The Elastic Supply Protocol
The Elastic Supply Protocol
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1. Today's money goes to central banks Today money is issued to a central authority. Banks inflate for a myriad of stressful reasons, and they get to keep or lend the new money they print. Each cycle of inflation dilutes the balance of every holder.

2. Tomorrow's money goes to the people Tomorrow's money is issued directly to the people. Ampleforth inflates only in response to demand, and distributes directly and proportionally to holders. The system takes no profits from inflation. This prevents balances from being diluted, and aligns users with the network.

Elastic Supply

The value of any sum of money held, is simply its price per unit multiplied by the quantity of units.

Value = Price * Quantity

Traditionally, people think of price as the component that fluctuates with demand, while quantity remains static.

The Ampleforth protocol inverts this, holding price static while allowing quantity to change according to demand instead. Consider the following examples:

// 1. The Bitcoin Model

Adam purchases 1 Bitcoin at $1, demand increases and he now has 1 Bitcoin worth $4000.

// 2. The Ampleforth Model

Betty purchases 1 Ample at $1, demand increases and she now has 4000 Amples each worth $1.

This difference may appear subtle, both Adam and Betty end up holding $4000 in tokens—but the second model is strictly better than the first because it preserves the unit of account function of money.


Our protocol is simple. When Amples are trading higher than the price target, the protocol inflates to coin holders proportionally; and when Amples are trading lower than the price target, the protocol deflates from coin holders proportionally. Consider the following examples:

// 1. Inflation Example

>> Adam begins with 1000 Amples.
>> Supply increases by 10%.
>> Adam now has 1100 Amples.

// 2. Deflation Example

>> Betty begins with 1000 Amples.
>> Supply decreases by 10%.
>> Betty now has 900 Amples.

By adjusting supply to coin holders directly, the Ampleforth protocol avoids the devaluing effects of inflation observed in fiat currencies, while re-engaging the supply mechanism that creates near-term price stability.


Ampleforth extends upon the progress made by fixed supply assets by introducing the unit of account function of money without compromising store of wealth properties.

1.  A Unit of Account

By maintaining a price target, Amples unlock many of the use cases that our financial infrastructure relies on today. For example:

An employer could not responsibly offer an employee a salary paying 1 BTC per month, but it could offer 4000 Amples per month.

Similarly, a country could not responsibly borrow 100,000 BTC to be paid over the course of ten years, but it could borrow 400,000,000 Amples to be paid over the course of ten years.

And finally, a merchant could not denominate the price of a widget as 1 BTC, but it could denominate it as 4000 Amples.

2.  A Store of Wealth

In addition to eliminating the negative effects of inflation, Ampleforth's supply policy naturally aligns with early adopters because even when supply changes, a given holder's percentage of the network remains fixed.

For example, if Celine purchased 1 Ample at a market cap of X and the market cap increased to 2X, she would then have 2 Amples.

Similarly, if she purchased 1 Ample at a market cap of X and the market cap decreased to 0.5X, Celine would then have 0.5 Amples.

Like Bitcoin, gold, and other floating price assets, the system implies a continuum of risk and reward except the difference is reflected in count, rather than price.

3.  An Independent Money

Early on, Amples are best thought of as a fungible investment asset that can be used for denominating contracts and settling payments. However as market adoption increses, Amples evolve to take on additional functions of money.

Like Bitcoin, with increasing saturation Amples transition from a store of wealth to a store of value. However, because Amples have included the unit of account function by design, the "end state" is an inflation free digital asset capable of fulfilling all functions of money—rather than a digital silver or digital gold.

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We believe that the best monetary system is simply the least greedy system capable of fulfilling all functions of money. The Ampleforth protocol:

  • Takes no seigniorage.
  • Applies no demurrage.
  • Adds no transaction fees.

Thanks for taking the time to check us out, we've provided a broad overview of the Ampleforth project above. If you're curious to learn more please have a look at the about page and whitepaper or feel free to reach out to us through our community channels and email.

Core engineering development is now complete and we're currently undergoing security audits.