Bonding Curve - Revision history

TiberiusB: /* Augmented bonding curve */

2022-04-23T18:00:17Z

Augmented bonding curve

TiberiusB: /* Minting / Burning on demand */

2022-04-23T17:58:53Z

Minting / Burning on demand

TiberiusB at 17:52, 23 April 2022

2022-04-23T17:52:14Z

TiberiusB at 17:49, 23 April 2022

2022-04-23T17:49:01Z

TiberiusB at 17:03, 23 April 2022

2022-04-23T17:03:53Z

TiberiusB: Created page with "A token bonding curve (TBC) is a mathematical curve that defines a relationship between price and token supply. In a typical TBC, the price increases as the supply of the tok..."

2022-04-23T17:03:39Z

Created page with "A token bonding curve (TBC) is a mathematical curve that defines a relationship between price and token supply. In a typical TBC, the price increases as the supply of the tok..."

New page

A token bonding curve (TBC) is a mathematical curve that defines a relationship between price and token supply.

In a typical TBC, the price increases as the supply of the token increases, and decreases as the supply decreases. As the Aavegotchi Bonding Curve was launched through an Aragon Decentralized Autonomous Initial Coin Offering (DAICO)

=Mechanics=
==Minting / Burning on demand==

Bonding Curves use a pricing algorithm to serve as an automated market maker and provide an always available source of liquidity. Users can interact with a bonding curve by staking tokens into the bonding curve’s reserve pool. When they do so, the bonding curve mints the corresponding tokens for the user based on the pricing algorithm. The newly minted tokens can have specific utility and even be traded among users, but can always be exchanged back through the bonding curve for tokens in the bonding curve’s reserve pool.

When a token is purchased via a TBC, each subsequent buyer will have to pay a slightly higher price for each token, generating a potential profit for the earliest investors. As more people find out about the project and the buying continues, the value of each token gradually increases along the bonding curve. Early investors who find promising projects early, buy the curve-bonded token, and then sell their token back can earn a profit in the future.

See more on [[Genesis]]

=Augmented bonding curve=
The Augmented Bonding Curve enables public goods-focused communities to have the same funding model as tech startups, but with a decentralized, open way for the public benefit.

@@ Line 51: / Line 51: @@
 =Augmented bonding curve=
-The Augmented Bonding Curve enables public goods-focused communities to have the same funding model as tech startups, but with a decentralized, open way for the public benefit.
+The Augmented Bonding Curve was introduced by Commons Stack ([https://medium.com/commonsstack/the-augmented-bonding-curve-part-1-a-web3-way-to-fund-public-goods-7c9d1a871ae2 see article]).
 ==See also==

@@ Line 15: / Line 15: @@
 When a token is purchased via a TBC, each subsequent buyer will have to pay a slightly higher price for each token, generating a potential profit for the earliest investors. As more people find out about the project and the buying continues, the value of each token gradually increases along the bonding curve. Early investors who find promising projects early, buy the curve-bonded token, and then sell their token back can earn a profit in the future.
-'''Uncapped market''':  A capless bonding curve is a bonding curve where no maximum token supply is specified. This means that the curve can indefinitely continue to issue new tokens when demand is there. This can be useful for markets where you wouldn’t necessarily know the upper bound of interested /organisations. For example, if you made a lottery where the ticket was a token, you don’t want to limit the number of tickets/tokens that can be sold, so instead of having a fixed token supply, you have an uncapped market.
+==Interactions==
 =Functions=

@@ Line 15: / Line 15: @@
 When a token is purchased via a TBC, each subsequent buyer will have to pay a slightly higher price for each token, generating a potential profit for the earliest investors. As more people find out about the project and the buying continues, the value of each token gradually increases along the bonding curve. Early investors who find promising projects early, buy the curve-bonded token, and then sell their token back can earn a profit in the future.
-See  more on [[Genesis]]
+'''Uncapped market''':  A capless bonding curve is a bonding curve where no maximum token supply is specified. This means that the curve can indefinitely continue to issue new tokens when demand is there. This can be useful for markets where you wouldn’t necessarily know the upper bound of interested /organisations. For example, if you made a lottery where the ticket was a token, you don’t want to limit the number of tickets/tokens that can be sold, so instead of having a fixed token supply, you have an uncapped market.
 =Functions=
@@ Line 43: / Line 43: @@
 =Augmented bonding curve=
 The Augmented Bonding Curve enables public goods-focused communities to have the same funding model as tech startups, but with a decentralized, open way for the public benefit.
 [[Category:Vocabulary]]
 [[Category:DAO]]

← Older revision		Revision as of 17:03, 23 April 2022
Line 14:		Line 14:
	=Augmented bonding curve=		=Augmented bonding curve=
	The Augmented Bonding Curve enables public goods-focused communities to have the same funding model as tech startups, but with a decentralized, open way for the public benefit.		The Augmented Bonding Curve enables public goods-focused communities to have the same funding model as tech startups, but with a decentralized, open way for the public benefit.
		+
		+
		+	[[Category:Vocabulary]]
		+	[[Category:DAO]]

@@ Line 1: / Line 1: @@
 A token bonding curve (TBC) is a mathematical curve that defines a relationship between price and token supply.
-In a typical TBC, the price increases as the supply of the token increases, and decreases as the supply decreases. As the Aavegotchi Bonding Curve was launched through an Aragon Decentralized Autonomous Initial Coin Offering (DAICO)
+With smart contracts, we are able to move many functions into a more automated and decentralized sphere, on the blockchain, a broader range of transactions can be carried out without any human or external interference. As a consequence, [[blockchain protocol ecosystems]] to become increasingly independent, decentralized, and automated. One concept that is making waves is an automated market maker (AMM), or the token bonding curve (TBC).
 =Mechanics=
@@ Line 11: / Line 16: @@
 See  more on [[Genesis]]
 =Augmented bonding curve=