Bonding curve explanation

Here's how it works on RainAI:

• Basic Concept:

  • The price of tokens increases as more tokens are purchased

  • The price decreases as tokens are sold

  • This relationship follows a mathematical curve, ensuring smooth and predictable price movements

• How It Works:

  • Every token starts at a base price of 0.000000001 ETH

  • Each buy/sell action affects the price according to the formula: x*y=k

    • Buying tokens moves up the curve, increasing the price

    • Selling tokens moves down the curve, decreasing the price

  • When selling, users receive funds from the reserve based on their position on the curve

  • The price of tokens increases as more tokens are purchased, creating a bonding curve based on the amount bought and sold. When the bonding curve reaches 100%, which means that 3.5 ETH has been raised for approximately 777 million tokens, the remaining amount of around 223 million tokens will be paired with the raised funds (after deducting fees) to be listed as LP on a decentralized exchange (DEX). After that, the token can continue to be traded on the DEX platform

  • Fees include:

    • 0.022 ETH to the token dev's wallet.

    • 0.102 ETH to RainAI’s admin wallet.

    • x amount automatically deduced when listed to a DEX

When the token reaches the 1.75 ETH milestone (reaching 50% of the bonding curve) it will dethrone the current “Trending Token” and will stay there until there is another token reaches 1.75 ETH.