What is Ampleforth Governance Token (FORTH)?

Deep Dive

1. Governance Mechanism

FORTH serves as the voting token for Ampleforth’s decentralized autonomous organization (DAO). Holders propose and decide on protocol changes, such as adjusting AMPL’s rebasing parameters or treasury allocations. This ensures community-driven governance, aligning the protocol’s direction with stakeholder interests (Ampleforth).

2. Tokenomics & Anti-Dilution

Unlike typical governance tokens, FORTH has a capped supply of 15 million, preventing inflation. Ownership shares remain stable even as the protocol grows, and tokens cannot be frozen or seized, ensuring decentralized control.

3. Ecosystem Synergy

FORTH governs AMPL, a decentralized unit of account with an elastic supply that expands or contracts daily to stabilize purchasing power. AMPL’s derivatives, like SPOT (low-volatility asset) and stAMPL (high-volatility asset), are managed through Ampleforth’s Rotation Vault, with FORTH guiding fee structures and risk distribution (Ampleforth).

Conclusion

FORTH is the democratic backbone of Ampleforth’s elastic financial ecosystem, balancing governance rigidity with adaptive monetary tools. How will its capped supply and DAO structure influence long-term decentralization as the protocol scales?