With the release of FORTH on many major exchanges, interest in the Amplforth stablecoin AMPL has grown considerably. AMPL is a new take on cryptocurrency stablecoins. It aims to remain a steady, decentralized, non-dilutable asset in which to store funds. AMPL is the first of its coin to utilize a rebasing method. This is achieved through the automatic release of new coins to existing holders during price fluctuations. The holder of AMPL is either given more or less coins demanding on price. Through this, the holder never has his/her share of the overall market reduced.
By utilizing these different methodologies of token governance, AMPL is able to apply a solution to the diversification problem in crypto. AMPL has unique incentives to the market which help it decouple from a lock on Bitcoin's price pattern, helping to add diversity to the cryptospace while still operating like Bitcoin. By being non-dilutive, the coin is also immune to any massive demand shocks or other unforeseen complications.
AMPL operates like Bitcoin because it is algorithmic and uncollateralized. The difference comes from AMPL's ability to be used to denominate stable contracts.
AMPL vs Existing Stablecoins
AMPL shares an advantage over other existing stablecoins such as DAI because it avoids the need to rely on either traditional banks or lenders of last resort. DAI utilizing a lenders of last resort approach to be sustainable. This means the coin cannot be sustained through the free market system. It is supported by periodic bailouts to operate effectively. AMPL solves this issue by not relying on centralized collateral lenders. It is the most decentralized stablecoin to come into the cryptospace thus far.
The combination of AMPL + FORTH has a substantial amount of room for new growth moving forward. Amplforth has the ability to be a class rival to the Maker / DAI combination as far as governance + stablecoins go.
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