> For the complete documentation index, see [llms.txt](https://enter.ninjaworld.games/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://enter.ninjaworld.games/ecosystem/bonding-curve.md).

# 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.