# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://elements-organization-2.gitbook.io/ift/trading-an-ift/bonding-curve.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.