THE MOST BASIC AMPLE-GUID FOR GRANDMA'S.(INTRODUCING THE BASIC CONCEPT OF CRYPTOCURRENCY TO GRANNIES)

Over the years the word Money (aka currency, a means of exchange) has always been changing, starting from the Trade by barter system down to the use of fiat (paper money),most of our grannies have been alife to witness this tremendous change in Money,

This changing concept of money has witnessed a new aspect following the invention of computers, this lead to the creation of online forms of Money (or rather computer forms of money,that works with computer language aka Blockchains).

Blockchain simply means a type of database that is stored in block form (database is a collection of information that is stored electronically on a computer system).

The first of it's kind being Bitcoin (2009), after which many other forms of this cryptocurrency emerged (eg, Ampforth,Dash,ethereum ,lite coin,zchash,BAT,monero etc).

The major Basic concept of this computer Money (aka Crypto currency) has always been to Decentralize money [ this means no single individual,or organization or firm can single handedly own or control money (i.e nothing like central banks as we can see with paper money (fiat currency)].

     BASIC HISTORY/MEANING AND CONCEPT OF AMPLEFORTH.

Ampleforth is another form of this computer money ( aka cryptocurrency) just like bitcoin,ethereum and co.

Ampleforth was created in 2017 by co founders Evan Kuo (a graduate of University of California, Berkeley) and Brandon Illes (a former senior software engineer at Uber), Ampleforth was Launched in early June of 2019.

Ampleforth (AMPL) is a Decentralized finance (Defi) protocol that was built from the ethereum blockchain (database).
The basic concept of Ampleforth has always been to create a link between cryptocurrency (computer currency) and banks fiat currency/paper money  ( ie functions as a Base money),this means that ampleforth aims at stabilizing the user’s spending power. That is why ampleforth is somewhat referred to as Synthetic Commodity Money.

HOW DOES AMPLEFORTH SERVE AS A BASE MONEY???

Ampleforth makes use of a system called "REBASING MECHANISM"or "ELASTIC MECHANISM", Unlike most other cryptocurrencies ampleforth overall market capital value makes use of both the supply based economic and price based economics ( this means in simple form that the value of ampl rises and falls based on the demand/supply of Ampl and Price of Amp).

"The question here now is how does Ample archive this Rebasing/elasticity???"

Answer ; Ampleforth is is designed to target a $1 price, If the PRICE is above $1 the SUPPLY increases (called a postive rebase), and if the PRICES decrease below $1 ($ 0.90) then the SUPPLY decrease (Negative Rebase).

This Rebasing has a tremendous effect on the amount of Ampleforth owned by users.

EFFECT OF REBASING ON THE AMOUNT OF AMPLEFORTH OWNED BY USERS.

This Rebasing mechanism has both desirable and non-desirable effects,on individuals who make use of Ampleforth.

Firstly,we need to see the amount of Ampleforth owned by individuals as a mere fraction in percentage of the total Ampleforth in ciculation.

NB; This percentage % increase and decrease with Price and supply movements (either positive or negative movements).

Now let's say For example, you have 100 tokens of ample, and then the price of Ampl is above $1 after rebasing, the next day you will have a positive rebase of 105 tokens, at the same market dollar $ rate, so at $1.10 the rebase is around 1% supply increase, at $1.20 it is a 2.4% increase DAILY.
But if you have 100 tokens of Ample, and price of ample decreases below $1 (let's say $0.90) after rebasing,the next day you will have a negative rebase of 95 tokens at the same market dollar $ rate.

NB; Rebasing occurs every day at 13:00 EST time, this changes the SUPPLY amount of ALL AMPL tokens owned by users.

The effect of this rebasing is to encourage buying and selling of Ample,individual with positive rebase(profit) tend to sell their Ampleforth so as to take the profit they realized from the positive rebase, while individuals with negative rebase (loss) tend to buy more because the price is low and more ampl can be bought at a lower price and they aim at selling it off at a higher price at the later Rebasing.

                     INVESTORS

Ampleforth have a list of impressive investors that believe in the system. Coinbase CEO Brian Armstrong invested personally in Ampleforth, Ampleforth also received investments from:

FBG Capital
Huobi Capital
Nima Capital
Skunk Capital
Pantera Capital
Founder Collective
Slow Ventures
True ventures
Ampleforth advisory board also include some of these investors - they also have advisors from MIT and Facebook.

#summary Ampleforth is one of the Decentralized finance (Defi) with a great potential of serving as the Base-money between Centralised (paper money) and Decentralized (cryptocurrency). It employs Rebasing mechanism as a means of maintaining it volatility, thereby overcoming the excessive value swing witnessed by most cryptocurrencies( computer money).

•Ahanonu's publication @ Dicecrypto Articles 2020•