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"All in all, Ampleforth is an innovative cryptocurrency that solves a major problem that faces cryptocurrency - price stability. The biggest hurdle Ampleforth will have to overcome is people understanding how rebasing works. It's not a scam or even dangerous.

"Base-money protocol Ampleforth has announced the launch of a new governance token Wednesday, setting the stage for further expansion and community engagement following a successful year of adoption. "

The primary purpose of using a stablecoin is to achieve a peg to a fiat currency, usually the U.S. dollar. However, "non-pegged" stablecoins aren't pegged to any fiat currency - their values float and change over time. Non-pegged stablecoins aim to have low short term volatility, allowing them to be practically used as a unit of account. However, over the long-term their values change according to their own demand and the demand for the underlying crypto-assets. Ampleforth, which was launched in June 2019, has been followed by Float (launched on February 5, 2021), Rai (February 17), and Fei (March 22).

Fei Labs concluded a successful genesis launch of its Fei "non-pegged" stablecoin, raising nearly $1.3 billion in Ethereum from over 17,000 contributors. Stablecoins are typically pegged to a fiat currency, usually the U.S. dollar. However, the values of non-pegged stablecoins float and change over time. They aim to have low short term volatility, while allowing their values to change according to their own demand and the demand for the underlying crypto-assets, over the long term. Ampleforth (launched in June 2019) was one of the first, being followed by Float (February 5, 2021), Rai (February 17), and now Fei.

The Dynamic Set Dollar (DSD) is a fully decentralized stablecoin that unlike centralized coins, e.g. USDT, has no 1:1 backing through a centralized USD treasury. To be highly capital efficient it does not use any collateral, like the main competitors DAI or sUSD. The voluntary elastic supply mechanic is different from Ampleforth (AMPL) and Based (BASED). It is inspired by Empty Set Dollar (ESD), yet responds faster to market demand through more frequent epochs, extended supply caps, and a modified supply extension/contraction formula. https://dsd.finance/

It's hard to see why Ampleforth (AMPL) or YAM could ever replace a dollar. While the price of these tokens is relatively benign, their quantity fluctuates wildly. So the total purchasing power of AMPLs (or YAMs) held in one's wallet is quite volatile despite the purchasing power of a given AMPL (or YAM) being stable. Put plainly, these aren't dollar substitutes. The main use case for AMPLs and YAMs is as tokens in a financial betting game. Think of them as an access point to a self-referential guessing game-that is, a Keynesian beauty contest.

"Can an algorithmic stablecoin truly achieve long-term viability? Will algorithmic stablecoins always be subject to extreme expansionary and contractionary cycles? Which vision of an algorithmic stablecoin is more compelling: a simple rebasing model or a multi-token "seigniorage" system (or something else entirely)?"