⤴️Bonding Curve

Bonding Curve Mechanism

The NINJA World platform implements a linear bonding curve mechanism for each mini-world's token economy, providing a transparent, fair, and liquidity-assured method of token distribution and price discovery.

Allocation and Structure

• 20% of each mini-world's total token supply is allocated to the bonding curve.

• Total tokens in bonding curve: 200 Million

• Curve type: Linear

• Average token price: $0.005

Functionality

The bonding curve operates as an automated market maker (AMM), allowing for continuous token liquidity without the need for traditional order book matching. Key features include:

1. Continuous Availability: Tokens are always available for purchase or sale through the curve.

2. Price Determination: The token price increases linearly as tokens are purchased and decreases as they are sold back to the curve.

3. Predictable Pricing: The linear nature of the curve ensures a predictable price trajectory, beneficial for both short-term traders and long-term holders.

Economic Implications

• Market Cap Contribution: The bonding curve tokens contribute $1 million to the mini-world's overall $5 million market cap target.

• Early Adoption Incentive: Lower initial prices incentivize early participation in the game's economy.

• Liquidity Guarantee: The curve ensures constant liquidity, crucial for a healthy token economy.

Trading Mechanics

1. Purchase: Users can buy tokens directly from the curve at any time. The price increases with each purchase according to the linear function.

2. Sale: Users can sell tokens back to the curve, decreasing the price accordingly.

3. Price Range:

   • Starting price: $0.001

   • Ending price: $0.01

   • Average price: $0.005

Transition to Open Trading

Once a network reaches its milestones (60% Airdrop distributed, 20% Boding Curve sold out), tokens become tradable on a decentralized exchange on TON.

The bonding curve mechanism in NINJA World is designed to create a balanced, transparent, and liquid token economy from a mini-world's inception through to its maturation, aligning the interests of early supporters, active community members, and investors.