DIA Insights
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DIA Insights

DIA’s Autonomous Bonding Curve Distribution

DIA, the open-source DeFi oracle platform will distribute the DIA Governance Token through a Bonding Curve Distribution, starting August 03, 2020 at 3pm (CET) to key DeFi market actors and the broader DeFi and blockchain ecosystem.

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

READ UP ON BONDING CURVES HERE.

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.

Illustration of different bonding curves.

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
  • Price 0.05–7 USD
  • Buy/sell spread: 1%
  • Currencies: ETH, DAI, USDC
  • Restricted jurisdictions: US, Iran and additional

Further Links

This information is not investment advice. Please read the full disclaimer before investing.

About DIA

DIA (Decentralised Information Asset) is an open-source, financial information platform that utilises crypto economic incentives to source and validate data. Market actors can supply, share and use financial and digital asset data.

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Updates and insights about the developments on DIA — A cross-chain, end-to-end, open-source data and oracle platform for Web3.

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DIA is a multi-chain, end-to-end, open-source data and oracle platform for Web3.

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