What is a Bonding Curve?
A Bonding Curve is a pricing function that ties a token’s price directly to supply. Instead of an order book, every buy/sell talks to a smart contract that mints/burns along the curve. Price moves smoothly — not in cliffs.
When people buy
Supply increases, and the price steps up along the curve. Payments add to on-chain reserves — asset backing from day one.
When people sell
Tokens are burned, supply decreases, and the price steps down the same curve — gradual, math-driven, dump-resistant.
Think of a self-balancing scale: every buy adds weight to reserves and tips price up; every sell removes weight and price eases down.
[+] Learn the Math Behind the Price
For clarity, consider a simple linear function:
P(S) = a·S + b
- P(S) — price at total supply S
- a — slope (how quickly price rises)
- b — base price when supply is zero
Minting ΔS tokens (from S₁ to S₂) costs the area under the curve:
Cost(ΔS) = ∫S₁S₂ P(S) dS
This preserves backing in the contract reserve, giving NDG a built-in price floor.
