Bonding Curve

Every token created on mew.gg has a fixed total supply of 1 billion. Out of which a maximum of 800 million are put on sale on the platform, and the other 200 million are locked. The purpose of selling 800 million tokens is to raise 20000 SAGA, which will later be used to give real-world value to your token. Bonding Curve is a mathematical concept that defines the relationship between the price and supply of a token. Unlike traditional cryptocurrencies or meme coins, where prices are often volatile and set by external market forces, bonding curves use mathematical formulas to determine token prices in a structured and transparent manner.

As more and more tokens are bought, the price of the token goes up, and more SAGA is deposited in the bonding curve.

Once the bonding curve is completed (i.e., filled with 20000 SAGA), the tokens are said to be bonded, and they can be put on the Oku Dex with the liquidity that has been raised and the remaining 200 million tokens (out of 1 billion). Now the token is tradable on the Oku Dex on the Saga blockchain. This gives the token some real-world value.

A typical bonding curve of a token on Mew.gg

You can track the progress of the bonding curve of any token on mew.gg on the token details page. The bonding curve shows the percentage that is filled at the moment. Underneath that, you can also see how much SAGA is in the bonding curve and how many tokens are available for sale.

NOTE -

The bonding curve will go up as more and more tokens are bought, and it goes down as more and more tokens are sold.

Bonding curve math

The bonding curve on mew.gg works similarly to many popular automated market makers (AMMs) like Uniswap, Oku Dex, etc., based on the constant product formula.

X × Y = K

Constant product formula

Where -

• x is the amount of tokens in the bonding curve (initially 1 billion)
• y is the amount of SAGA raised in the bonding curve
• k is a constant.