Arena DAO Docs
  • 👋Introduction
    • What is Arena DAO?
    • Why create the Arena DAO?
    • How to get started?
    • How to withdraw?
    • Contributor Guideline
  • 🏆The Arena Architecture
    • Arena Core
    • Payment Registry
    • Escrow
    • Competition Modules
      • Wagers
      • Leagues
      • Tournaments
    • Competition Enrollment
  • 🪙SubDAOs
    • Arena DAO Gladiators (ADG)
    • Arena Fortnite Creators
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  • Arena DAO's Transition to ABC
  • ABC Configuration for Arena DAO
  • Phases of the ABC
  • ABC Visualized
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  1. SubDAOs

Augmented Bonding Curve

Last updated 7 months ago

An Augmented Bonding Curve (ABC) is an advanced financial mechanism used in decentralized finance (DeFi) to create and manage sustainable token economies. It builds upon traditional bonding curves, incorporating additional features to ensure a more robust and balanced ecosystem.

For a deep dive into ABCs, check out these resources:

The implementation can be found .

Note: The tokenomics described below are subject to change before the official launch of the Arena token. Please refer to our official communications for the most up-to-date information.

Arena DAO's Transition to ABC

Initial Phase: Membership-Based DAO

Arena DAO will start as a membership-based organization, focusing on building a strong community foundation and establishing decentralized governance frameworks.

Transition: Token-Based Model

As we grow, we'll transition to a token-based model using the ABC, which will automate token supply management and align incentives between the DAO and early contributors.

ABC Configuration for Arena DAO

  • Token: ARENA

  • Total Supply: 1,000,000 tokens

  • Pricing Model: Square-root curve with USDC

Token Distribution

  • Founder: 200,000 tokens (20%)

  • Arena Gladiators: 50,000 tokens (10%)

  • DAO Treasury: 350,000 tokens (35%)

  • Open Phase Mint: 400,000 tokens (40%)

Phases of the ABC

1. Hatch Phase

  • Total Allocation: 600,000 tokens (60% of total supply)

  • Participants: Founder, Arena Gladiators, Arena DAO

  • Exclusivity: Only approved contributors can participate

  • Key Features:

    • Initial token distribution to core team and early supporters

    • Establishes the foundation for the DAO's token economy

    • No public trading or liquidity at this stage

2. Open Phase

  • Available for Minting: 400,000 tokens (40% of total supply)

  • Entry Fee: 99.995% (directly funds DAO treasury)

  • Exit Fee: None

  • Key Features:

    • Public participation begins

    • Continuous token minting based on the bonding curve

3. Closed Phase (Future Consideration)

  • Purpose: Potential mechanism for graceful shutdown or transition

  • Key Features:

    • Allows only selling of tokens into the curve

    • No new minting permitted

    • Potential complete liquidation mechanism (not currently on roadmap)

ABC Visualized

🪙
Deep Dive: Augmented Bonding Curves
Continuous Organizations
here
Charts on right side