The Augmented Bonding Curve is a modified token bonding curve that generates continuous funding for any type of DAO. The concept was introduced by Dr. Michael Zargham and introduces three new components to the traditional bonding curve contract: a common pool, a token lockup mechanism, and inter-system feedback loops. The ABC also enables the circular, regenerative flows of value within the organizations that promote economic sustainability.
When to use
Bonding curves are especially helpful in low-liquidity environments (as could be expected for a local non-profit cause, for example). The ABC enables communities to create fully liquid micro-economies that provide alternative, incentive-aligned funding streams for important collective resources.
How to use
The ABC enables communities to create their own token ecosystems that drive group behavior toward common goals, and gives users the power to design the incentive mechanisms that will shape their organization by:
- Determining the initial value of the token and the impact of the tokenholders on the community.
- How long to keep tokens frozen.
- The rate at which tokens become liquid.
- The opening price of the token.
- Constructing the funding system and the primary market for the token
- What percent of capital funds will go to funding the organization.
- The tribute taken from buy and sell orders.
- Deciding how to modify the economic and governance settings post-upgrade.
- Voting settings.
- The amount of time Delegates are allowed to vote.
- How long to listen for a change of outcome.
- The amount of time that can be added for voting.
- Determining the governance architecture to request funds for the upcoming initiatives.
- How much of the Common Pool’s funds can be requested by a single proposal.
- How many tokens are needed to pass a proposal.
- The rate at which conviction voting accumulates.
What you get
The ABC allows communities to build their own token ecosystems to drive group behavior toward common goals, and it gives users the power to design the incentive mechanisms that will shape their community. It can be thought of as a hybrid of crowdfunding and polycentric governance over communal funds that are effectively allocated to achieve community goals.
More info and resources
Current conversations about the topic:
One Stop Shop Bonding Curve Course
I think, in principle, that the course is a good idea. I have three comments that I would like to share: Courses are an extremely valuable part of a traditional engineering education, because they include not only (open loop) presentation of the concepts, but also (closed loop) feedback on how well someone understands the material. They include experiences which are objectively verifiable, as well as opportunities for open discussion and reflection, giving the learner a sense of embodied confi...
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