What Are Ampleforth Automatic Supply Changes?

Ampleforth is an Ethereum-based protocol that adjusts the supply of its native token AMPL in response to market demand.  

Why Was Ampleforth Created?

The crypto market is notorious for volatility. It prevents cryptocurrencies from replacing fiat money in real-world situations. Despite its massive potential, it fails to act as a base for advanced financial services.

This is where Ampleforth comes in.

Ampleforth separates the core function of cryptocurrencies as a reliable unit of account from the extended ambition to become a store of value. AMPL price aims for the CPI adjusted 2019 USD. The number of AMPL tokens in a wallet goes up when the market is bullish and goes down when the market is bearish. While  AMPL deviates from its target when the supply is too high or low, the price per AMPL is designed to always return to its long-term target. 

AMPL tokens facilitate the denomination of stable on-chain contracts without relying on centralized custodians. Some of its use cases include decentralized lending, borrowing, derivatives trading, and stablecoin collateralization. 

Understanding Ampleforth Automatic Supply Changes

Rebases are applied to all addresses at 2 AM UTC (every day) by updating a global scalar coefficient of expansion. It doesn't demand transactions between peers. They affect supply only if the price of AMPL deviates from its target by > the deviation_threshold. The supply changes of Ampleforth protocol are proportional and non-dilutive. This essentially means that your ownership of the network will remain unchanged unless you buy or sell more AMLP.