Bonding Curve

A Bonding Curve is a smart contract that automates token pricing based on supply and demand. Instead of a fixed price, the curve algorithmically adjusts the token's value during its initial sale, ensuring a transparent and fair launch.

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Key Mechanics

• Dynamic & Transparent Pricing: The token price starts low and programmatically increases as more tokens are purchased. This entire process is on-chain, preventing price manipulation.

• Rewards for Early Adopters: The model inherently rewards the earliest supporters with the most favorable prices.

• Instant Liquidity: The bonding curve holds a reserve of a base currency (e.g., $ANLOG), allowing investors to buy or sell tokens back to the contract at any point during the sale. This provides immediate liquidity from day one.

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The Fair Launch Process

On each token page, you will see a "Fair Launch Progress" bar. This bar tracks the initial sale on the bonding curve. When a project hits its fundraising goal (e.g., $50,000 in market cap), the bonding curve sale concludes, and the token "graduates".

Seeding Strategy: From Bonding Curve to DEX

The transition/graduation from the initial "Fair Launch" on the bonding curve to the live market on the Firestarter DEX is a critical process designed to ensure a stable and liquid trading environment from day one.

Here's how the process works:

1. The Fair Launch

   • 100% of the token supply is sold via a bonding curve until a $50,000 market cap is achieved.

2. Automated Migration

   • Upon reaching the $50,000 cap, the bonding curve sale automatically closes, and migration to the DEX begins.

3. Liquidity Pool Creation

   • 94% of the raised funds, along with an equal proportion of the tokens, will be used to seed the liquidity pool on the DEX.

   • This pair is deposited into the Firestarter DEX, establishing the token's initial liquidity pool.

4. Permanent Liquidity (Rug-Pull Prevention)

   • To make the initial liquidity permanent, 94% of the corresponding Liquidity Provider (LP) tokens on the bonding curve are immediately burned.

   • This prevents the creator or platform from withdrawing the liquidity, securing the market.

5. Fund Allocation

   • The remaining 6% of capital is allocated as follows:

     • 5% to the Protocol Treasury: Funds platform development, security, and $ANLOG token buybacks.

     • 1% to the Creator: A milestone reward vested over seven days to prevent market impact.

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Example Scenario: How Price Changes

A bonding curve automatically prices a token based on a simple formula:

$Price = \frac{Total\_Tokens\_in\_Pool}{Total\_Capital\_in\_Pool}$

As people buy, capital enters the pool and tokens leave it, causing the price to rise. Let's walk through an example.

Step 1: Setting the Initial Price with a "Virtual Offset"

A new token cannot start with a price of $0. We establish a non-zero starting price using a Virtual Capital Offset. This isn't real money; it's a starting value in the smart contract that gives the token a price from the very first moment.

• Goal: Launch a token at an initial price of $0.00015.

• Tokens on Curve: 980,000,000

• Calculation: Initial Price × Tokens on Curve = Virtual Capital Offset

• Result: $0.00015 × 980,000,000 = $147,000

The bonding curve now behaves as if it's starting with $147,000 in its pool.

Step 2: The First Purchase

An investor decides to buy $1,000 worth of the token.

• Real Capital Added: $1,000

• New Total Capital: $147,000 (Virtual) + $1,000 (Real) = $148,000

• Tokens Bought: The investor receives approximately 6.62 million tokens.

• New Tokens in Pool: 980,000,000 - 6,620,000 = 973,380,000

• New Price: $148,000 / 973,380,000 = $0.000152

The price has increased as a direct result of the first purchase.

Step 3: A Second Purchase

Another investor buys $1,000 worth of the token.

• Real Capital Added: $1,000

• New Total Capital: $148,000 + $1,000 = $149,000

• Tokens Bought: The investor receives approximately 6.58 million tokens (slightly fewer than the first investor because the price is now higher).

• New Tokens in Pool: 973,380,000 - 6,580,000 = 966,800,000

• New Price: $149,000 / 966,800,000 = $0.000154