About Amp (AMP)

Amp is a digital collateral token that helps secure blockchain-based transactions as they await final confirmation. The project leverages the powers of decentralized ledger technology to foster instant and publicly verifiable assurances for pending transfers. This framework reduces risk as it allows users to access their assets immediately upon the transfer of funds.

Amp was built as a response to the speed limitations inherent to legacy blockchains like Bitcoin and Ethereum. While these networks boast utmost security, they are lacking in terms of the pace at which they are able to confirm transactions; final verification often takes several minutes – if not hours or, in some instances, days. Amp serves to secure the value of any transfer as it lingers in an unconfirmed state or gets caught up in the confirmation process, Messari explained. 

Amp is integrated with a payments network, Flexa, which supports crypto-based transactions at brick and motor retailers. As of May 2022, Flexa was being used by some 41,000 merchants across the U.S. and Canada.

The project has a native digital asset, AMP, used as a means of collateral on the network. Per Messari, AMP is used to secure the transfer of real-world/digital assets as well as facilitate payments on Flexa. Moreover, AMP can be staked to the protocol for an annual yield.

AMP’s utility is fairly straightforward: users deposit the token into a smart-contract-managed escrow account (a collateral manager) that holds the collateral until the corresponding transfer in confirmed. According to project documentation, collateral managers are fully customizable and can be configured to meet a range of uses cases. In the event that a transaction is not verified, the community manager works to liquidate the collateral to cover any losses. Successful transactions see AMP-based collateral returned to the original holder.

How is the price of AMP determined?

AMP is a deflationary asset; its total supply is capped at 100 billion; roughly half of that total is currently in circulation. According to Messari, 20% of the token’s supply was earmarked for the project’s founder and employees. An additional 60% of AMP’s supply will be released via a series of grants and network/merchant development funds.

Why does AMP have value?

Given the speed limitations inherent to legacy blockchains like Bitcoin and Ethereum, Amp’s ability to instantly and verifiably secure both blockchain-based and brick-and-mortar transactions would seem to create an apparent value proposition, particularly given the supply dynamics and assuming the protocol continues to build its use case.

What are the main benefits of AMP?

• AMP secures payment transactions as they await final confirmation, lowering the odds of counterparty risk.
• The tokens are managed by on-chain collateral managers, also referred to as smart contracts, MarketPlaceFairness said. "These smart contracts freeze and release AMP as collateral for purchases made with different cryptos."
• AMP is exclusively integrated into a payments network, Flexa, used by over 40,000 retailers across the U.S. and Canada.
• AMP allows users to access their assets immediately upon the transfer of funds.