> For the complete documentation index, see [llms.txt](https://elements-organization-2.gitbook.io/ift/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elements-organization-2.gitbook.io/ift/trading-an-ift/bonding-curve.md).

# Bonding Curve

The bonding curve is the initial trading mechanism for a newly launched IFT, designed to establish fair and transparent price discovery and minimize trading slippage.

* Algorithmic Pricing: Tokens are minted or burned algorithmically based on demand:
  * As users buy IFTs, the price increases along a predefined mathematical curve.
  * When users sell, tokens are burned, and the price decreases accordingly.
* Fair Distribution: The bonding curve ensures:
  * Zero Presale: No tokens are reserved or sold before launch.
  * Zero Creator Allocation: Creators must purchase tokens like any other participant, ensuring fairness.
  * Permissionless Access: Anyone can trade the IFT without restrictions.
* Transition to AMM: When the token’s market cap reaches a predefined threshold, liquidity is migrated to a Uniswap v2 pool. This transition can be triggered by any user and is automated to ensure seamless market access.


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