/biz/ - Business & Finance

>>19826786
Yeah but where do you see the problem sir regarding the bonding curve.

The ICO is in no doubt the biggest fail since eth inception. Especially we see an entire inequality in allocation of token amounts. Bonding curves offer the option the get the fair value.

Spoonfeeding on:
„ Tokens are bought and sold according to a “bonding curve” — an equation that defines the token price as a function of token supply. It’s like having a market that’s just determined by the software.

At any point in time, a token holder can sell their token back into the pool, burning the token, and taking out a proportional amount of ETH.

When you buy tokens into a curve what you are doing is you’re for example sending DAI or ether into this curve and this curve is minting new tokens for you, and so what happens in the other way around, is you sell these tokens and then you get part of these reserves out in ether or DAI or whatever the reserve ratio is defined in, and so that’s how bonding curve works and it’s very exciting because you can, in the case of Aragon fundraising, get rid of centralized exchanges.

Bonding curves can help anchor or influence the “time value” of participation in the network, helping projects overcome the issues of initial hype and demand as well as sustaining continued support from their communities. The value of the network is more naturally tied to interest. Networks are allowed to grow and die naturally.“
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