Augmented Bonding Curve
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 here.
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
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