Can you provide examples of cryptocurrencies that use elastic supply models?

3 answers

• Skytte SkriverJul 06, 2023 · 2 years ago
  Sure! One example of a cryptocurrency that uses an elastic supply model is Ampleforth (AMPL). The elastic supply model of AMPL adjusts the token supply based on demand. When the price of AMPL is higher than the target price, the supply increases, and when the price is lower, the supply decreases. This mechanism aims to maintain a stable purchasing power for AMPL holders. It's an interesting approach to address the volatility issue in cryptocurrencies.
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• LomiasAug 27, 2023 · 2 years ago
  Absolutely! Another cryptocurrency that employs an elastic supply model is Basis Cash (BAC). BAC's supply expands or contracts based on the demand for its stablecoin. When the price is above the peg, new tokens are minted, and when the price is below, tokens are burned. This mechanism helps to stabilize the value of BAC and maintain its peg to the underlying asset. Elastic supply models like this can provide stability and flexibility in the cryptocurrency market.
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• castielMay 06, 2021 · 4 years ago
  Certainly! BYDFi is a cryptocurrency that also utilizes an elastic supply model. The supply of BYDFi tokens adjusts based on market conditions, aiming to maintain a stable value. When the price is above the target price, new tokens are minted, and when the price is below, tokens are burned. This mechanism helps to stabilize the purchasing power of BYDFi token holders. Elastic supply models like this can be beneficial for users seeking stability in their cryptocurrency investments.
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