AmpereForce is a stablecoin protocol designed to achieve price-supply equilibrium in response to deviations from the Consumer Price Index (CPI) target. It aims to reduce volatility and optimize based on the Ample protocol. According to AmpereForce's protocol, AF had conducted its first Rebase yesterday (UTC time September 23rd, 02:00) and was successful, indicating that there were no issues with AmpereForce's protocol. After this Rebase, AF's total supply increased from the initial 2.1 million to around 2.16 million, with a rise of approximately 3%. This increase also resulted in a corresponding 3% increase in the AF wallet balance for holders. According to AmpereForce's protocol, this rise represents a 30% increase in AF's price and the overall cryptocurrency index in the last 24 hours. Currently, AF's price is stable between 1.2-1.3 USDT, above the baseline of 1 USDT.
Elastic Mechanism: Unlike Ampl's elastic supply mechanism, AF not only uses its own price as the Rebase indicator but also considers the cryptocurrency index. Both indicators have an initial weightage of 50%, which prevents manipulation by the project team. For example, if AF's initial price is 1 USDT and it increases to 1.5 USDT by 50%, but the cryptocurrency index decreases by 50%, the deviation from the CPI index will be 0 due to the equal weightage. Hence, no Rebase will occur, and AF holdings will not change. Conversely, if AF's price decreases to 0.8 USDT by 20%, but the cryptocurrency index increases by 50%, the deviation from the CPI index will be 15%. In this case, AF holdings for holders will increase. To moderate the drastic changes in inflation and deflation, AF protocol also sets a parameter 'K' to suppress the supply changes, and the current value of 'K' is 10.
The initial weightage of both indicators is 50%, and holders can change the weightage of both indicators through voting. This demonstrates AmpereForce's completely community-driven management.
Annualized Returns: Through the Rebase mechanism, if AF's deviation from the CPI index consistently remains above 1, its annualized returns will inevitably be high due to the compounding mechanism. However, if AF's deviation from the CPI index falls below 1, it may enter a death spiral. Nevertheless, as AF's price weightage is only half of the overall calculation, the probability of entering a death spiral is relatively low compared to AMPL.
This is just a prediction, and the future development of AF will depend on the collective efforts of the community. However, AF has significant advantages compared to AMPL, as shown in the comparison chart.
More importantly, AF does not have any whale-like presence, and there will be no massive selling behavior by whales, which is an advantage for AF's stable development.
In the initial stages with limited circulation, AF's price will inevitably be relatively stable. Through AF's Rebase mechanism, holders' AF quantity will increase daily. This leveraged mechanism will bring substantial profits to early participants. Therefore, AF is a compounding game where participating early leads to higher returns.
