Ampleforth Report by Jesse

Welcome to these week's edition of Wealth Mastery. Today we’ll be discussing a project that’s been in the blockchain space for a couple years now. Taking the same legacy fiat systems money mechanics and introducing it to the blockchain, is Ampleforth.

Introduction

Ampleforth protocol is working to bring a diversified and automated stablecoin to the blockchain ecosystem through a countercyclical supply policy that automatically and proportionally adjusts supply in response to demand. With Bitcoin's lack of connection to traditional assets, it brings diversity to an interdependent global economy by giving users the option to exit into an asset outside the traditional cycle of consumption and production. But since Bitcoin, thousands of new cryptocurrencies have failed to add any diversity to the ecosystem because they are either connected to traditional assets or their price movements follow Bitcoin too closely. To address this shortcoming, Ampleforth has created the ability to fairly and automatically adjust its supply in response to demand, without any need for any intermediaries. Ampleforth was designed to be the simplest direct solution to the supply inelasticity problem that limits assets like gold and Bitcoin. With daily rebasing operations that adjust the supply universally and proportionally across every wallet’s balance. Ampleforth's non-dilutive supply changes introduce a different set of incentives for traders. Because changes in demand are expressed by the number of AMPL held, in addition to its price. As a result, profit maximizing users become compelled to devise new trading strategies to counteract Ampleforth protocol consistently reducing it’s volatility over time. This applies a countercyclical pressure that was not present in current generation digital assets until developed by Ampleforth.

How it works is that Ampleforth propagates price information into supply by reacting to