How Fibonaut’s Revolutionary Chart Stabilization Works
Tags: Crytocurrency, Coins, Token, Bsc

How Fibonaut’s Revolutionary Chart Stabilization Works

The following is taken from the Fibonaut whitepaper.

Fibonaut, a BSC-based project, attempts to solve several common issues affecting other cryptocurrency tokens. Decentralized finance has made token creation easier than ever, creating a surge of new tokens each day. Some token creators try new and innovative concepts, though the vast majority of token contracts are carbon copies, changing little more than the name. What’s more, even with those that do offer something unique or different in way of tokenomics, most will fall short of expectations. The reality is that, no matter how ambitious or enticing a project, holders will want to take profits. Everyone invested into a project has the human desire of financial gain in mind at all times. We can consider “the market” to be the collective perception of each and every investor in a project. Because the market all has the same general goal in mind, to make financial gains, the market will more or less behave in a concurrent manner, not unlike a school of fish. Regardless of any small deviations, the group will more or less act predictably similar.

As a token, especially the promising ones, increases in value so does the likelihood that its holders will take profits in order to realize their financial gains. Some of the sellers will sell early, some will sell later, and most will sell around the same time. Then, hopefully, after the price has decreased, more investors will choose to buy in and reset the cycle. However, in the fast-paced world of DeFi, this simple behavior can break a token, by crashing its price beyond repair. Because the market is a group of people, it is prone to emotional reaction and will panic at a declining price, further exacerbating the issue. What’s worse, when new investors join the market, they will (generally) be put off by a crashed token price. There are a few factors which contribute to this unfortunately common outcome:

Whales — holders with an unusually high percentage of tokens relative to total supply Complete wallet dumps — holders are able to sell their entire wallets in one sell No transaction limitations — holders are able to sell anytime High circulating supply — tokens are plentiful and given away for free Airdrops — Some holders, who might also be whales, were sent their tokens without having to purchase them High taxes — users encounter high taxes when buying or selling a token, sometimes over 18%

The above factors make a token crash all but inevitable. The only thing that could carry a project out of market dumps like that are those that have a good amount of community momentum. This, while nice, is very hard to keep going without major news or mainstream attention. Even then, it will require more and more to keep the price up as the market, still predictable, continues to try to dump at the first sign of profits.

The Solution

The solution to the classic problems of most tokens is Fibonaut’s approach to controlled, limited token sell frequencies. The average investor loses on the majority of their trades. Because the average investor is the market, they will create the same market cycles over and over. In traditional finance a company’s stock price can fluctuate knowing the company has gone nowhere. In DeFi with its inherent volatility, a simple fluctuation can cause a panic, subsequent crash, and spell the end of a token sometimes within hours of launch. The best way forward is to protect holders from themselves and the bad trades of others. Fibonaut does this by implementing the following safeguards:

Max Wallet Control — No wallet can hold more 161.8 tokens, which is 1% of the supply, meaning no whales Quantity Limits — No wallet can sell more than 1.618 tokens at a time, meaning no complete wallet dumps causing a sudden drop in price Sell Frequency Limits — No wallet can sell more than once within each allotted interval (explained in the next section), meaning no sudden serial selling attempting to get around the Quantity Limitation Sell Intervals — Wallets can only sell in preset increasing intervals of time, meaning everyone must stagger their sells for longer amounts of time Limited Supply — With a small total supply of 16,180 tokens, and no minting nor self-reflection functions, Fibonaut will eventually encounter major supply shock, further increasing the price No Airdrops — Fibonaut will not airdrop any tokens to anyone, even the team, meaning no one will receive tokens without having to purchase them BUSD Rewards — Holders will receive rewards in BUSD (stablecoin) at 5% of each transaction proportional to their holdings, meaning longterm holders have a way to earn without selling Unique Contract Code — This contract has never been done before; it’s development has been catered specifically to solving the problems of price drop in traditional BSC and ETH-based tokens Sensible Taxes — A simple 10% flat tax applies to all transactions. 5% generates BUSD rewards, 3% automatically is added to token liquidity, and 2% goes to marketing and development of the token

The above safeguards will dramatically protect the chart and long-term price action of the token. Huge price fluctuations will not be possible, and steady growth is inevitable. Many of the listed solutions have been done before in DeFi. However, their combination is what is important. Moreover, Fibonaut’s selling intervals are a revolutionary new addition to the traditional Solidity contract.

Why It Works

Fibonaut’s sell intervals prevent holders from selling any time they choose to. It effectively forces everyone to abide by the same schedule of long-term holding. However, they increment over time. Holders are only able to sell (up to 1.618 tokens) at each minute number of the Fibonacci sequence from the time of their first buy, with a 1-minute window (margin) for sells occurring in less than one hour (55 minutes), and a 16-minute margin for sells occurring after an hour. If you are familiar with the Fibonacci sequence, this means exponential growth in how long the holder must wait for their next sell. This means that to sell a maximum (1%) wallet of 161.8 tokens, the holder must meet each sell interval (including 1 minute after they bought) for a total of 1,226,132,595,394,188,293,000,174,702,095,995 years. Holders are not able to cheat the system, either. Buying again will not reset the _firstBuy timestamp, so their first buy will set the timetable of allowed sell points and margins for their wallet’s lifetime. Holders are not able to transfer tokens from wallet to wallet to evade this system.

How It Works

Fibonacci Sequence — Each Number is a Sell Interval

_fibArray = 1, 2, 3, 5, 8, 13, 21, 34, 55, 89 …

If a user, Bob, decides to buy any amount of Fibonaut (FIB), at 12:00pm, the contract will automatically timestamp this buy. He is then able to sell up to 1.618 tokens one time each interval in the above Fibonacci sequence. Each interval is one minute passed from his buy time. Because it is almost impossible to sell exactly at the right time, the contract first allows him a one-minute margin of error to do so. Therefore, he can sell at 12:01pm, 1 minute after he has bought. He can, consequently, sell 2 and 3 minutes after, meaning (because of the 1-minute margin) that he can sell anytime within the first 3 minutes from purchase.

12:00pm — Bob buys 100 tokens without checking the contract

12:01pm — Bob sells 1 token as a test

12:02–12:13 — Bob was watching the chart and missed his next sells

12:15 — Bob notices the price has risen and attempts to sell his remaining 99 tokens (common thought process for a token investor). The sell is rejected by the contract.

12:16–1:00pm — Bob researches the token and attempts to sell unsuccessfully again. He realizes he needs to check his wallet transaction history and find his _firstBuy in order to time his next sell. He realizes he can sell again at 1:29pm.

1:32pm — Bob sells 1.618 tokens slightly after the set sell time, though within the allowed margin of 16 minutes. He tries to sell again and is rejected because he has already sold within this sell interval. His wallet is still holding 97.382 tokens.

Because Bob, and everyone else, must wait longer and longer for their next sell point, they won’t sell many tokens. However, because most people will not sell many tokens, the price will continue to climb. Market psychology is to panic at the sight of red candles in a chart, and to get excited at green ones. A steady fast-rising chart will cause pandemonium. As the price of the token grows, selling 1.618 tokens could very easily mean far more gain than Bob initially invested.

The 9th number in the sequence is 55. At this point, all holders are rewarded for their patience with larger margins of error to sell in. For every interval at or after 55 minutes, Bob has a 16-minute window to sell once. He doesn’t, however, have any obligation to sell.

After the first ten numbers in the sequence (0, and the first 1 have been omitted since that wouldn’t make sense for this contract) the wait times start to increase exponentially. Bob will very soon need to wait hours for his next sell point. And then days, weeks, months, years, decades. He will likely only be able to sell 38 times since he will need to wait 74~ years for his 38th sell.

At this point, you might wonder why the maximum wallet is 161.8, since no holder of that many tokens will ever sell them all. The reason the maximum wallet is higher than something like 38, other than that it matches the golden ratio for our theme’s sake, is that the more tokens a user holds the higher their BUSD rewards. This encourages investors to purchase maximum wallets in order to reap long-term rewards in a stablecoin. This is enticing as they won’t need to expect any sudden drops later on. What’s more, this helps lock up supply and effectively deflates the token, as 123.8 tokens will likely never be sold. Any token whose supply nearly runs out will experience what is known as a supply shock, causing dramatic price increase.

Every aspect, feature, and limitation in Fibonaut has been designed to create the most compelling chart ever. Our exponential growth using the Fibonacci sequence goes hand in hand with our astronomy theme, aiming to send Fibonaut even further than the moon.

Website: www.fibonaut.net

WhitePaper: https://www.fibonaut.net/s/Fibonaut-Whitepaper.pdf

Telegram: https://t.me/+CnRj5ezE2j42M2Qx