If you know me (form my previous posts), you know that I'm always in research of promising crypto projects. Once I find one, nothing stops me from keeping diving in it for discovering all its features and aspects.
Today, I'm back with another in-depth review on a crypto project which I think has the full potential to reimagine the entire way we think about money and even economy itself. It might be a bit long article, but believe me, it's interesting and worth 10 minutes of your time. And to be more simplistic, I've divided it into a Q&A list...

So, without any further ado. let's dive in...

Contents:
1- What is Ampleforth?
2- What problems Ampleforth is going to solve?
3- The exact mechanics behind Ampleforth...
4- Has Ampleforth performed as intended?
5- How can I make gains from using AMPL protocol?
6- How can I provide liquidity and earn AMPL tokens ?
7- Where can I buy AMPL tokens?
8- Where can I store AMPL tokens?
9- Conclusion

1- Whats is Ampleforth?

It's an ERC-20 token that's built on top of Ethereum and it's a first of its kind cryptocurrency where you have a perfect supply elasticity.
It seeks the same goal of many other cryptocurrencies and that is to create a simple global financial system with a special focus on banking the unbanked. However, it comes with a different economic model that can radically alter the way we think about money...

2- What problems Ampleforth is going to solve?

Let me start with a bit of background...
If we look at Ampleforth's goal, you will see that it's the same of Bitcoin's or Litecoin's goals and that is to be a new medium of exchange and a new form of money, so what makes Ampleforth different?
Well, I think many will agree with me on this particular point: Bitcoin is more suitable for being a store of value than it is as a medium for day-to-day exchanges. And allow me to explain why...

Besides its poor scalability problem (which I really hope to be solved in the future), Bitcoin has another challenge that is hampering its use as a medium of exchange and that is its volatility...
Bitcoin price is something based on two factors: supply & demand. And given that the supply is fixed, then demand (which is continuously changing)is the only controller of the price.
As you know, merchants will not be able to accept "money" that can jump to double in value or drop in half within days.
This volatility problem cannot be solved because it comes down to its fixed supply which is the most fundamental feature of Bitcoin. This means that any change in demand will be expressed by a change in the price.
Many eyes have popped out now, right?
I mean we always hear talks like:
"Bitcoin's fixed supply is the biggest feature"
"Bitcoin's fixed supply is what makes it great"
"Bitcoin's fixed supply is why bitcoin is superior to Inflationary fiat"
"Inflation is what makes fiat fails"
"Inflation devalues people's savings"
"Fiat money is evil"

Yes, all of those talks are true and I'm no different. However, this fixed supply makes bitcoin serves as more of a store of value than as a medium of exchange.
On the other hand, I also believe that fiat money is evil. However, let me counter that inflation is not what makes fiat money evil, but it is who can cause said inflation.
In our traditional financial systems, governments or central banks are the only ones authorized to issue money. They cause inflation by printing enormous amounts of money without following any rules. If the FED wants to print a trillion dollars tomorrow, they can easily do it.
This broken economic model reduces the value of money and makes governments the only beneficiaries of this inflation at the expense of regular people like you and me.
It's a completely unjust financial system...
And here where Ampleforth steps in...
Ampleforth is a first of its kind cryptocurrency that is designed with a completely "elastic supply".
That means the protocol of Ampleforth is designed to adjust the supply in order to meet the demand. This is intended to eliminate the volatility problem and keep the price stable.

Back with Bitcoin, If the demand increases by a certain percentage, then the price will increase by the same percentage and vice versa if the demand decreases.

With Ampleforth, there is no reason for the price to act as an equalizing force because any increase in demand will be met by an increase in supply.
However (and here is the big thing) it is Non-Dilutive meaning that any increase/decrease in supply will be done pro-rata to ALL wallets on the network. This means that when you buy AMPL tokens, you essentially buy a percentage of the network and your percentage will be kept wherever the supply goes up/down. It's the same philosophy that underlies Bitcoin: YOUR SHARE IS YOUR SHARE
At the same time, this economic model ensures relative stability for price and enables it to decouple from Bitcoin price moves so that AMPL token can be used as an eligible medium of exchange...

 My Original design :))

3- The exact mechanics behind Ampleforth...

Well, you may have noticed that Ampleforth functions much like a stablecoin but it's NOT a stablecoin. It's NOT one of those fiat-backed cryptocurrencies (like USDT, USDC..etc) but it's an Ethereum-based token that targets at a specific price ( $ 1 ) through the use of smart contract technology.
Every 24 hours the supply required to stabilize price is calculated ( or as they called Rebasement), then it's implemented to all wallets on the network. So, if you have some AMPL tokens and the price goes up ( say $ 1.10), the supply will rise and then you'll receive additional tokens and vice versa if the price goes down ( say $ 0.90), the supply will shrink, and then you will lose some tokens.
If you hold 1000 AMPL tokens today, you might wake up tomorrow and find them 1050 if the demand increases or you might find them 950 of the demand decreases. This is a daily "Rebase" process that is done to stabilize price at a specific level. It's all controlled programmatically without any central entity.
And given it is a decentralized and open-source protocol, you can easily check all the supply adjustments yourself. All you have to do is to go to their official site and see when the next "rebasement" will be.

Taken from https://www.ampleforth.org/dashboard/

4- Has Ampleforth performed as intended?

Ampleforth is no doubt a great crypto project that comes with revolutionary technology. However, I strongly believe in the saying " it is not about technology, it is about the application of technology".
After all, what really matters is action not words, right?
This begs the question of whether Ampleforth protocol is really successfully working as intended?
Well, the simple answer is: YES IT IS
According to CoinMarketCap data, AMPL token has managed to achieve a reasonable amount of stability since its inception. As you can see in the two snapshots below, the protocol has been able to bring the price back to its line whenever it went up or down.
Frankly, I'm quite amazed at this performance given the huge fluctuation of demand (which was supposed to lead to price fluctuations).
Another thing worth mentioning is the skyrocketing market cap of AMPL token which naturally means an increasing demand and means in turn that holders are enjoying sweet increases to their portfolios ;)

Taken from https://coinmarketcap.com/currencies/ampleforth/

5- How can I make gains from using AMPL protocol?

You might be wondering right now: How can I get some benefits from getting involved in such a project?
Well, there're actually two ways:

• The first one is to stock up and hold some AMPL tokens in your wallet. Assuming that the demand for AMPL will be keeping increasing in the coming months as it is now, then you will earn even more tokens to your portfolio. This means that even if the price remained at the $1 level, you would have a larger amount.
  Indeed, this is actually what really happened to all early investors in AMPL after the inflation had rewarded them in more AMPl.
  So, unlike holding other stabecoins (USDT, USDC, DAI..etc), increases in demand will lead to an increase in your wallet value.
• The second way is to participate in providing liquidity to UniSwap pools so that you can earn additional AMPL tokens. The goal of providing liquidity is to help to facilitate the decentralized exchange between AMPL token and Etheruem within AMPL/ETH pool on Uniswap. As a reward for doing so, you'll get a share of the trading fees and some additional AMPL tokens too. The more liquidity you provide, and for longer, the greater share of the AMPL pool you receive.
  This is done through The "Geyser" which is a smart faucet designed by Ampleforth team in order to incentivize those who are providing liquidity to AMPL pool on UniSawp. Geyser allows you to monitor your AMPL rewards and see exactly how much AMPL you'll be able to earn based on the amount of UNI-v2 tokens in your wallet.
  If you want to know more about the Geyser and how it works, here is a link with some more information:
  https://www.ampltalk.org/app/forum/ampl-geyser-19/topic/about-the-geyser-21/

6- How can I provide liquidity and earn AMPL tokens ?

If you want to participate in that liquidity pool, it's so easy:
1 Go to Uniswap V2 and connect your wallet
2 Hop on over to the AMPL/ETH pool on UniSwap V2
3 Deposit an equal proportion of the dollar value of both ETH and AMPL tokens into the pool. Once you start providing liquidity, you're eligible to get a share of trading fees and UNI-v2 tokens.

4- Head over to ampleforth.org/geyser

5- Click the "MAX" button, then click "Deposit" in order to stake your UNI-v2 tokens In the "Geyser"

6- That is it. You are eligible to earn AMPL tokens :))

7- Where can I buy AMPL tokens?

AMPL token is a well-spread cryptocurrency on both centralized and decentralized exchanges with very decent liquidity.
Here are some of those exchanges:
Decentralized:
Uniswap (v2): AMPL/ETH
Uniswap (v1): AMPL/ETH
Sushiswap: AMPL/ETH
Balancer: AMPL/USDT
1inch: AMPL/ETH
Bancor Network: AMPL/BNT
Paraswap: AMPL/ETH

Centralized:
KuCoin: AMPL/BTC; AMPL/ETH; AMPL/USDT
Bitfinex: AMP/BTC; AMP/USD; AMP/UST
MXC: AMPL/ETH; AMPL/USDT
Hotbit: AMPL/BTC; AMPL/ETH; AMPL/USDT
FTX: AMPL/USDT; AMPL/USD

8- Where can I store AMPL tokens?

AMPL is an ERC-20 token built on top of Ethereum blockchain, so you have a wide range of ERC-20 compatible wallets that can be used
MetaMask (Web Wallet)
MyEtherWallet (MEW) (web)
MyCrypto (web wallet)
Atomic wallet (Desktop Wallet)
Trezor (Hardware Wallet)
Ledger Nano S (Hardware Wallet)

9- Conclusion:

Honestly, I'm quite impressed by the unique vision of Ampleforth. A vision that is trying to eliminate the monopoly of central banks on the issuance of money the put this privilege into a smart contract. It provides a fair protocol that has the potential to avoid Bitcoin's volatility problem and Fiat's unjust inflation. the focus of Ampleforth is keeping on a user’s spending power stable and that is in itself a revolutionary goal.  It's the first project I know of that has managed to decouple from Bitcoin price moves through the use of smart contract technology...
I'll definitely keep a close eye on it...

What do you guys think about Ampleforth?
Do you think it is a project worth investing in?
And finally, I know that I'm a bad teacher, so if you have any question, please don't hesitate to drop it on the comment section below and I'll be happy to answer...

PS, this article is my entry to the contest announced by Igor Tomić ...[#ELI5AMPL Writing Contest and Twitter Giveaway - $1,000 in AMPL Prizes + Extra Prizes]

Thank you for reading :))