Editor's Note: This article comes fromChatting with Xiaozha (ID: xiaonazha88), reprinted by Odaily with authorization.

Editor's Note: This article comes from

1、《Chatting with Xiaozha (ID: xiaonazha88)》

2、《Chatting with Xiaozha (ID: xiaonazha88)》

3、《, reprinted by Odaily with authorization.》 

The Afei Brothers have a very in-depth thinking about the currencies of fiat currency, btc, and ampl under the blockchain economy, and have written a lot. Interested friends can read the following three articles:

On the coin track, I thought there would be no more novelties, but ampl changed my opinion

Currency thinking under the blockchain economy (2)

Analysis of some basic principles about algorithmic stablecoins

The following is A Fei's further thinking on the algorithmic stable currency, which is very inspiring and I would like to share it with you.

1. The quantity of fiat currency and BTC both increases in one direction, but BTC is the upper limit. At the same time, in the long-term perspective, one of the two is unilateral depreciation of value, and the other is unilateral appreciation of value. Both are bound to cause inflation or deflation. Both are "entropy-increasing" in their respective ways.

2. Because of the ultra-liquidity, the boundary between assets and cash is very blurred, which will inevitably lead to the reluctance to sell BTC and the sell-off mentality of legal currency, and a more flexible state is needed between the two. Because the economic aggregate is changing at any time, if it is not feasible to use a currency with a long-term unilateral trend, you can only use a currency whose future trend is in a floating state.

(1) BTC is also unknown in the short-term trend, and can also be used as a pricing unit in the short-term, but it is not possible in the long-term (deterministic deflation).

(2) Some currencies with a fixed inflation rate are also not acceptable, because no one knows the future inflation.

(3) Because of the real-time data feedback of the entire network, the issuance of currency and the economic aggregate should be more accurate in terms of time granularity, so as to achieve zero inflation and zero deflation.

3. The rebase mechanism is a great innovation:

(1) Rebase adjusts the total amount of delivery by collecting feedback data (price changes) from the entire network (simulating the central bank's short-term currency delivery and recovery model, because rebase is updated every 24 hours, which is faster than the central bank's response speed), and quickly smooths out Currency inflation and deflation of the entire network.

(2) Rebase allows a carrier to have both asset and cash states. Compared with BTC, currency holders will not hesitate to sell; compared with digital legal currency, currency holders will not sell, more flexible state.

(3) The mechanism of ampl allows one end to connect to ampl/other token trading pairs, and the other end to connect to all token holders. It collects the real-time operating status of the entire network economy in the largest range to generate ampl real-time prices. In the later stage, ampl is the largest price oracle machine.