📎FRIDDY MULTIAGENT PRICE STABILIZATION MODEL
Last updated
Last updated
In a multiagent network model consisting of nodes, each network node has an agent and priced Friddy coins, and the agent can buy or sell Friddy coins in the marketplace. Though every node may not effectively have an equal price during the transaction time, the prices has to reach an equilibrium by iterating buy and sell transaction on a macro level. First, we present a protocol model in which each buying agent in the network (buyer or seller) makes a bid to the lowest priced coins in the part of the network they are at, and that could be an exchange for instance; and each selling agent selects the highest bid, if any. Second, using our model we derive a condition to stabilize price. We also show the equilibrium price can be derived from the total circulating fund and the total Friddy coins for any network. This is a special case of the Fisher’s quantity equation[1], and that is the measure we will use to gauge the accuracy of our model. In this paper we will test the best bidding strategy is available to our coin protocol. Third, you will see that we have analyzes stabilization time for what we call path and cycle networks. Finally, simulate market experiments to estimate the tame it should take to stabilize the price of Friddy coin, it’s important to note the larger number of market bidders of our coin the more there is an impact on the spreading of funds and the more the model should be tested to understand its ability to stabilize the coin in the ecosystem. This model has shown strong to calibrate the network topologies impact on price stabilization.
Read FRIDDY MULTIAGENT PRICE STABILIZATION MODEL Paper on:
Under : Computer Science > Artificial Intelligence:
https://arxiv.org/pdf/2108.05436
[1] The Fisher Equation lies at the heart of the Quantity Theory of Money. MV=PT, where M = Money Supply, V= Velocity of circulation, P= Price Level and T = Transactions. T is difficult to measure so it is often substituted for Y = National Income (Nominal GDP). Therefore MV = PY where Y =national output.
Keywords: Friddy Coin, multiagent model, price stabilization, self-stabilization, cryptocurrency.
