⏺️Token Lifecycle

The Friddy team has provided a comprehensive answer explaining the token life cycle and flow of the Friddy stable coins (Friddy) and Friddy Profit (FriddyP) coins. They've outlined the minting, transferring, and burning process of these tokens and the role of the various participants, including Liquidity Providers (LPs) and merchants. However, there are a few points that need to be more precise to enhance understanding and validity.

1. Ethereum Improvement Proposal (EIP) Standards: Your documentation refers to EIP standards in several places. EIPs are specific to Ethereum blockchain, but Friddy's system is built on Hedera Hashgraph. Hedera has its own unique set of protocols and guidelines. Therefore, you should refer to Hedera's standards, not EIPs. The use of correct references will not only prevent confusion but also ensure that the technology is accurately represented.

   You will find below HEDERA standard considerations. We hope that is satisfactory.

2. Funding of the Hot Wallet: You mention that if the hot wallet does not have a sufficient amount of Friddy stable coins, a smart contract is triggered to fund the hot wallet from the cold wallet. The question here is why does the hot wallet need to be funded in the first place? A clearer explanation of the underlying reasons for this step would be useful. It might be assumed that this funding ensures liquidity for transactions, but this needs to be explicitly clarified in your answer.

   We fund the hot wallet from the cold wallet for two reasons. First, it is cost-effective to mint a large sum that has a relatively fixed cost, rather than incurring a cost per minting per transaction. Second, it enhances security because the cold wallet deals only with the hot wallet, which limits public access to it.

3. Guaranteeing the $0.01 value of FriddyP Coin: You mention that the FriddyP coin will start at $0.01 per coin. But the question remains, how do you guarantee this value? Does it have a built-in price stability mechanism or is it backed by a reserve of assets? Without more detailed information on how this value is maintained, there is a potential for misunderstanding.

   Just like in Friddy coin, FriddyP as the beginning of the journey is only issued as a profit to the LP as the profit gains per transaction, the reason we are not using Friddy coin is our indentation to strategically launch FriddyP coin as a speculative coin later on. Since it is Permissioned at the beginning, the price is set and controlled by Friddy, and since it doesn't deal with backing, but represents the value of profit of LP it is easier to set the price of it. The LP exists FriddyP by swapping it to Friddy coin, and that makes the total profit part of the upcoming cashout, and the coins move to the Burn wallet Called profits wallet, which acts as a single ledger point calculating our LPs profits at any time.

   Once FriddyP is launched, later on, there has to be a proper framework for legal, and financial management the tokonomics of it. But the major thing it will enjoy once launched is a proven published history of all profits it distributed to its LP.