from you guys tipping me.

Do you believe in a bright future for the Ampleforth currency?

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Just remember this is no financial advice.

Chris aka Goodsoul

Always happy for tips,likes and follows