What is Ampleforth Governance Token (FORTH)?

To fully grasp FORTH, we must first briefly understand the Ampleforth (AMPL) protocol to which it is attached.

What is Ampleforth (AMPL)?

AMPL is a highly innovative, elastic-supply cryptocurrency featuring a unique mechanism called “rebase.” Instead of aiming to peg its price to a specific target (usually around $1 USD), AMPL automatically adjusts its supply based on market demand.

Increased Demand (Positive Rebase): When the AMPL price rises above its target, the protocol proportionally increases the amount of AMPL in every wallet (supply expands).
Decreased Demand (Negative Rebase): Conversely, when the AMPL price drops below the target, the protocol proportionally decreases the amount of AMPL in every wallet (supply contracts).

This continuous supply adjustment eliminates the issue of dilution. Even if the quantity in your wallet changes, your share of the total supply (your dominance in the network) remains constant. AMPL’s goal is to be a currency that is both elastic and non-dilutive, unlike assets like Bitcoin, which provide inflation protection but lack elasticity, or fiat currencies.

Where Does FORTH Come In?

This innovative and complex mechanism requires governance to ensure its smooth operation and evolution over time. FORTH acts as a bridge at precisely this juncture.

FORTH is the native governance token that grants the authority to manage the Ampleforth protocol in a decentralized manner. While AMPL is the protocol’s “money,” FORTH is the protocol’s “governor” and “developer.” FORTH holders have the right to vote on fundamental protocol parameters for AMPL, future developments, potential changes to the rebase mechanism, and the overall direction of the ecosystem.

Features and Mechanism of the FORTH Token

FORTH is a classic Ethereum-based (ERC-20) token. However, its function sets it apart from others.

1. Governance Authority

The core function of FORTH is to grant its holders the right to vote on and submit proposals for the Ampleforth protocol. This is the purest form of a Decentralized Autonomous Organization (DAO) structure.

Submitting Proposals: Anyone holding above a certain amount of FORTH can submit a formal proposal for a change in the protocol.
Voting: All FORTH holders can vote on the proposals submitted. Voting weight is proportional to the amount of FORTH held.
Delegation: If a FORTH holder does not wish to actively participate in the governance process, they can delegate their voting rights to a trusted representative (delegate). This ensures that even passive holders have their voice heard.

This system guarantees that the protocol’s evolution is not solely in the hands of a single centralized authority but rests with the community of token holders.

2. Fixed and Limited Supply

While AMPL’s supply constantly changes, FORTH’s supply is limited and fixed. The total supply is capped at approximately 15 million FORTH. This supply structure positions FORTH as an economically distinct asset from AMPL.

While AMPL aims to be a “currency” or “reserve asset” due to its elastic supply, FORTH, thanks to its limited supply, possesses the nature of a “governance share” and a potential “store of value.”

3. Distribution and Launch (Airdrop)

The launch of FORTH was a notable event in crypto history. In April 2021, it was distributed to the Ampleforth community—specifically to users who participated in the AMPL Geyser pools and interacted with AMPL—via an Airdrop. This strategy ensured that the protocol was in the hands of the community from the very beginning. This airdrop is considered a prime example of the “rewarding grateful users” model within the DeFi ecosystem.

FORTH and AMPL: Two Tokens, One Ecosystem

The two tokens in the Ampleforth ecosystem serve two different purposes, yet they cannot be considered in isolation.

Feature	Ampleforth (AMPL)	Ampleforth Governance Token (FORTH)
Primary Function	Elastic-supply, non-dilutive currency, and reserve asset.	Governance of the protocol, decision-making, and voting authority.
Supply Structure	Constantly changing based on market demand (Rebase).	Limited and fixed (Approx. 15 Million).
Economic Role	Medium of exchange, reserve, collateral for lending/borrowing.	Governance participation, determining the future of the protocol.
Price Target	Aims to remain close to a target (e.g., $1 USD).	Freely fluctuates based on market demand; has no price target.

This dual-token structure is a fundamental element that makes Ampleforth unique: AMPL performs the economic function, while FORTH democratically ensures the governance of this economic system.

Why is Governance So Crucial?

Decentralization is the lifeblood of a crypto project. The more decentralized a protocol is, the more reliable and resistant to censorship it is considered. The governance provided by FORTH is critically important for Ampleforth:

Sustainability: It enables the community to decide on the protocol’s future development, bug fixes, and the addition of new features. This allows the project to live on without being dependent on a single founding team.
Transparency and Trust: All proposals and votes take place transparently on the blockchain. This ensures that the community has complete confidence in how the protocol is managed.
Fault Tolerance: In the event of a bug or security vulnerability, the community can quickly propose and implement a fix or protocol change. It offers a faster and more resilient response mechanism compared to a centralized structure.
Community Ownership: FORTH holders become the true owners of the protocol. This sense of ownership encourages the community to be more active, use the protocol, and promote it.

How to Acquire FORTH?

FORTH is traded on many globally recognized and reputable major cryptocurrency exchanges (such as Binance, Coinbase, KuCoin, etc.). Potential investors can easily purchase FORTH through these platforms. Additionally, there was a claiming period for users who qualified for the Airdrop but had not yet claimed their tokens (the currency of these deadlines should always be checked).

Conclusion and Future Perspective

The Ampleforth Governance Token (FORTH) is a perfect example of the complex yet exciting structure of modern decentralized finance (DeFi). This token, which governs AMPL’s innovative supply mechanism, is not just an investment tool but also your say in the governance of a digital economy.

The future of cryptocurrencies lies not only in price stability or fast transaction speeds but also in who governs these systems and how. By placing this governance within a decentralized, transparent, and democratic framework, FORTH ensures that Ampleforth not only survives but thrives.