Bonding Curve and Graduation

What is a Bonding Curve?

A bonding curve is an algorithmic pricing mechanism that determines the price of a token based on its supply. Instead of setting a fixed price, the token price increases as more tokens are purchased and decreases as they are sold. This creates a transparent and predictable price discovery process.

How the Bonding Phase Works

In the case of OkieDokie launchpad, each token commences trading at ~$3,000 market cap (assuming $OKB is priced at $100) and graduates when ~$50,000 market cap is reached (500 $OKB and assuming $OKB is priced at $100)

• Starting MC: ~$3,000

• Graduation MC: ~$50,000

• Fee: Every buy or sell during this phase incurs a 1% transaction fee

Graduation

As soon as 500 $OKB is collected in the bonding curve, the token graduates. Graduation marks the transition from the bonding curve to the open market. Here’s what happens:

• Liquidity Migration: 100 $OKB and 20% of the tokens will be allocated to create a liquidity pool on OkieSwap

• Fee: Instead of the 1% transaction fee applied during the bonding process, transaction fee will be lowered to 0.25%