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Bonding Curve Overview

The bonding curve is a token pricing mechanism that adjusts the value of each token based on total supply and demand. It’s used to manage price discovery, liquidity, and fair allocation during capital raises.

📊 Key Concepts

  • Curve Shape: Convex — price increases as more tokens are purchased
  • Purpose: Encourage early participation and long-term holding
  • Implementation: Managed via smart contracts integrated with Settlemint

📌 Why It Matters

  • Simplifies investor experience with real-time pricing
  • Supports pro-rata revenue distribution via Class B tokens
  • Enables future transferability through registered ATS platforms (post-lockup)

The bonding curve logic is designed to comply with U.S. securities laws and operates under Reg CF constraints.