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.