Bonding Curve
Bonding Curve Prices
Once an initial price is set by the promise maker or briber, subsequent bid prices increase on a bonding curve.
The incremental price increase makes sure the previous bidder always gets their full bidding price back, while earning a profit from the price increase.
Promises
First Bidder
The first bidder snipes the promise and pays the initial price. 95% of the initial price goes to the creator and 5% of the initial price goes to the protocol.
Subsequent Bidder
As soon as there is a subsequent bidder stealing the promise away from the previous bidder, the previous bidder gets their full bidding price back, as well as a profit of 45% of the increase in price.
Creator
Whenever there is a subsequent bidder, the creator earns a profit of 45% of the increase in price.
Bribes
First Briber
The first briber deposits the initial price. If the bribe is eventually accepted, 95% of the initial price will go to the creator and 5% of the initial price will go to the protocol.
Subsequent Briber
As soon as there is a subsequent briber stealing the bribe away from the previous briber by depositing a higher amount, the previous briber will get their full bidding price back, as well as a profit of 45% of the increase in price if the bribe is eventually accepted.
Bribee (Creator)
Whenever there is a subsequent briber, the bribee will earn 45% of the increase in price if the bribee eventually accepts the bribe.
If the bribee rejects the bribe, or if the bribe expires, all bidders will get their original amount back and the bribee will not earn.
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