Bonding Curve

    Bonding curve smart contracts are a way to cultivate a balanced supply and demand. A bonding curve is a mathematical concept that describes the relationship between an asset’s price and supply. Bonding-curve smart contracts enable selling to investors by calculating the token/coin price in an asset such as bitcoin (BTC) and issuing the asset after payment, while also retaining the ability for investors to repurchase the asset. When a user purchases a limited-quantity asset through a “bonding curve” contract, each subsequent buyer must pay slightly more for the asset.