Fibo on Warpcast

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https://warpcast.com/~/channel/airstack

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@fibo112358.eth

Ⓜ️oxie Quiz #1: Would a Fan Token's price go to zero if every holder sold? A: No. This is because of the buy and burn mechanism. When you check the holdings percentage on the Airstack website or MoxieScout, it only shows active wallets. However, Fan Tokens are also sent to a burn address (0x000...) after auctions and buy and burn events. Once tokens are sent to this address, they’re permanently removed from circulation. Here’s an actual example: I once held 99% of a Fan Token where the creator became inactive, and all other holders sold their tokens. After I sold my stake, here’s how the price changed: (1/2) 👇️

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@fibo112358.eth

Before sell order: TVL = 7,317, Price = 81 After sell order: TVL = 20, Price = 25 Avg. price of my sell order = 65 Even though the TVL dropped to nearly zero, the price didn’t. I was still able to exit at a price higher than my entry price. This is because over 9,000 MOXIE had been used for buy and burn, permanently locking those tokens. The auction clearing price was 1, so even after the sell-off, the price stayed 25x higher than where it started. As more buy and burn events occur, the price floor continues to rise. This makes Fan Tokens unique compared to regular tokens, offering long-term stability. Happy Moxie!

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🎩Ⓜ️ Nafas 🍖🎭

I bookmarked it so that I could read everyone at the right time, thank you for the good information you shared 🌹👍

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tradehigher.base

This is so epic!

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Hokii Ⓜ️🫡

With this buy and burn system, does moxie seem to be in every transaction is like a supply cut because it goes into the burn wallet?

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Jina pfp

The answer is no or no?

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Its also do to every buy order and the auction. When the auction closes....almost all the money from auction goes into the bonding contract for reserves. So even right after the auction you wont lose everything if everyone sold. Every purchase does the same thing. When you buy a fan token - moxie is put into the bonding curve for reserves. So all the fan tokens are covered at purchase by a reserve value that covers at least a portion of the cost. Buy and burns do the same thing except the actual fan token is burned so it doesnt exist to be sold later. So all the reserve added from this purchase just increase the reserve value for all the other tokens. Eventually the last man out can even have a huge gain over auction value....because so much buy and burn has taken place.

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This is a really interesting insight! The buy and burn mechanism definitely makes Fan Tokens unique and adds an extra layer of stability. Thanks for the explanation!

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