pull down to refresh
Current Value of 2019 USD = approx 1.17 USD - U can see this in the AMPL Dashboard in the website.
Now if AMPLE is trading at less than 5% of the 1.17 USD ( Less than ~ 1.11 ) then that means the total supply of ample has to be decreased globally to so that the price comes up to reach 1.17
So rebasing happens and the total supply goes down. This is called negative rebasing
As the total global supply of AMPL goes down the total supply of AMPL in ur wallet also goes down.
Now this pushes the demand higher and the price might go higher the next day. If the demand goes higher and higher there may be people buying ample for 1.3 USD or 1.5 USD if demand keep staying there. Now every day the global supply is increase based on the increasing demand to bring down the price to 1.17 USD which is the target. Sometimes the price keep staying above 1.17 for a long while indicating higher demand and so the supply globally and in ur wallet keeps on growing till the total supply increase to a level that the price comes down to tend to 1.17 USD
So this effectively negates the cantillon effect when Fiat currency issue happens. Similar to Fiat currency AMPL also keeps issuing more and more supply. but the increased supply comes into the account distributed across all the previous holders.
Price significantly dropped to an all time low last june and recovered a bit since then.
Price in June 2023 was around $15000. Bitcoin all time low was below $0.000001. Sigh.
I am talking ampleforth @harrr
Ouch, thanks for pointing that out :-D
Trying to look at ampleforth price line since inception in 2021. Price significantly dropped to an all time low last june and recovered a bit since then.
So let me ask you a question ( a real one since i am interested in understading the concept )
If Ampl is an algorythmic stablecoin, that aims at targeting 2019 USD value, knowing the USD value decreased since 2019, ampl price being traded on exchanges follows the simple rules of supply and demand because not backed or pegged to usd. Since ampl prices are going down, from my understanding, ampl algorythm corrects that decorrelated value from 2019 usd value by increasing the amount of ampl you got in your wallet. Is it correct?
That s where i am unsure if my undeestanding is correct because i have a hard time figuring my wallet not having the same amount of ampl everytime i would check without making any transaction… so i mist be missing something
Thank you.