๐Ÿ”Bonding Curve

The bonding curve system automatically adjusts token requirements for different membership tiers based on market conditions. Here's how it works:

The key innovation is that token requirements adjust inversely to price:

  • When token price increases โ†’ required tokens decrease

  • When token price decreases โ†’ required tokens increase

For example, if the token price doubles, youโ€™ll need fewer tokens to maintain your tier.

๐Ÿ›ก๏ธ Built-in Protections

To ensure fair and stable adjustments, the system also applies:

โœ… Rate Limits:

  • Daily max change: 2%

  • Biweekly max change: 10%

โœ… Grace Periods:

  • Verified users have a 7-day grace period before losing a tier.

  • Users within 10% of the requirement retain their tier (if eligible).

โœ… Dual Qualification:

  • Users can qualify by either token count or USD value on holdings.

โœ… Exponential Decay for Smooth Adjustments:

  • The system uses exponential decay to adjust token requirements gradually based on price changes.

  • This ensures no drastic jumps when token price fluctuates.

โœ… Scaled Discounts:

  • Fee discounts increase as your holdings grow:

    • Basic: 15-25% discount

    • Standard: 30-50% discount

    • Premium: 60-75% discount

  • Role-based discounts override these if they offer better rates.

๐ŸŽฏ Why This Matters

This system ensures:

โœ” Loyal holders are protected โœ” Tier requirements adjust smoothly with price changes. โœ” New users can still enter at reasonable token amounts.


Graph Breakdown

  • Dashed lines represent token requirements decreasing when price increases.

  • Solid lines represent token requirements increasing when price decreases.

  • Each color corresponds to a different membership tier (BASIC, STANDARD, PREMIUM).

  • The black dotted line marks the target price ($1) where token requirements stabilize.


Formulas

When Token Price Increases (Requirements Decrease):

  • As the token price rises, the number of required tokens decreases towards the target minimum threshold using exponential decay:

Tnew=Ttarget+(Tpreviousโˆ’Ttarget)ร—eโˆ’kร—(PcurrentPtarget)T_{new} = T_{target} + (T_{previous} - T_{target}) \times e^{-k \times \left(\frac{P_{current}}{P_{target}}\right)}

Explanation:

  • Tnewโ€‹ โ†’ The updated minimum token requirement

  • Ttarget โ†’ The lowest possible token requirement for the tier

  • Tprevious โ†’ The last recorded minimum requirement before price changes

  • Pcurrent โ†’ The current token price

  • Ptargetโ†’ The price at which the tier requirement stabilizes

  • k โ†’ A decay constant (default: 2) that controls the rate of adjustment

  • eeโ†’ Eulerโ€™s number (โ‰ˆ 2.718), ensuring smooth decay

๐Ÿ”น Result: If the token price doubles, the requirement moves closer to the target minimum (e.g., BASIC tier moves from 2500 tokens toward 250).

When Token Price Decreases (Requirements Increase)

Tnew=minโก(Tstart,Tprevious+(Tstartโˆ’Tprevious)ร—eโˆ’kร—(1โˆ’PcurrentPtarget))T_{new} = \min \left( T_{start}, T_{previous} + (T_{start} - T_{previous}) \times e^{-k \times \left(1 - \frac{P_{current}}{P_{target}}\right)} \right)

Explanation:

  • Tstart โ†’ The initial token requirement before any price-based adjustments

  • Other variables remain the same as in the first formula.

๐Ÿ”น Result: If the token price drops, the system increases token requirements gradually but prevents extreme jumps.

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