A bonding curve is a smart contract that automatically creates and destroys tokens according to pre-defined rules.
Ideamarket's bonding curve creates new tokens when people buy them, and destroy them when people sell them.
This means token supply is theoretically infinite, but the price to buy new tokens increases with the supply already in circulation.
Our bonding curve achieves a few important goals:
Provides liquidity. The bonding curve always has more tokens for sale, and will always buy back the tokens you sell to it at their current price.
Provides a level playing field. The bonding curve rules are the same for all tokens on Ideamarket.
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Below is a document describing the bonding curve math as used by Ideamarket in detail: