scp94373
8 months ago  Karma: 152
Token Bonding Curves

Dear all,

I'm wondering if someone can clear up confusion for me about Bonding Curves, it's a new thing I'm looking into, what I can't get my head around is the whole minting/burning as needed and the price.
So the more that people buy this token, the more than it's worth, which is like every other crypto token out there, however their circulating supply is ever increasing until a max supply, whereas from my understanding this token method... the circulating supply starts as 0 until people start buying, then they are 'minted' or burned when sold.

Then there is the reserve ratio, my understanding goes that all the money that has been used to buy this token goes into a Pool, then when the user wants to 'sell out' using this smart contract, they can only get a certain proportion of money back, or people can only sell out when the reserve ratio is above the set value??

This is where I get confused. I've looked at various articles and I feel like I'm so close to understanding the whole model but I get a mental block when I get to this point.

Thanks.

en
#question
scp94373
8 months ago  Karma: 152
Token Bonding Curves

Dear all,

I'm wondering if someone can clear up confusion for me about Bonding Curves, it's a new thing I'm looking into, what I can't get my head around is the whole minting/burning as needed and the price.
So the more that people buy this token, the more than it's worth, which is like every other crypto token out there, however their circulating supply is ever increasing until a max supply, whereas from my understanding this token method... the circulating supply starts as 0 until people start buying, then they are 'minted' or burned when sold.

Then there is the reserve ratio, my understanding goes that all the money that has been used to buy this token goes into a Pool, then when the user wants to 'sell out' using this smart contract, they can only get a certain proportion of money back, or people can only sell out when the reserve ratio is above the set value??

This is where I get confused. I've looked at various articles and I feel like I'm so close to understanding the whole model but I get a mental block when I get to this point.

Thanks.

en
#question

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