Token Bonding Curve Offerings
In their short history, token allocation events have seen a rapid evolution. Following the first issuance of BTC, the ICO hype of 2017 and the ongoing adoption of digital securities, a new form of token generation ensures transparency and alignment of interests.
Token bonding curves are smart contracts that provide tokens using buy and sell functions, thus creating their own market. The price for each token increases as tokens are bought from the contract and decreases as they are sold back. So in effect, a trade is determined by the average price of each token in the transfer batch and the amount of tokens on the market.
Investors can sell back tokens at any time, as the contract is 100% collateralised at all times and the contract autonomously creates an instant market, essentially giving buyers control over the project and team.
Token Bonding Curves are sustainable, transparent and fair, as they effectively distribute governance, align interests between team and community, ensure accountability and incentivise early adopters, community development and usage of the governance token long-term.
“In an [Autonomous Token Distribution, …] risks are minimised, requiring both the developer and the vote to be compromised to cause any real damage.” — Vitalik Buterin — Eth Research
The DIA Bonding Curve Offering
In our view, a bonding curve offering implements the most efficient way of matching supply and demand, as well as most transparent price identification for the DIA Governance Token. The bonding curve will be the first distribution of tokens apart from early contributors of DIA, data validators that gained DIA tokens via Gitcoin for their work and input on our open-source database and are the cornerstone of the DIA community.
DIA Association chose a ‘sigmoid bonding curve’ to remunerate the early adopters and investors who truly care about the DeFi ecosystem and disincentivise speculators who want to profit from the price increase who we expect to only discover the project at a later stage of the bonding curve sale. The DIA bonding curve is the first mechanism we leverage to decentralise governance of the DIA Association.
Conscious about the infancy of this distribution mechanism and its positive influence on the industry we want to contribute by publishing our smart-contact source code, share openly our learnings and to be beneficial to the entire ecosystem.
Details on DIA Bonding Curve Offering
- Maximum supply (Hard Cap) for circulation: 30M DIA Tokens — 15% of total DIA supply. Non-sold tokens will be burned.
- Start: 03.08.2020, 3pm CET
- End: 18.08.2020, 3am CET
- Duration: ≈14 days
- Initial price: USD 0.05
- Buy/sell spread: 1%
- Currencies: ETH, DAI, USDC
- Restricted jurisdictions: US, Iran and additional
This information is not investment advice. Please read the full disclaimer before investing.