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Edited by Kamal531 at 21-12-2023 03:11 PM
Ampleforth (AMPL) is a decentralized stablecoin project on Ethereum and one of the earliest projects to implement the Rebase mechanism. The circulating supply of AMPL tokens is adjusted every 24 hours, which is referred to as a Rebase, with the aim of maintaining the price at $1.
Similar to how currency issuance can dilute asset prices, when the price of AMPL exceeds $1, the circulating supply increases during the Rebase period, thereby reducing the value of each AMPL token. Conversely, if the price of AMPL falls below $1, the supply decreases during the Rebase period, increasing the value of each token.
The results of the Rebase are propagated to all Ampleforth wallets, and their wallet balances are adjusted proportionally.
It's important to note that AMPL holders own a "fixed proportion of the total circulating supply of AMPL" rather than a fixed quantity of AMPL. Therefore, regardless of the Rebase, AMPL holders retain the same proportion of token supply. From the holder's perspective, the quantity of AMPL in their wallet changes every 24 hours, but due to the Rebase mechanism, the total value of their AMPL wallet remains unchanged. |
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Post time 18-9-2023 13:32:17