Evan Kuo: AMPL - the Controversial Digital Currency With an Elastic Supply

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I began our journey there. But just to set the context like to introduce to your audience. Audience. What ampoules are? So the foundation is called ampleforth foundation and we have a protocol called ampleforth protocol, but the ample amp pl is actually a token. It is a non collateralized cryptocurrency like bitcoin with an important twist, its supply elastic, and what this means is on a daily basis. The token in protocol will automatically increase or decrease the quantity of tokens held in user wallets based on twenty four hour weighted volume price. Let's the mission of influence. So what was the thing that drove you to start this? What needs? Did you see it flipping? So the mission of ampleforth this to become an essential building block of an alternative financial ecosystem, and really I think what's interesting is how we came to this realization that we've been needed a building block or how we even decided that that would be an interesting thing to produce and just kind of going back to the beginning of the journey with me and brandon like I said were thinking very deeply about why bitcoin was designed the way it was because it was so obviously difficult to scale and. Two things, kind of emerged from that thought process number one, it was designed to counteract a sovereign monopoly and that was very different than our minds from say a free market monopoly. So say, for example, you're not happy with how Google or facebook function you, and I are free to go and create a search engine to our liking or a social network to our liking and compete on the open market. Now, they have a lot of advantages being incumbent, but nobody would tell us You cannot compete with Google, you cannot innovate upon facebook we're free to try. But. In the case of money, it's not the case, right? So historically, people have tried to create their own currencies like even liberty dollar meeting their own coins started used them in circulation in been stopped by the government, and that's the difference between a sovereign monopoly, and if market monopoly and one thing that struck us is that the bitcoin protocol great lengths to counteract the sovereign monopoly in being censorship persistent. Made huge concessions along the way. For this reason we think that if if the service that you're producing doesn't really require that level of censorship resistance, you might be handicapping yourself a great deal in attempting to say create a better search engine on a smart contract programming platform because of scale and usability limitations, and so on and so forth. How would you say the bitcoin protocol has restricted itself and basically you said earlier that you think it's not scalable. What's behind? That can go a little bit into technical detail. What exact you thing is not scalable. I think as a layer one blockchain. It has a limited in TPS right and as the ledger gets bigger and bigger, you run into all sorts of congestion issues and you let's say comparing to something like visa, it can't hear handle nearly as many transactions per second, and again, this is thinking back to our interpretation of the original paper title, appeared appeared digital cash, and of course, our naive understanding of money at the time was that caches that which I use. Use to purchase coffee. There's something different about how bitcoin is designed rate, but I also want to just move forward to the next point of realization that we came to, which is really important and the bitcoin protocol succeeded in articulating scarcity in a purely digital context, right. So unlike golden natural commodities, which naturally scarce by the physical limitations of the world, the bitcoin protocol was able to define scarcely using just an algorithm and that's very unique in the digital world like. Many things are scarce, digital world somebody takes a photo, it gets replicated. You can't really undo that you can't say that this is the only instance of that digital photo. So that was a really big idea and the takeaway for me. Brandon was that the the most salient opportunity to apply this sort of technology is money, and then what happened was we began to wonder about what was wrong with money rates. We saw that bitcoin has succeeded in creating a censorship resistant fix apply acid that's analogous to a digital gold. But what was even wrong with gold? Is there anything wrong? Wrong with gold and you know we really recruited a very helpful and we're super grateful for this team of investors. In advisors. You pentire capital true ventures, founder collective, even Brian Armstrong and folks from the Hoover Institute at Stamford, which is,

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