What is Ampleforth Governance Token (FORTH)?

Deep Dive

1. Governance Mechanism

FORTH empowers holders to propose and vote on changes to the Ampleforth Protocol via its decentralized autonomous organization (DAO). Decisions include protocol parameters, treasury allocations, and integrations with other DeFi platforms. Users can delegate voting rights, fostering participation without requiring constant engagement (Ampleforth).

2. Tokenomics and Security

With a fixed supply of 15 million tokens, FORTH avoids inflationary dilution, preserving governance influence. Tokens are resistant to seizure or freezing, aligning with decentralized principles. This structure ensures long-term alignment between holders and the protocol’s success.

3. Role in the Ampleforth Ecosystem

FORTH governs the Ampleforth Protocol, which includes AMPL—a cryptocurrency that adjusts its supply daily to target price stability. AMPL’s elastic model shifts volatility from price to supply, while derivatives like SPOT (a low-volatility asset) and stAMPL (amplified rebase exposure) offer tailored risk profiles. FORTH’s governance ensures these mechanisms adapt to market needs (Ampleforth).

Conclusion

FORTH is the democratic backbone of Ampleforth’s innovative monetary ecosystem, balancing decentralized governance with elastic supply mechanics. As the protocol evolves, how might FORTH’s governance adapt to new challenges in algorithmic stablecoins?