- The original rebasing project Ampleforth is removing upgradeability from the protocol’s token smart contract.
- The project has taken the next step on the path to placing the protocol into the hands of its community of more than 30,000 active AMPL wallets.
- Ampleforth is officially censorship-resistant and cannot be changed without the community’s approval.
Share this article
Ampleforth has lifted upgradeability from the protocol’s token contract, taking another step towards full decentralization. The protocol is now censorship-resistant and immune to outside influence.
But this wasn’t always the case.
Ampleforth’s Winding Road
Launched in 2019, Ampleforth was a unique crypto project.
It introduced rebasing, elastic supply and has inspired the recent wave of algorithmic stablecoins. These topics were still nascent and oftentimes misunderstood at that time.
The protocol’s native token, AMPL, is like a living organism that grows and shrinks in value according to supply and demand. It aims to maintain a $1 peg, but it does this much differently than Tether’s USDT or Maker’s DAI.
It also shouldn’t be confused with stablecoins; AMPL is extremely volatile. At times, the token has risen as high as $4 before a brutal crash.
If there is a circulating supply of 100,000 AMPL and the price increases from $1 to $2 due to buyer demand, the network will automatically redistribute an additional 100,000 AMPL and help return the peg to $1.
What’s more, these additional tokens would be distributed to AMPL holders proportionate to their current holdings. The inverse is true if the price falls below the $1 peg. Instead, the protocol burns a proportionate amount of AMPL tokens held in a wallet.
This is a simple unpacking of what is known as rebasing. It occurs once every 24 hours. So far, AMPL has successfully executed more than 600…