Bonding Curve Explanation

Overview

RainPump’s token pricing is based on a bonding curve model, which ensures that token prices dynamically adjust based on buying and selling activity. This model provides smooth, predictable price movements, rewarding engagement and creating opportunities for strategic investment. Here’s a breakdown of how the pricing mechanism works.

How the Bonding Curve Model Works

1. Basic Concept

   • Price Increase: The price of tokens rises as more tokens are purchased.

   • Price Decrease: The price of tokens drops as tokens are sold.

   • Smooth Adjustments: A mathematical curve controls these changes, enabling stable, predictable price shifts.

2. Pricing Mechanism Details

   • Starting Price: Every token begins at a base price of 0.000003450 USDT.

   • Price Formula: The relationship between price and token quantity is governed by the formula x * y = k, ensuring that each buy/sell action moves the price up or down along the bonding curve.

   • Buying Tokens: Increases the token price by moving further up the curve.

   • Selling Tokens: Decreases the token price by moving back down the curve, with users receiving funds from the reserve pool based on their position on the curve.

3. Full Bonding Curve (100%) Milestone

   • When the bonding curve reaches 100% (equivalent to 12,000 USDT raised for approximately 777 million tokens):

     • The remaining 223 million tokens will be paired with the raised funds (after fees) and listed as a Liquidity Pool (LP) on a decentralized exchange (DEX).

     • This enables further trading of the token on the DEX.

4. Fee Distribution

   • Token Dev Wallet: 75 USDT is allocated to the token developer's wallet.

   • RainPump Admin Wallet: 350 USDT goes to RainPump’s admin wallet.

   • DEX Listing Fee: Additional fees are deducted automatically when listed on the DEX.

5. "King Of The Sky" Milestone

   • At $6,000 USDT raised (50% of the bonding curve), the token achieves "King Of The Sky" status, marking a significant achievement in market engagement and attracting community interest.

Key Points to Remember

• Dynamic Price Adjustment: The bonding curve model ensures prices adjust based on buying/selling activity.

• Significant Milestones: The $6,000 milestone recognizes tokens with notable participation, while the 100% bonding curve milestone triggers DEX listing.

• Fee Structure: Fees support both development and platform maintenance.