Buy FORTH Governance Token

The FORTH Governance Token, FORTH for short, is an essential part of the Ampleforth protocol, a decentralized finance (DeFi) project that runs on the Ethereum blockchain. FORTH is a governance token, which means that holders can participate in deciding the future of Ampleforth. This token, launched in April 2021, plays a crucial role in further decentralizing and improving the Ampleforth ecosystem.

The Ampleforth protocol itself is best known for its unique approach to stablecoins, specifically AMPL, a stablecoin that does not rely on collateral or transactions to maintain its value. Instead, the protocol adjusts the supply of AMPL daily based on the exchange rate with the US dollar (USD). If the value of AMPL rises above one dollar, new AMPL is created to stabilize the value. If the value falls below one dollar, a portion of the supply is destroyed.

FORTH differs from AMPL in that it is not a stablecoin, but a governance token. This means that FORTH users have the right to vote on proposals that can change or improve the protocol. These proposals can range from technical updates to adjustments to the economic model of the protocol. The introduction of FORTH is intended to give the community a greater role in the future of Ampleforth and to democratize the development of the protocol.

The total supply of FORTH is limited to 15 million tokens, of which approximately 8.4 million are in circulation. This limited supply, combined with an annual inflation rate of 2%, makes the token attractive to both speculators and long-term investors. FORTH offers holders the ability to directly influence the direction of the Ampleforth protocol, making it attractive to users interested in decentralized decision-making.

Ampleforth governance via FORTH is structured in six steps: discussion, formal proposal, focused discussion on forums, off-chain signaling, technical development, and a formal governance vote. This approach ensures that only carefully considered and broadly supported proposals are implemented.

Who founded the FORTH Governance Token?

The FORTH Governance Token was founded by Brandon Iles and Evan Kuo. Brandon Iles has a background in computer science and previously worked as a software engineer at tech giants such as Uber and Google. Evan Kuo has a degree in mechatronics, robotics, and automation engineering and started his career as a product manager at Yahoo. He went on to found multiple companies before becoming the co-founder and CEO of the Ampleforth project. The Ampleforth protocol, including FORTH, is governed by the Ampleforth Foundation.

The main features and use cases of the FORTH Governance Token:

• Voting rights in the Ampleforth Protocol: FORTH holders can vote on proposals that could change or improve the Ampleforth Protocol, directly influencing the future of the project.
• Promotion of decentralization: By participating in governance, FORTH holders help further decentralize the Ampleforth protocol, which is crucial for the robustness and independence of the system.
• Investment in DeFi: FORTH can be used as an investment vehicle within the decentralized finance world, with holders able to benefit from increases in the token’s value.
• Staking and rewards: Users can stake their FORTH tokens in select DeFi programs to earn rewards, providing additional income streams beyond traditional investments.

The FORTH Governance Token plays a key role within the Ampleforth protocol by giving the community the power to decide the future of the project. The governance process is designed to be transparent, inclusive, and effective, with the goal of continuously improving and growing the Ampleforth ecosystem.

The six step governance process

Ampleforth's governance process consists of six well-defined steps that ensure that only the most considered and broadly supported proposals are implemented:

• Discussion: The process begins with an open discussion in public channels such as social media, the Ampleforth Governance Discussion Forum, or community DAOs. Here, ideas are collected and formulated by community members. If an idea gains sufficient support, it can be converted into a formal proposal.
• Formal proposal: In this phase, the idea becomes a detailed proposal. There are two types of proposals possible: Ampleforth Improvement Proposals (AIPs), which concern changes to the protocol itself, and Ampleforth Configuration Change Proposals (ACCPs), which concern changes to the configuration of the system.
• Focused discussion in the forum: The formal proposal is then discussed in detail in the Ampleforth Governance Forum. Any outstanding issues or ambiguities are resolved at this stage.
• Off-chain signaling: If there are still unresolved issues after the third phase, feedback can be sought from token holders via off-chain discussions or preliminary informal votes on social media. This often provides a good indication of the final outcome of the formal vote.
• Technical development: Proposals that successfully complete the first four phases are implemented on the test network, where they are tested and audited.
• Formal governance voting: After the technical evaluation, the proposal enters the final stage, the formal on-chain voting. Here, participants use their FORTH tokens to vote. Proposals that pass the vote are automatically implemented without further intervention.

Decentralization and FORTH

The entire Ampleforth system, including FORTH, is built with decentralization in mind. This means that decisions are not made by a central entity, but by a community of token holders. This makes the protocol more robust and less susceptible to manipulation or centralization, which is in line with the core principles of blockchain technology.

Technical operation of FORTH

FORTH is built on the Ethereum blockchain as an ERC-20 token. This means that it uses smart contracts that ensure the functionality of the token and its governance process. The choice of Ethereum also offers a high degree of interoperability with other DeFi projects, which is essential for Ampleforth’s integration into broader blockchain ecosystems.

FORTH is more than a governance token; it is an essential part of a system that strives for stability, full decentralization, and community-driven control. The following features make FORTH unique:

• Unique elasticity of AMPL: The Ampleforth protocol, powered by FORTH, dynamically adjusts the supply of AMPL based on market conditions. This ensures that the value of AMPL remains stable without relying on collateral, something that almost no other stablecoin offers.
• Integral role in decentralization: FORTH is designed to promote the decentralization of the Ampleforth protocol. It gives the community direct control over the future of the project, making it one of the most democratic governance systems within the DeFi world.
• Dual token model: The separation of AMPL as a transaction token and FORTH as a governance token creates a clear division of roles that is unique in its simplicity and effectiveness. This model prevents the governance token from losing value through inflation or speculation, a common problem with other projects.
• Unprecedented transparency and participation: FORTH’s governance process is one of the most transparent and structured in the blockchain space, with clear steps to ensure only well-thought-out and broadly supported proposals are implemented.

You can buy FORTH Governance Token (FORTH) at Bitvavo, a platform for both beginners and experienced crypto traders. Follow these steps to buy FORTH via our website or app:

1. Sign up or log in to your Bitvavo account.
2. Deposit money by clicking "Deposit".
3. Go to the FORTH purchase page.
4. Enter the amount in euros you wish to invest or the number of FORTH tokens you want to buy and click "Buy".

The current market rate determines how expensive FORTH tokens are. After purchase, tokens are automatically added to your Bitvavo account, where you can easily manage and trade them.

Want to store your FORTH tokens safely? Bitvavo offers a secure and reliable environment to store your tokens. The majority of customer funds are stored in secure offline cold storage. Although Bitvavo has strict security measures in place, we also recommend enabling two-factor authentication (2FA) for added protection. This will require you to enter an additional security code in addition to your password when logging in.

You can also store FORTH tokens in external software or hardware wallets which support this token. If you want to transfer your FORTH tokens to an external wallet, always verify the wallet address in your Bitvavo account first. After this, you can easily and securely transfer the tokens to your external wallet, so that you have full control over your cryptocurrencies.