Tikko.me Bonding Curve

An exponential bonding curve model is employed within the Tikko.me system to establish the connection between token (referred to as "Pass" in this context) price and supply.

Users can acquire Pass's at the price specified on the bonding curve using collateral in TON. The bonding curve's valuation of the token is shaped by the processes of token minting (purchase) and burning (sale). As the supply of tokens on the bonding curve fluctuates due to minting and burning, it influences the price indicated by the bonding curve.

Advantages of Bonding Curves

1. Enhanced Liquidity: Bonding curves guarantee continuous liquidity, with the contract itself serving as a market maker, enabling seamless transactions for both buyers and sellers without the need for a counterparty.

2. Price Predictability: The predetermined shape of the bonding curve provides a layer of predictability, as participants can anticipate how alterations in supply will impact the price.

3. Equitable Distribution: The bonding curve for the initial distribution of shares can be viewed as a fair launch approach, commencing with the lowest possible price.

4. Fundraising: The region beneath the curve signifies the pool of funds managed by the smart contract. As more Pass are acquired, more funds are locked within the contract, which can be allocated for project development.

5. Stable Price Floors: Bonding curves have the capacity to establish intrinsic value for a Pass, ensuring that Passes can consistently be redeemed at the present price point on the curve, thereby creating a built-in price floor.