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.
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.
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:
The Fair Launch
100%of the token supply is sold via a bonding curve until a$50,000market cap is achieved.
Automated Migration
Upon reaching the
$50,000cap, the bonding curve sale automatically closes, and migration to the DEX begins.
Liquidity Pool Creation
94%of the raised funds, along with an equal proportion of the tokens, will be used to seed the liquidity pool on the DEX.This pair is deposited into the Firestarter DEX, establishing the token's initial liquidity pool.
Permanent Liquidity (Rug-Pull Prevention)
To make the initial liquidity permanent,
94%of the corresponding Liquidity Provider (LP) tokens on the bonding curve are immediately burned.This prevents the creator or platform from withdrawing the liquidity, securing the market.
Fund Allocation
The remaining
6%of capital is allocated as follows:5%to the Protocol Treasury: Funds platform development, security, and$ANLOGtoken buybacks.1%to the Creator: A milestone reward vested over seven days to prevent market impact.
Example Scenario: How Price Changes
A bonding curve automatically prices a token based on a simple formula:
Price=Total_Capital_in_PoolTotal_Tokens_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:
980,000,000Calculation:
Initial Price×Tokens on Curve=Virtual Capital OffsetResult:
$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:
$1,000New Total Capital:
$147,000(Virtual) +$1,000(Real) =$148,000Tokens Bought: The investor receives approximately
6.62 milliontokens.New Tokens in Pool:
980,000,000-6,620,000=973,380,000New 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:
$1,000New Total Capital:
$148,000+$1,000=$149,000Tokens Bought: The investor receives approximately
6.58 milliontokens (slightly fewer than the first investor because the price is now higher).New Tokens in Pool:
973,380,000-6,580,000=966,800,000New Price:
$149,000/966,800,000=$0.000154
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