Every day since June 2019, traders across the entire globe have been looking at this dashboard during a specific hour;
Well, Ampleforth is something special in the cryptocurrency industry and is considered a one-of-a-kind asset. It is a pioneer of what is known as a Multi-Variable Asset (MVA) class in which both the price and the supply can move freely.
Every day, traders flock to the Ampleforth dashboard in anticipation of the next rebase for $AMPL. This is a situation in which the total supply of $AMPL is adjusted according to where the coin sits in relation to its target price.
This supply adjustment provides a daily reason for traders and investors to come and pay attention to the elastic supply cryptocurrency. No other coin on the market has this sort of daily magnetism. It creates a scenario in which Ampleforth pretty much lives rent-free inside the minds of cryptocurrency fans across the industry, and they tune in every day to see what will happen next.
They come to get information on which direction the supply will adjust on that day. Will they receive more $AMPL? Will they end up losing some $AMPL from their wallet? Or will it be a day where the supply just remains the same? This happens every single day at 02:00 UTC.
It doesn’t just attract $AMPL holders. Traders that don’t even own $AMPL and arbitragers come to the party also. They’re consistently looking for opportunities that take time to dig up. However, with $AMPL, they know that something is bound to happen every day at 02:00 UTC, and they’re always present to take any opportunity that might arise.
AMPL Rewards Those Who Invest Time
As mentioned, there is no other asset out there like $AMPL — that includes cryptocurrency and the legacy markets. It is totally one-of-a-kind.
As it is a pioneer, not everybody understands what is going on. For that reason, it is hard to explain as there is nothing to compare it to. Think back to 2009 when Satoshi himself was writing his whitepaper, and he had issues explaining what a blockchain was because there was nothing even remotely similar at the time. As a result, most people just brushed off Bitcoin back then, and lots of people are doing the same thing with Ampleforth today.
However, it is essential to understand that $AMPL is a cryptocurrency that rewards those who invest their time — the same way that Bitcoin proved this to early adopters.
You see, regardless of what price you buy your $AMPL, you’re pretty much just buying a percentage of the overall protocol itself. This is because the daily rebase (supply adjustment) happens equally to everybody across all wallets. It doesn’t matter how many $AMPL tokens you have — a 1% rebase will yield a 1% increase/decrease in the number of tokens that sit inside your wallet.
For this reason, you can either try to trade $AMPL accordingly to the daily rebases, or you can just invest and sit-and-wait through the negative rebases until the supply expansion cycles kick in.
So far, there have been a total of around two solid expansion cycles — with the 3rd cycle primed and ready to kick-off;
Each time there is an expansion cycle, the total number of $AMPL inside your wallet increases accordingly.
Sure, there might be some short-term pain when the market gives negative rebases — but these are often short-lived.
In fact, the protocol is pretty much designed so that the magnitude of the price movements decrease consistently over the long period until it settles at its target price, which is the 2019-CPI US Dollar;
Mechanics of $AMPL Rebases
- The daily rebase occurs every day at 02:00 UTC.
- The target price is the 2019 CPI-adjusted US Dollar value.
- The rebase occurs equally across all $AMPL wallets. That includes both centralized exchanges (CEX) and decentralized exchanges (DEX).
- If the price of the Oracle on the dashboard is above $1.06 at 02:00 UTC, there is a positive rebase. Here, additional $AMPL tokens are added to everybody’s wallet.
- If the price of the Oracle on the dashboard is beneath $0.96 at 02:00 UTC, there is a negative rebase. Here, $AMPL tokens are removed from everybody’s wallet.
- If the price is between $0.96 and $1.06, there is no rebase that day.