$AMPL = Time
If time is the ultimate currency? What cryptocurrency best represents time?
Is it Bitcoin? Is it Ethereum? Or is it something else?
Let’s first look at $BTC.
Bitcoin is widely recognized as digital gold. This is the narrative that resonates most with people because it’s used as a store of value and it’s limited in supply.
Let’s look at $ETH.
$ETH is commonly recognized as money among crypto enthusiasts. It’s used to pay for NFTs, other cryptocurrencies, and costs associated with using DEXes and other dapps in the Ethereum ecosystem.
Now let’s look at $AMPL.
$AMPL is a financial primitive that uses time as its peg. In other words, $AMPL is pegged to time — the ultimate unit of account.
The Ampleforth protocol forever targets the price of $1 as determined by the 2019 Consumer Price Index. In this way, the price of $AMPL captures the value of time.
As seen in the image above, $AMPL remains frozen in time while USD stablecoins move parallel with time.
Therefore, USD stablecoins maintain a constant value of $1.00 through time regardless of inflation. $AMPL, on the other hand, holds true to the 2019 US Dollar which is CPI-adjusted to account for inflation.
As time goes on and the Dollar continues to get inflated, $AMPL’s target price accounts for this inflation to effectively increase in price and capture the value of time.
What is Time?
Time is money, or so the saying goes.
Everyone on the planet spends time, it’s universal. We spend time with our loved ones, at work, on entertainment, on everything we do. Therefore, time is the most valuable asset — “the ultimate currency”.
Now, let’s dissect the saying, “time is money”.
In terms of money, time is a representation of the collective economic energy stored by humanity. For instance, people trade their time for money when they work. You spend time on your job, which earns you money… you are converting your most valuable asset into money.
However, in today’s society where people trade time for fiat currency, it’s not a fair trade, not even close. This is because the currency we trade our time for is inflationary and loses its value over time.
That said, how can the value of time really be captured?
It can be captured with $AMPL.
$AMPL Price/Supply Mechanics and Time
$AMPL captures the value of time because its dollar value revolves around the target price of $1 as determined by the 2019 Consumer Price Index. In this way, $AMPL is not subject to inflationary devaluation like fiat currencies. Rather, the value of $AMPL forever captures the value of time.
In 2019, the value of the US Dollar was the same as 1 $AMPL: $1.00. Fast forward to the present day in 2021, and the value of the US Dollar is still $1.00.
$AMPL, however, targets the value of the CPI-adjusted 2019 US Dollar which is currently at $1.065. Comparing this target price to just 1 year ago and it was $1.01.
In order to revolve around this slow-moving price target, the Ampleforth protocol automatically adjusts the supply of $AMPL across all user wallets based on price. When price is high, wallet balances increase. When price is low, wallet balances decrease. This supply adjustment operation happens once per day and is called a rebase.
See below, a sample of $AMPL’s rebase history from July 23, 2021 — August 10, 2021:
As you can see, the CPI-adjusted 2019 US Dollar price target changes with time. And depending on what the price of $AMPL is at the time of the rebase, the protocol will automatically adjust the supply up or down.
When supply is adjusted, market actors are incentivized to buy or sell (trade) $AMPL to turn a profit, which effectively brings $AMPL within the equilibrium range of the target price.
You see, $AMPL effectively captures the value of time as its target price is never devalued. Therefore, if $AMPL captures time and if time is money, $AMPL is the ultimate currency.