💠Bonding Curve

Last Updated: 2025/2/14

Supply vs Price

The Spotlight Protocol utilizes a bonding curve mechanism based on an exponential function to determine the value of assets as they are purchased or sold. The function that drives this mechanism is:

$$y = A * e^{x*B}$$

Where:

• y is the resulting price in terms of $IP.

• A is a constant that sets the base value of the curve, influenced by the protocol's settings and initial conditions.

• x is the input variable, typically representing the amount of the token supply that are minted.

• B is the parameter that determines the steepness of the curve, influencing how the value changes as x increases.

Key Points

1. Initial $IP Reference:

   • The initial reference price of the asset (referred to as $IP) is set at $2. This acts as the baseline price before market dynamics come into play.

2. Dynamic Parameters Based on Market Conditions:

   • The parameters A and B may change based on market conditions. Will have the announcement in advance.

   • This dynamic adjustment ensures that the bonding curve adapts to reflect the economic environment and maintain equilibrium within the protocol's ecosystem.

Token Supply

• Total Supply: 1B

• 80% of the token supply is allocated to the bonding curve.

• 20% of the token supply will be added to PiperX DEX once the bonding curve reaches a certain threshold.

Bonding Curve Info

• Current $IP Price Reference

IP Price reference	$6
Create token fee	0.1 $IP
listing token fee	200 $IP
Initial FDV	$4200
Graduation FDV	$69,000
Liquidity on Bonding Curve	~ 3089 $IP

• Tokens before 2025/3/3 05:30 UTC +0

The IP price reference will remain at $2 for the tokens created before March 3, 2025, 05:30 UTC. Please exercise caution when purchasing tokens.

IP Price reference	$2
Create token fee	0.1 $IP
listing token fee	600 $IP
Initial FDV	$4200
Graduation FDV	$69,000
Liquidity on Bonding Curve	~ 9266 $IP

The token before: 0x85382819A9a9F696AD8BFB875B64800CeFC3e4DC (We will have clear indication in the following update)