The Ampleforth protocol propagates price-information into supply, much like how thermal expansion propagates nearby kinetic energy into a material’s volume in the natural world.
The protocol achieves this by seeking a price-supply equilibrium, and will always enter a state of unrest until it finds one. As a result, the system alternates between two modes:
- Dynamic: In which supply is changing
- Equilibrium: In which supply remains static
Continue to learn about the desired output of price-supply equilibrium.