Bonding Curve

BioDAOs may conduct a constant product bonding curve sale that runs until the fully diluted valuation (FDV) target is reached.

If the FDV target is reached, the sale closes and funds raised (e.g., in ETH or SOL) are transferred to the BioDAO’s treasury.

Pricing

• In a bonding curve raise, users can trade tokens continuously with a smart contract.

• The bonding curve is parameterized with a fully diluted valuation (FDV) target.

• The price of the BioDAO token increases exponentially along the curve as more tokens are purchased (reflecting increasing demand).

• Users can sell their tokens back to the curve at any time, which decreases the BioDAO token price.

• The token remains non-transferrable during the sale.

• The bonding curve remains open indefinitely until the FDV target is reached.

Successful Raise

In the event of a successful bonding curve sale:

• Auction participants (Funders) can immediately trade their BioDAO tokens with the deployed AMM.

• BIO Curators receive their discounted BioDAO tokens once their Curation lock completes. These discounted BioDAO tokens are subject to a vesting schedule that starts from the time of the sale closing. In the initial batch of BioDAOs, vesting for Curators is set to 6-months, with a 3-month cliff.

Curator Discount

• In the initial batch of BioDAO auctions, Curators are offered the starting valuation of the bonding curve.

• For example, in the Example Bonding Curve Parameters below, if the target FDV of $6.25M is achieved, the bonding curve sale would close and Curators would receive vesting BioDAO tokens at $1M FDV.

Note that a BioDAO's bonding curve sale remains open indefinitely until the target FDV is reached. Meaning, even if the BioDAO doesn't reach its target FDV within the initial 60-day Curation lock-up period, funders can still close the bonding curve at any time, and new BIO Curators can come along and fill the BioDAO's Curation threshold (with no lock-up).

Example BioDAO Allocation Breakdown

Allocation Buckets	Allocation (%)
Bio Protocol	6.90%
Core team	20.00% (1 year cliff, 3 year vest)
BIO Curation	5.00%
Bonding Curve	20.00%
Community Treasury	48.10%
Totals	100.00%

Example Bonding Curve Parameters

Auction Parameters	Value
Total SOL raised	~2082.03
Number of tokens sold	200,000,000.00
Total supply	1,000,000,000.00
Price per SOL ($)	240.15
Total USD Raise ($)	$500,000
Initial valuation (BioDAO FDV)	$1,000,000.00
Final Valuation (BioDAO FDV)	$6,250,000.00
Initial BioDAO token reserves	333,333,333.33
Initial (virtual) token reserves	~1,388.021