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{{KidsIntro|Imagine the very first people who help build a clubhouse get the best, fairest deal — and everyone can see exactly how that deal works. The Bonding Curve is the simple, public rule that decides how much early supporters pay, with no secret discounts.}}
{{KidsIntro|Think of the very first people who chip in to build something new: they take the biggest chance, so they get the best reward. The Bonding Curve is the clear, public math rule that gives early supporters more Rewards per franc, with no guessing and no secret deals.}}


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Wiki Core · Concept


== Bonding Curve ==
== The Bonding Curve ==
''Innovation — WikiDeal R&D''
 
Bonding Curve at a Glance


{| class="wikitable"
{| class="wikitable"
|-
|-
| Name || '''Bonding Curve'''
| Type
| Transparent algorithm
|-
| Purpose
| Reward generation from funding
|-
| Speculation
| ❌ None
|-
|-
| Origin || 🟠 Crypto / Token Economics
| Covered by
| Real expenses + subscriptions
|-
|-
| Category || Funding / Tokenomics
| Expert review
| [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call]]s (math experts)
|-
|-
| Status || Prototype 1 — In testing
| Early multiplier
| Up to ×100
|-
| Growth multiplier
| ~×30 at mid-stage
|-
| See also
| [[Gov/en/Portal:Economy/Rewards|Rewards Explained]]
|-
| See also
| [[Gov/en/Portal:Economy/Main|Why Fund WikiDeal]]
|}
|}


=== Why? What is it for? ===
The bonding curve is the core algorithm that converts funding contributions into Rewards. It is a '''transparent, defined algorithm''', not frozen (it can be updated through [[Gov/en/Portal:R&D/Open-Calls:Main|Open Calls]] with mathematical experts). Updates apply prospectively only: they never reduce rights already attributed at the moment of a contribution, but consistent and publicly documented. It ensures that early funders are rewarded for taking on the highest risk.
 
The bonding curve ensures early funders receive more Rewards per CHF, recognizing the risk they take when the platform is unproven.
 
=== How the Bonding Curve Works ===
 
The bonding curve relates the current funding reserve level to the Rewards generated per CHF contributed. The key principle: '''as the reserve grows, each CHF generates fewer Rewards'''. This rewards early participants and creates a natural, non-speculative incentive to fund early.
 
=== The Mathematical Formula ===
 
Rewards(CHF) = CHF × multiplier(R) Where multiplier(R) is a decreasing function of Reserve R: multiplier(R) = M_max × e^(-k × R) M_max = maximum multiplier (at R=0, e.g. ×100) k = decay constant (determines how fast multiplier drops) R = current reserve level (total CHF in fund) e = Euler's number (≈ 2.718...) Example at R=0 (first funder): CHF 1 → 100 Rewards Example at R=50,000 CHF (mid-stage): CHF 1 → ~30 Rewards Example at R=500,000 CHF (growth stage): CHF 1 → ~5 to 8 Rewards
 
⚠️ This calculation will be discussed in Open Calls by mathematical experts. The exact constants (M_max, k) are subject to community review and may be adjusted through the Open Calls process.
 
=== Text-Based Visualization ===
 
The relationship between reserve and multiplier (illustrative):


The ''Bonding Curve'' is a mathematical mechanism that sets the purchase price of WIL (WikiDeal Investment Licences). It answers a fundamental question: how can a project reward its earliest supporters fairly, without creating speculation or opacity?
Reserve (CHF) │ Multiplier (Rewards per CHF) ───────────────┼────────────────────────────── 0 │ ×100 ██████████████████████████ 5,000 │ ×80 ████████████████████ 20,000 │ ×50 █████████████ 50,000 │ ×30 ████████ 100,000 │ ×15 ████ 300,000 │ ×6 ██ 500,000+ │ ×2–5 █


On conventional commercial platforms, early investors often benefit from opaque terms negotiated behind closed doors. Here, the algorithm is public, immutable and identical for everyone. The more the platform raises, the smaller the multiplier (discount) becomes — so the earliest funders get the best value, in a transparent and predictable way.
=== Why a Bonding Curve? ===


This mechanism protects the community against two pitfalls: over-rewarding insiders, and devaluing later support. Trust is anchored in the mechanism itself, not in the promises of a management team.
The bonding curve solves a fundamental bootstrapping problem: how do you reward early funders fairly without creating speculation or securities law issues?


=== How does it work on WikiDeal? ===
* '''Early funders take the highest risk''' (platform unproven) → receive highest multiplier
* '''Later funders take less risk''' (platform established) → receive lower multiplier
* No external market price needed: the algorithm is self-contained
* No speculation: Rewards are not tradeable on open markets
* Transparent: everyone can see the curve and calculate their Rewards


In practice, each funding tranche raised corresponds to a step on the curve. In Prototype 1, the starting multiplier is high (a strong advantage for the earliest funders) and decreases progressively at each new step reached. The formula is written into WikiDeal's founding documents and cannot be changed unilaterally.
=== Relation to [[Gov/en/Portal:Economy/Rewards|Rewards]] and [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] ===


WIL purchased through the bonding curve are then converted into Cash Rewards (via the [[Gov/en/Portal:R&D/Innovations:Funding Stabilizer|Boost]] mechanism) and into [[Gov/en/Portal:Economy/Miles-Credits|Miles Credits]]. The mechanism interacts directly with the [[Gov/en/Portal:R&D/Innovations:Annual Value Increase|5% annual value increase]]: the nominal CHF value of Credits grows each year, regardless of when they were purchased on the curve.
The bonding curve determines the ''total'' Rewards generated. The [[Gov/en/Portal:R&D/Innovations:Need-Driven Funding|Need-Driven Funding]] then determines how those Rewards are split between [[Gov/en/Portal:Economy/Rewards|personal Rewards]] (P2) and the community pool. The bonding curve itself does not determine the Cash/Karma-token ratio: that is the Need-Driven Funding mechanism's job.


For funders, the bonding curve works as an explicit social contract: "here is exactly what you get, here is why, here is how it evolves." No surprises, no hidden clauses.
=== Transparency Commitment ===


=== Usage level and evolution ===
WikiDeal commits to publishing the full bonding curve formula, constants, and historical data. Community members can verify their Reward calculations independently. The formula is defined, not opaque, and any changes must go through an Open Call process with mathematical expert review.


This innovation will be tested as part of WikiDeal's Prototype 1. Its level of use and the precise deployment terms will be documented progressively as the platform evolves.
'''See also:''' [[Gov/en/Portal:Economy/Rewards|Rewards Explained]] [[Gov/en/Portal:Economy/Rewards|Rewards]] [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] [[Gov/en/Portal:R&D/Innovations:Need-Driven Funding|Need-Driven Funding]] [[Gov/en/Portal:Economy/Main|Why Fund WikiDeal]] [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call Guide]]


----
💡 '''Improve this concept''' — submit a proposal via [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call]]
'''See also:''' [[Gov/en/Portal:R&D/Innovations:Main|All innovations]] · [[Gov/en/Portal:R&D/Main|R&D Portal]] · [[Gov/en/Portal:Economy/Main|Economy Portal]]
[[Category:Migration June 2026]]
[[Category:Innovation]]
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