Introducing RMPL – The Token Looking to Replace AMPL
Ampleforth (AMPL) is one of the most promising ERC-20 tokens to appear on the blockchain in several months. An adaptive stablecoin based on a DeFi (decentralized finance) protocol, its aim was to create a stable but flexible currency that would be resilient to price manipulation. At the time of writing of this article, AMPL is listed #33 on CoinMarketCap and is currently on a downhill trend. Some of Ampleforth’s biggest issues were the corporate centralization and antagonism to decentralized governance[1] as well as many problems with even getting the token on exchanges since its unusual architecture led to causing glitches[2]. But this is all history now – a new token called RMPL is here to fix the issues with Ampleforth and become the next, better AMPL.
Could RMPL Become As Big As AMPL?
RMPL is a project created by a team of blockchain veterans, who have a rich history of developing and investing in successful projects. While their names are on the website are pseudonyms, for the most part, it’s a massive nod to the traditional crypto ecosystem’s ethics of decentralization and privacy. RMPL will not be a corporate token that AMPL was – it’s a token made for all its owners. But how exactly does RMPL work?
How RMPL Improves Upon AMPL’s Formula
RMPL’s primary aim is to prevent price manipulation and exploitation. The volatility of the price is reduced by randomizing rebasing designed to create a supply-price equilibrium – in other words, the volatility is moved from the price to the token supply. Ampleforth had the same goal of minimalizing volatility but had some key issues with a combination of overcomplicated protocol and nontransparent governance. These factors caused AMPL at times to be even less stable than ordinary ERC-20 tokens[3].
RMPL fixes the issues AMPL had by providing clear and effective rules for rebasing. Just like Ampleforth, RMPL is designed around a 1$ peg. If the price stays within 5% of the target price of $1 ($0.95 – $1.05), the supply doesn’t change. Otherwise, it is adjusted at a random time within 0 to 48 hours from the previous rebase, averaging a total of 365 rebase events per year.
How does this work in practice? In simple terms, any holder’s ownership of the network is guaranteed to always remain the same, since wallet balances are being globally altered adequately to changes in demand. In other words, if you’re an RMPL holder, your wallet balance will be altered daily with a different amount of RMPL depending on the price at the time of the random rebase.
RMPL is going to launch August 3rd, 2020, and will be available for trading using Uniswap. How big will it get? As with everything in crypto, it’s hard to give a detailed prediction, but it’s worth saying that Ampleforth, with all its shortcomings and problems, has reached over the market capitalization of over $433,000,000. RMPL is created by a team of seasoned experts and designed to fix all the issues AMPL had while providing a higher functionality and a more transparent model of governance. Will RMPL only repeat the success of AMPL, or will it massively surpass it?
