Everything You Need to Know About GPRL

Gold has arguably been the oldest economic standard since the earth was formed. It is safe to say gold is nature's own currency. The most important assets, including the ones held by the government, are backed by gold (case in point: the federal reserves of major countries).

This raises the question, "What makes gold so special?"

It's simple, really: even the government knows a fact you also know but have ignored because they told you to. Gold never fails or falls (in price, that is), and that's the truth. The value of gold has remained constant through time and will continue to be as valuable as ever.

We already know this, that's why we created a cryptocurrency that's backed by gold and automatically balances itself against the value of gold. This auto-balancing is done using an advanced rebase protocol that's developed with complex mathematics, that is, the Fibonacci principle and the golden ratio (phi).

I would like to go into details about the Fibonacci principle and how it works — maybe I will. For now, however, let's talk about what's more important to you: GPRL and how it helps you achieve financial freedom.

What Is GRPL?

Many cryptocurrency projects have a fixed number of tokens before it's launched, but there are some projects where the total token supply is not fixed but automatically adjusts itself periodically. Such tokens are called elastic supply tokens, GPRL is a prime example of one.

However, GPRL is unique: it is an elastic supply token that uses the Fibonacci correction level for its rebase system. The target price for GPRL is the value of gold.

The goal of this project is to create a token that ensures a fair distribution of income or what we call the Nash equilibrium.

The thing about elastic supply tokens is that they operate like stablecoins, and some people actually consider both assets distant cousins. However, a key difference is the price of a stablecoin is pegged to a fiat currency while GPRL adjusts itself to its target value (gold) by positive or negative rebase.

And if you're left wondering what in the world rebase is and how it helps adjust the price of GPRL tokens, you can relax now.

The next section will provide you with all the information you need.

What Are Rebase Systems?

At its core, a rebase is a token adjustment protocol which helps to keep users stable and undiluted regardless of the current demand and supply of the crypto market. Rebase is targeted towards a specific commodity; for instance, the value of gold, in the case of GRPL.

Unlike stablecoins which have semi-fixed supplies and are designed to constantly track the price of their target currencies at all times, elastic supply tokens like GPRL become synthetic commodities with fluctuating prices and circulating supplies that periodically balance towards the price of gold (for GPRL).

Elastic supply tokens are tradable and profitable, but the nature of the token makes it either too good when you profit or potentially devastating when you incur losses.

This is because gains and losses can be compounded when you trade elastic supply tokens.

How Does GRPL's Rebase System Work?

We've briefly examined how rebase systems work, so now let's talk about GPRL's rebase system — particularly how it works.

All rebase systems follow the same principle, albeit with minor tweaks to make every project unique.

The GPRL protocol uses two different rebase systems. The calculations are made by basing Fibonacci prices as the target price. The first rebase protocol automatically balances the target price using the golden ratio (having a value of 0.618). The increase or decrease in demand and supply of the token is determined by the first rebase protocol.

The second rebase protocol kicks in when the rates between target prices match the golden ratio of 0.618. This second rebase protocol is what stabilizes the price of GPRL to the price of one gram of gold.

There's a rule governing the rebase system of GPRL, and it all starts with the oracle price. GPRL uses a market oracle system to maintain correctness of price feeds. This system consists of whitelisted price feed providers who feed real-time weighted average price across a 24-hour window to a single aggregator on the chain.

(If you're a math whiz, the next part is something to geek out over.)

The Fibonacci price is set at the target price before the first rebase is calculated by taking the ratio of the oracle price for two days. The symmetry between the oracle price rebases periodically until it reaches the golden ratio value of 0.618.

The Fibonacci Price formula is as follows,

Fn = Fn n-1 + Fn n-2

Fn = Oracle price for the current day

Fn n-1 = Oracle price for the previous day

Fn n-2 = Oracle price for two days prior

The Fibonacci Rate formula is as follows,

Fn n-1 / Fn

If after the oracle price harmonizes and the Fibonacci price isn't exactly 0.618 another formula is applied for a second rebase.

Supply Delta = Total Supply * (Oracle price – Fibo price) / Fibo price

Lag = 10

Supply Alpha = Supply Delta / 10

New supply= Total Supply / Supply Alpha

However, if the Fibonacci rate equals 0.618 but the oracle price is lesser than the main target price (i.e., the value of one gram of gold in USD), the formula below is applied to achieve an equal value between the two prices.

Supply Alpha = Total Supply - (Oracle price * Total Supply / Main Target Price)

Lag =0

On the other hand, if the Fibonacci rate equals 0.618 but the oracle price is greater than the main target price, the rebase formula below is applied.

Supply Alpha = Total Supply + (Oracle price * Total Supply / Main Target Price)

Lag =0

How Is GRPL Different from Other Rebase Protocols?

There's always a fundamental difference between different rebase protocols. For projects like RMPL (a fork of AMPL), rebase is randomized and not fixed like GRPL.

For RMPL, rebase occurs when the price is below $0.95 or above $1.05 but GRPL rebase starts when the price obtained from the oracle system isn't equal to the golden ratio of 0.618.

Typically, other projects rebase their tokens every time there is a price difference of 5% in either direction.

Why Gold Is Used as the Standard for GRPL

The dollar value of 1 gram of gold is adopted as the target price of GRPL — with good reason. For one, GRPL is a community-supported project. And even more, gold is practically nature's currency. For a commodity that has been around for a long time, it has still managed to stay relevant, even up to the digital age.

Unlike the dollar which can be minted as much as the United States government wants, the value of gold isn't determined by the economic power of any country. Gold has an intrinsic value that you can feel and see, unlike any other commodity, which is why most countries are in the practice of holding gold-backed foreign reserves.

The GRPL team believes gold holds a better value than any fiat currency, and if history is anything to go by, that's largely true.

Conclusion

Believe it or not, price elastic tokens like GRPL are here to stay. These tokens are a rising sector in the decentralized finance landscape and more people are beginning to notice their benefits. With outstanding iterations and advanced mathematical concepts powering its system, a project like GRPL is showing huge promise and it's only a matter of time before the GRPL project becomes very popular.

We just have to wait and watch as GRPL takes pole position among top-tier rebase systems.

Email: support@grpl.finance

Web site: https://grpl.finance