The Bonding Curve

A bonding curve is a smart contract-based mechanism that determines the price of a coin based on its supply. This curve allows coins to be bought or sold at a price defined by a mathematical function. For this project, the bonding curve plays a critical role in coin distribution and liquidity management.

Coin Allocation Overview:

1. Deployer Allocation:

   • 2% of the total coin supply will be allocated to the deployer who set up the contract, these coins are locked until Uniswap trading is live. This allocation acts as compensation or an initial reserve for the creator of the project.

2. Uniswap Liquidity Pool Reserve:

   • 20% of the total coin supply will be reserved to be added to the Uniswap liquidity pool (LP). This ensures sufficient liquidity when the coin becomes tradable on Uniswap.

3. Trading on the Bonding Curve:

   • 78% of the total coin supply is set aside for trading on the bonding curve. This is where the initial trading activity will occur before the coin is launched on a decentralized exchange like Uniswap.

4. Locked Coins: All coins are locked for transfers until the Community Coin goes live on Uniswap to prevent bots, gaming of the DAO, and other bad actors. You can always sell back into the bonding curve, you just cannot transfer the Community Coins to another wallet.

Transition from the Bonding Curve to Uniswap:

The bonding curve mechanism will continue until one of the following conditions is met:

1. 78% of the coins are sold through the bonding curve.

2. A proposal for launching the coin Uniswap is executed through the voting process.

3. The 87% timer expires, counting down from a 4-hour mark, and at that time, there is more than 67% of the supply in the curve.

ETH and Coin Allocation:

• Once any of these conditions are triggered, 80% of the ETH accumulated in the bonding curve will be deposited into Uniswap along with 20% of the initial coin supply to establish a liquidity pool.

Deactivation of the Bonding Curve:

• After the coin is launched on Uniswap and the liquidity is established, the bonding curve mechanism is turned off. Future trades will occur directly on Uniswap, with the coin's price determined by market supply and demand on the exchange.