TL;DR - scroll to bottom
“You’ve got to start with the customer experience and work backwards to the technology,” said Steve Jobs. As such, Inflation-Resistant Peer-to-Peer Electronic Cash (Flatcoin) has been secured vis-a-vis staked AMPL (stAMPL) to support the following Public Good causes:
With ETF approval imminent, the digital asset Bitcoin will soon be legitimized in mainstream Finance. As this represents a significant advancement for Bitcoin (and humanity), its important to understand the intended purpose of Bitcoin and the roles it has grown to play since 2009.
1) What
Satoshi Nakamoto wanted to design a Peer-to-Peer Electronic Cash System, but Bitcoin instead became widely adopted as Digital Gold.
While describing Bitcoin on an online forum in February 2009, Satoshi Nakamoto states “If there was some clever way…to manage the money supply to peg it to something, the rules could have been programmed for that.”
“Instead of the supply changing to keep the value same, the supply is predetermined and the value changes,” Satoshi writes above. Due to technological limitations, Bitcoin could not be programmed as a Supply Elastic digital asset; consequently, it behaves as a Price Elastic digital commodity. In other words, the demand for Bitcoin is signaled through its price, not its quantity. This idea of Supply Elasticity can be traced to insights from the Austrian School of Economics.
In Denationalisation of Money, Nobel-Prize winning economist Friedrich Hayek elaborates why the authority to issue monies should not be monopolized by government - mainly, because private enterprise & businesses are incentivized to produce the best products. Unlike governments (i.e., no gold standard and relentless printing/debasement of money), they are accountable to free market competition. Such competition would promote the emergence of money that can retain Purchasing Power, engineered through adjustments in Supply:
“To achieve its announced aim of maintaining the Purchasing Power of its currency constant, the amount would have to be promptly adapted to any change of demand, whether increase or decrease.”
-Friedrich Hayek; Denationalisation of Money
For more info, visit - Hayek Money: The Cryptocurrency Price Stability Solution
2) Happened
The digital asset AMPL is Supply Elastic. How is the Supply of AMPL adjusted to keep the value constant? AMPL is pegged to the Consumer Price Index adjusted value of the U.S. Dollar from 2019, but this is not sufficient to keep the value constant; it just the first step towards buffering volatility. Notably, such a model for standardizing the value of money was proposed by John Nash in Ideal Money and Asymptotically Ideal Money.
Integrating the wisdom of thought leaders who’ve made invaluable contributions to economics and monetary theory, our world finally has access to Ideal Money. 15 years after Bitcoin, Peer-to-Peer Electronic Cash has been designed. This is SPOT:
In the case of engineering, it is not uncommon for a breakthrough to solve several problems at once:
Inflation Resistance
Zero Liquidations
No reliance on Bail-outs!
These favorable properties, and many others, characterize the remarkable innovation that is the AMPL-SPOT Protocol. SPOT is Peer-to-Peer Electronic Cash that does not lose (nor gain) Value.
Like Bitcoin is secured by Proof-of-Work mining, SPOT is secured by staking AMPL in the Rollover Vault.
Customer Experience for End Users - You!
It is near impossible to lay out every technicality of such a system in this post, nor is it practical for each person to understand them.
While Bitcoin is one of the greatest creations the world has seen, it is not an Inflation hedge - this is a common misconception; rather, Bitcoin is a hedge against Monetary Debasement (money printing). Fixed Supply of 21M BTC to counter Infinite Supply of Fiat Currency. Bitcoin is extremely price volatile, and so people HODL (hold on for deal life).
On the other hand, SPOT IS protection from Inflation (rising prices of goods & services). SPOT is “flat” in the face of Inflation = Flatcoin.
There are at least 3 ways a person can benefit from exposure to the AMPL-SPOT Protocol:
Hold SPOT
Low Risk/Low Reward - does not lose nor gain value; resists inflation
Medium Effort - requires familiarity with web3; available only on distributed ledgers of Ethereum Mainnet; trade on Uniswap
HODL wAMPL (wrapped AMPL)
Medium Risk/Medium Reward - price can go up or down
Low Effort - available easily on centralized exchanges like Coinbase
Stake AMPL
High Risk/High Reward - represents leveraged position on AMPL; helps secure SPOT
High Effort - requires familiarity with web3; trade on Uniswap; stake in Rollover Vault
P.S. 1) What 2) Happened are references to the FTX debacle that precipitated the previous crypto bear market. Lessons were learned, insights were gleaned, and core problems were solved for. These are addressed by the AMPL-SPOT Protocol. Complete documentation.