Augmented Bonding Curve
Continuous funding
Market accessibility
& lower volatility
Sustainable growth
The success of the ABC
The ABC has demonstrated notable success in our pilot with the Token Engineering Commons (TEC). By nature of the ABC’s design, the TEC’s token experienced low volatility compared to other small market cap tokens. As a result, while there has been a downward trend for small market cap DAOs, with token prices dramatically falling, $TEC’s price has kept pace with $ETH since its launch in 2021.
Regenerative funding
The ABC provides a mechanism to regeneratively fund a collective treasury via the tributes that are added to the common pool with every transaction.
By using the ABC, communities both establish liquid micro-economies and create a funding stream managed by the community. As an example, the TEC common pool received over $300,000 from tributes since its 2021 launch.
Predictable liquidity
The ABC is a primary issuance Automatic Market Maker (AMM), which is a price discovery tool for token ecosystems. It follows a predetermined price curve and has built-in liquidity, meaning it mints and burns tokens on demand.
As a result, token holders have access to liquidity without disruption across market shifts and can buy and sell without significantly affecting the token's overall value.
Value-aligned
The ABC provides unique additional features to a bonding curve including a closed initialization for value-aligned contributors, vesting, and tributes.
A “trust score” identifies who is eligible to invest early, and those who provide non-capital contributions such as labor and expertise are rewarded directly with tokens. Vesting curves prevent early exit and maintain that value alignment for the long term. Tributes penalize speculation and grow the common pool.
The ABC Simulator
Experiment with the Augmented Bonding Curve.
Change the Hatch variables to explore what continuous funding streams can do for your community.
This demo is for illustration purposes only, showcasing the ABC's capabilities.
