FLIP UNIT (FLUT) - a new Cryptocurrency concept

FLIP UNIT (FLUT)
a new Cryptocurrency concept

Abstract
The aim of this paper is to launch a new cryptocurrency, totally decentralized, with no ICO, no premine and no pre-assessed developing team.
The development team, and in general a community of FLUT fans, supporters, curious, will hopefully spontaneously form and grow “on the go” around the project herein drafted.
The features of the proposed new cryptocurrency, whose name will be FlipUnit (FLUT), will basically be the following:

• FLUT will be bought against ETH, through a specific smart contract.
• The FLUT purchasing system will be based on luck (that is where Flip Unit derives its name, being inspired by the basic “coin flip” game), but the “luck factor” can be appropriately adjusted, diluted, in other words “customized” according with the approach, aims, and in general with the risk tolerance attitudes of the FLUT purchaser.
• After the minimum locking period, set in 180 days, FLUT will be redeemable back in ETH (ratio 1 ETH=1000 FLUT); a specific “FLUT Conversion Contract (FLUTCC)“ whose rules will be explained below, will govern the conversion process; therefore FLUT may surely be used as a “store of value” asset.
• FLUT will be hopefully tradable on exchanges (preferably decentralised exchanges such as Cryptobridge), against BTC and other major cryptocurrencies.
• FLUT will hopefully spread as a secure meaning of exchange (i.e. a Currency), free of commissions, thanks of its own blockchain that will be based on Proof of Stake (PoS) mechanism; the rewards in favour of the participants of the PoS environment will be based not on fee systems (since the FLUT transfers will be free of charge), but on a different, unique mechanism, below explained, that will grant attractive returns to the masternodes' owners and will help increasing the stability to the system.
• Last, but not least, FLUT may also be used as a speculative asset; a specific marketplace of “FLUT Conversion Contracts (FLUTCC)“, where FLUTCC will be tradable against ETH, will be developed for such purpose.

FLUT purchasing system
FLUT will be purchased against ETH, through a smart contract, having the following characteristics:

• the purchaser will submit a purchase request by freezing an amount of ETH, at his/her discretion (the amount)
• the purchaser will choose which “side of the coin (the SoC)”, “Head” or “Tail”, he/she is willing to bet at
• the purchaser will also choose in how many “flips” the bet shall be splitted (the Number of Flips, i.e. the NoF); the choice will be from 5 to 500 flips.
• The Smart Contract will execute the purchaser instructions based on the following:
  • the amount will be fractioned in the NoF
  • for each loop (from 5 to NoF), a virtual coin will be tossed, i.e. the smart contract will generate a random number between 0 and 1, meaning that:
    • if the result is between 0 and 0,495, the Soc will be “Head”
    • if the result is between 0,505 and 100, the Soc will be “Tail”
    • if the result falls in the range between 0,495 and 0,505, the “House” will win; in such event, the smart contract will generate and assign to the Reward Fund an amount of FLUT equal to the fractional ETH amount involved in the bet x 5 x 1000
  • Finally, at the end of the loops, the smart contract will generate, and the purchaser will receive, an amount of FLUT corresponding to the number of the winning bets x 2 x 1000.
  • The smart contract will retain the ETH submitted by the purchaser and will collect it in the Reserve Fund.

FLUT standard wallets
At a prior stage, FLUT standard wallets will derive their aspect and features from already existing wallets of mineable coins based on PoW/PoS (such as VIVO, GBX, INN, QBIC, etc).
Up to the developers to design, develop and deploy more sophisticated and user friendly wallets in order to favour the spreading of FLUT as a Currency.

FLUT Blockchain
FLUT Blockchain will be based solely on PoS system, trough Masternodes (such as DASH and DASH derived coins);
For setting each Masternode it will be necessary to freeze 1000 FLUT.
Blocktime will be set each 2 (two) minutes.
Block reward will NOT consist in new minted coins.

FLUT Masternode's reward system
As specified in the “FLUT purchasing system” paragraph, a progressive amount of FLUT (statistically 5% of the FLUT supply), will be automatically generated and allocated by the smart contract in the Reward Fund.
The rewarding flow will start after 48 hours from each Masternode setup, and restart after 48 hours of any Masternode reconnection.
Each Masternode will be granted, once a day (as per convention, at. 12.00 a.m. GMT), an equal fractional amount of the Reward Fund accumulated by the smart contract from the 48 hours to the 24 hours prior the time of the distribution.
Just the first accumulation and distribution terms will be deferred, in order to allow the system to properly setup and run.
In other words, let’s assume that the first FLUT is purchased and delivered january 1st. at 12.00, and let’s assume that the first Masternode is set january 1st at 13.00.
Therefore:

• the first Masternodes’ rewards distribution will occur January 4th at 12.00;
• the amount to be distributed (equally among Masternodes proving to be enabled uninterruptedly at least 48 hours) will result of the share of the Reward Fund accumulated (if any) in the period from January 1st 12.00 to January 3nd 11.59’59;
• the second Masternodes’ rewards distribution will occur January 5th at 12.00;
• the amount of reward to be distributed (equally among Masternodes proving to be enabled uninterruptedly at least 48 hours) will result of the share of the Reward Fund accumulated (if any) in the period from January 3rd 12.00 to January 4th 11.59’59
• ....and so on....

FLUT conversion back to ETH (i.e. the FLUT Conversion Contract)
At any time FLUT owners can claim back ETH against any amount of FLUT (ratio 1 ETH:1000 FLUT) and submit a “FLUT Conversion Contract (FLUTCC)”. The conversion protocol is the following:
the amount of FLUT (whatever amount will be set by the owner) will be locked for the conversion purpose, and will remain locked (at least) for 180 consecutive days.
The smart contract will reserve and freeze the corresponding ETH amount, picking it from the Reserve Fund up to a coverage ratio equal to 100%.
In case the Reserve Fund is partially or totally uncapacious, the smart contract will “book” the missing amount (i.e. will submit a coverage request) and will fulfill it as soon a the Reserve Fund becomes again capacious, until reaching the 100% of the coverage ratio.
Coverage requests will be sequentially satisfied (upon the progressive capability of the Reserve Fund) according with the time order of each FLUT Conversion Contract submission.
After 180 days, given the condition that the coverage ratio of the FLUTCC has reached 100% level (the condition), the smart contract will transfer the corresponding ETH amount to the claimer, and the FLUT locked for the purpose will be burnt by the system.
In case the condition has not yet met after 180 days, the transfer will occur at any following time that the coverage ratio of the FLUTCC reaches 100% level.
At any time during the conversion protocol, the FLUT owner can withdraw from the FLUTCC; it means that any amount of locked FLUT can be redeemed, losing consequently any right and priority for conversion against ETH; the ETH amount eventually reserved and frozen by the smart contract for the conversion requests that have been redeemed, will be automatically credited back to the Reserve Fund.
The system will obviously keep track of the history of any conversion request, that will be public and auditable in real time; at the same moment, any record in and out of the Reserve Fund, as well as its consistency, will be public and auditable in real time.

FLUT Conversion Contracts’ Market
FLUT Conversion Contracts (FLUTCC) can be fractioned and any fraction of FLUTCC will be tradable against ETH on a dedicated marketplace.
The FLUTCC value against ETH will likely tend to reach 1/1000 value, the closer approaches its time expiry and the greater becomes its coverage ratio.
In other words, it is reasonable that during the lifetime of the FLUTCC, its evaluation in ETH and its price fluctuations will dynamically depend on:

• the actual ETH coverage ratio of the FLUTCC
• the time forecast of reaching the full coverage of the FLUTCC (which may be greater than the minimum lifetime of the contract, i.e. 180 gg)
• the time-to-expiry of the FLUTCC
• the market liquidity
  Therefore, the FLUTCC will assume an attractive speculative design.
  Meanwhile, since FLUTCC (or any fraction of FLUTCC) is “clearable” at any time prior its expiration, it will also serve as direct way to convert ETH into FLUT at a fixed amount (the market price of the chosen FLUTCC), avoiding the risk factor of the direct “FLUT purchasing system”

Conclusions
We just set up principles and gave the basic concepts of FLUT Cryptocurrency,
We are aware of the gaps of this work, of the possible issues, such as the impact of ETH commissions in the “FLUT purchasing system”, as well as the spam transactions risk in the FLUT environment (since the aim is to allow FLUT transfers free of commissions)
We are also aware that several technical issues may arise once facing the programming of the smart contracts ruling the FLUT and FLUTCC environment and features.
Therefore, this paper shall be taken as a starting point as well as a challenge.
We aim at attracting around the project herein drafted, code developers, thinkers, suggesters, fans, in order to form a community who will take charge of the FLUT project, and so will lead the development and the spreading of the FLUT Cryptocurrency.
Comment&Suggestions are welcome.

direct contact and collaborative proposals
[email protected]

TIPS for sustaining the project

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