Understand the first IEO project Ampleforth of B Network in one article
Produced by Odaily
Author | Wang Ye
Editor | Lu Xiaoming
Author | Wang Ye
Editor | Lu Xiaoming
Recently, digital currency exchange Bitfinex and its trading platform Ethfinex announced the launch of a new IEO trading platform Tokinex. On the evening of May 23, BitFinex announced that Ampleforth (token name: AMPL) will be the first project listed on Tokinex. According to the press releases previously issued by Bitfinex and Ethfinex, the specific launch time will be 1 am on June 14, Beijing time. :00.
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Ampleforth was originally called Fragments, and its vision is to become an "artificial commodity currency"
Ampleforth was originally named Fragments. Fragments is a stable currency based on algorithmic reserves and currency supply strategies, but the Fragments team believes that their project is a low-volatility cryptocurrency rather than a stable currency. Later, the Fragments team changed their project name to for "Ampleforth".
The origin of the name is introduced on the official website of Ampleforth. "Ampleforth" is the name of a key character in the novel "1984", which is a novel written by the British left-wing writer George Orwell in the late 1940s. In fiction, Ampleforth excels at revising poetic rhymes. Because he respected poetry and language, he was imprisoned by the Ministry of Love for not changing the last word "God" in a line of Kipling's anthology to rhyme with "rod", but he did not make this decision out of a sense of personal justice, but Out of a simple love of language and respect for truth. Based on this, the team named the project Ampleforth, also to express their respect and love for truth.
Before officially introducing the operating mechanism of the Ampleforth project, Odaily will take you to understand the difference between Commodity Money, Fiat Money and Synthetic Commodity Money.
Commodity Money refers to currencies backed by physical objects, such as gold and silver, and currencies under the gold standard, such as the U.S. dollar under the Bretton Woods system. Commodity money is another type of money other than legal tender, and the currency itself has its intrinsic fundamental value beyond the guarantee of the government.
Synthetic Commodity Money is a concept proposed by George Selgin, a monetary economist and a member of the liberal Cato Institute (Cato Institute), in his paper "Synthetic Commodity Money" published in 2014. A new type of "currency" that combines the characteristics of legal tender and commodity currency. This currency is represented by Bitcoin, which is decentralized and not controlled by the central bank. Man-made commodity money is a bit like fiat money, without the cost disadvantage of setting a commodity currency standard, yet it is absolutely scarce, immune to supply surges caused by the discovery of raw materials or technological innovation, and like real commodity money, the supply of man-made commodity money Quantities are not affected by political motives.
Ampleforth is a digital asset decentralized protocol for smart commodity currencies. The creators of the agreement aimed to create a fair, politically independent, and decentralized asset. The founding team of the project found that commodity currencies such as gold and silver naturally have decentralized attributes. However, gold and silver cannot efficiently meet changes in people's payment needs, so they cannot become substitutes for existing legal tenders. Compared with the legal tenders issued by the central bank, gold and silver have high production costs and low supply elasticity, so they are of great importance to the macro economy. The economy doesn't run in a friendly way.
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In order to solve this shortcoming, the founding team designed Ampleforth to spread price information to the supply. Under this agreement, Amplefort's native token AMPL can avoid the problem of deflation without the need for centralized authority regulation.
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How Ampleforth works
Ampleforth employs an algorithmic money supply model to achieve the balance needed to reduce volatility, with a focus on token holders. Token holders act as market makers, buying more tokens when its price drops below $1 and selling it when it exceeds $1. When market makers are unable to cover the price difference, an algorithmic buffer kicks in, automatically buying and selling reserve assets, bringing Ampleforth closer to the value of $1.
By automatically buying and selling tokens when needed, Ampleforth's supply could theoretically expand and shrink to meet goals. These automatic conversions remove some autonomy from token holders, who lose or gain a portion of their funds when Ampleforth is converted into bonds and distributed pro rata to them to reduce Ampleforth supply. When the price gets too low, Ampleforth sells reserves and distributes more tokens to wallet holders, increasing the total supply of shards.
Like Basis, Ampleforth follows a first-in, first-out model, rewarding token holders for swapping Ampleforth for bonds when the supply needs to shrink, and accepting newly issued Ampleforth in exchange. Ampleforth manages stability autonomously, offering the advantage of rapid adaptability, but also the ability to remove decisions from token holders when prices move too far away from the market maker layer. This makes Ampleforth's chances of success depend on people holding its tokens for the long term.
Inner layer (market makers): Here, market makers benefit from simple arbitrage buying when the price rate is less than 1, and selling when the price rate is greater than 1.
Outer layer (supply policy): When volatility exceeds the capacity of market makers, supply expansion and contraction occur automatically in the outer layer. The Ampleforth Reserve is an algorithmic buffer that sits within this outer layer, capitalizing beneath expansion and programmatically buying and removing tokens in exchange for contracting bonds.
Ampleforth Reserve Buffer: The Ampleforth Reserve Buffer is an ETH reserve designed to participate in shrinking programmatically. As supply increases with demand, a portion of tokens are allocated to reserves and automatically sold to ETH to buffer capital. Reserves programmatically bid on bonds to remove supply when supply demand falls with demand.
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Alternative Range - USD Ampleforth can be used to meet the same needs that Tether does now, with an auditable online reserve and supply policy.
Hedging against other cryptocurrencies - When the price of a floating currency falls, traders fall back into a stable currency. In our case, this demand pressure triggers an increase in supply that is maximally distributed to token holders as a by-product of stabilization.
Stability for developers - Developers creating utility tokens are eager to take advantage of the inherent network effects of floating price tokens. But in addition to using tokens to represent the value of the network, developers also use tokens to denote value (ie: 1GB of storage tokens). The Ampleforth platform will be offered as a service, making it easy for developers to develop functional utility tokens that preserve network effects.
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Ampleforth team introduction
Evan Kuo (CEO/Engineer/Product)
Evan is an entrepreneur and math enthusiast. He was the CEO of Pythagoras Pizza and has extensive experience developing predictive auction products and working with venture capital.
Richy Qiao (Business/Operations)
Richy has worked as a consultant in New York for 4 years, and has been responsible for more than a dozen major client projects such as Morgan Stanley, DTCC and Visa. Richy is currently also a venture partner of FBG Capital.
Simon Manka (User Growth)
Simon previously worked at IOST Token, responsible for IOST's user growth business, and helped IOST enter the top 50 cryptocurrencies by market capitalization.
Brandon Iles (Engineer/Architect)
Brandon worked for 5 years on Google's search ranking and machine intelligence team, and later on Uber's ranking and related team.
Ahmed Naguib Aly (Engineer/Backend)
Formerly at Google, Ahmed is a software engineer who has worked in the search indexing and search ranking groups for over five years.
Aditya previously worked at Uber, where he started developing an end-to-end surge pricing system and later launched a place search project with autocomplete, destination prediction, and current location prediction.
Previously employed at USC, Nithin is a research engineer in the IRDS/IMSC laboratory.
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FBG, Pantera and Huobi all participated in the investment
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Ampleforth's investment institutions include: True Ventures, Pantera Capital, Founder Collective, Slow Ventures, Brian Armstrong, FBG Capital, Huobi Capital, Spartan Group, Nima Capital and Skunk Capital.
Pantera Capital is an investment company focusing on enterprises, tokens and projects related to blockchain technology, digital currency and encrypted assets. It has invested in star projects such as Basis, Circle, Harbor and DMarket.
