What is Ampleforth Governance Token (FORTH)?

Deep Dive

1. Purpose & Governance

FORTH governs the Ampleforth Protocol, a decentralized autonomous organization (DAO) managing AMPL’s elastic supply mechanics. Unlike traditional stablecoins, AMPL’s supply expands or contracts daily (rebasing) to target price equilibrium, while FORTH holders vote on critical parameters like rebase rules, collateral ratios, and ecosystem expansions (Ampleforth). This separation of governance (FORTH) and monetary policy (AMPL) ensures decentralized control over a unique financial primitive.

2. Tokenomics & Supply Mechanics

FORTH has a fixed supply of 15 million tokens, with no inflation or staking rewards. This scarcity prevents dilution, aligning governance power with long-term ecosystem health. 80% of tokens were distributed via a 2021 airdrop to early AMPL users, incentivizing community participation. The remaining 20% were allocated to the treasury for future development grants.

3. Ecosystem Synergy with AMPL and SPOT

AMPL’s daily rebasing feeds into a broader ecosystem:
- SPOT: A low-volatility asset derived from AMPL via the Rotation Vault, appealing to stability seekers.
- stAMPL: A high-volatility tranche that amplifies exposure to AMPL’s rebases, rewarding risk-tolerant users.
FORTH governs these mechanisms, including the dynamic funding rate balancing SPOT/stAMPL incentives (Ampleforth).

Conclusion

FORTH anchors a decentralized monetary experiment, blending governance rigor with AMPL’s elastic economics. Its fixed supply and veto-resistant design prioritize protocol resilience. As DeFi evolves, can FORTH’s governance model adapt to balance innovation with AMPL’s stability goals?