EBM compels new buyers to make careful purchase decisions because they will lose money by selling at the fixed price. To make a wise purchase decision, new buyer must do more due diligence on the assets associated with the bonded tokens and truly believe in the high quality of those assets. In this process, new buyers become curators of the assets and payments of reserved tokens represent their stakes on the assets.
Introducing the Equilibrium Bonding Market
Fang Gong
5223

Fang, While I really like the article I think this section should be reviewed. If there is a minimum price to resell the chance of having loss is reduced, therefore, this might rather encourage buyers rather than discourage them from buying “any” token as their maximum loss is the difference between purchase price —mininum price that will always be less then the difference of purchase price and zero “zombie token”.

Diligence will not be made more carefully but rather less.

Like what you read? Give Balázs Némethi a round of applause.

From a quick cheer to a standing ovation, clap to show how much you enjoyed this story.