⤴ī¸Bonding Curve
Bonding Curve Mechanism
The NINJA World platform implements a linear bonding curve mechanism for each game's token economy, providing a transparent, fair, and liquidity-assured method of token distribution and price discovery.
Allocation and Structure
20% of each game's total token supply is allocated to the bonding curve.
Total tokens in bonding curve: 200 Billion
Curve type: Linear
Average token price: $0.000005
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:
Continuous Availability: Tokens are always available for purchase or sale through the curve.
Price Determination: The token price increases linearly as tokens are purchased and decreases as they are sold back to the curve.
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 game'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.
Interaction with Gameplay Tokens
The bonding curve operates independently of the 60% of tokens minted through gameplay.
It provides an alternative acquisition method for investors and players seeking early involvement.
Trading Mechanics
Purchase: Users can buy tokens directly from the curve at any time. The price increases with each purchase according to the linear function.
Sale: Users can sell tokens back to the curve, decreasing the price accordingly.
Price Range:
Starting price: [Specific value to be determined]
Ending price: [Specific value to be determined]
Average price: $0.000005
Integration with the Overall Token Economy
The bonding curve mechanism plays a crucial role in the initial stages of a game's token economy:
It provides price discovery before the full minting of gameplay tokens.
Contributes to reaching the $5 million market cap milestone.
Offers a stable economic foundation before the transition to open market trading.
Transition to Open Trading
Once a game reaches its milestones (60% token minting, 10,000 TON liquidity, $5M market cap), tokens become tradable on decentralized exchanges like DeDust.io. The role of the bonding curve post-transition will be determined based on specific game economics and community decisions.
The bonding curve mechanism in NINJA World is designed to create a balanced, transparent, and liquid token economy from a game's inception through to its maturation, aligning the interests of early supporters, active players, and investors.
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