What is Ampleforth Governance Token (FORTH)?

Deep Dive

1. Governance Mechanism

FORTH empowers holders to propose and vote on changes to the Ampleforth Protocol, including adjustments to AMPL’s rebasing mechanics (daily supply changes based on price) and ecosystem expansions like SPOT (low-volatility asset) and stAMPL (volatility amplifier). Voting rights can also be delegated, fostering participation without requiring constant engagement (Ampleforth Documentation).

2. Tokenomics & Anti-Capture Design

With a hard cap of 15 million tokens, FORTH avoids inflationary dilution, preserving governance influence. 67% of tokens were distributed via a 2021 airdrop to early AMPL users and liquidity providers, decentralizing control from inception. Its non-custodial design prevents freezing, aligning with Ampleforth’s ethos of censorship resistance.

3. Ecosystem Role

FORTH governs a multi-token system:
- AMPL: Rebasing "elastic currency" adjusting supply daily.
- SPOT: Low-volatility derivative from AMPL tranching.
- stAMPL: Volatility-focused tranche capturing AMPL rebase premiums.

Decisions on funding rates, protocol fees, and collateral ratios for these assets fall under FORTH’s purview, ensuring the ecosystem balances stability and growth.

Conclusion

FORTH anchors a self-adjusting monetary protocol, blending decentralized governance with elastic supply mechanics. Its fixed tokenomics and DAO structure aim to sustain long-term alignment between stakeholders. How might evolving DeFi demands shape FORTH’s governance priorities in balancing AMPL’s elasticity with SPOT’s stability?