Gov/en/Portal:R&D/Innovations:Bonding Curve: Difference between revisions

{{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.}}

{{ExpertIntro|The Bonding Curve is a transparent algorithm intended to convert funding support into Rewards: the earlier the support, the higher the multiplier (up to ×100, around ×30 at mid-stage). It is non-speculative, publicly documented, and revisable prospectively through Open Calls with mathematical experts.}}

| Reward generation from funding

| [[Gov/en/Portal:Economy/Rewards|Rewards Explained]]

* [[#relation|Relation to Rewards and Karma tokens]]

The bonding curve relates the current funding reserve level to the Rewards generated per CHF of support. The key principle: '''as the reserve grows, each CHF generates fewer Rewards'''. This recognizes early participants and creates a natural, non-speculative incentive to support early.

For a supporter, the experience is simple: Anna supports with CHF 100 when the reserve is nearly empty and would receive far more Rewards per franc than Ben, who supports the same amount a year later when the platform is established. Both can verify their calculation themselves, because the formula is public.

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 the multiplier drops); R = current reserve level (total CHF in fund); e = [[wikipedia:E_(mathematical_constant)|Euler's number]] (≈ 2.718...). Example at R=0 (first supporter): 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.

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 █

The bonding curve addresses a fundamental bootstrapping problem: how to reward early supporters fairly without creating speculation or securities-law issues.

* No speculation: Rewards are not tradeable on open markets

* Transparent: everyone can see the curve and calculate their Rewards

* '''Supporters''' choose when and how much to support, and can verify their Rewards independently.

== Relation to Rewards and Karma tokens ==

The bonding curve determines the ''total'' [[Gov/en/Portal:Economy/Rewards|Rewards]] generated. The [[Gov/en/Portal:Economy/Need-Driven-Funding|Need-Driven Funding]] mechanism and the donor's own choice at donation time then determine how many of those Rewards the donor keeps and how much is left to the project as pure support (see the [[Gov/en/Portal:Economy/Rewards-FAQ|Rewards FAQ]] for the formulas currently proposed). [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] are a separate, non-convertible form of Rewards, documented on their own page; the bonding curve does not determine them.

WikiDeal intends to publish the full bonding curve formula, constants, and historical data. Community members would be able to verify their Reward calculations independently. The formula is defined, not opaque, and any change would go through an Open Call process with mathematical expert review. This reflects WikiDeal's broader aims of transparency, lower cost, flexibility and citizen participation.

'''See also:''' [[Gov/en/Portal:Economy/Rewards|Rewards Explained]] · [[Gov/en/Portal:Economy/Rewards-FAQ|Rewards FAQ]] · [[Gov/en/Portal:Economy/Need-Driven-Funding|Need-Driven Funding]] · [[Gov/en/Portal:Economy/Revenue-Structure|Revenue Structure]] · [[Gov/en/Portal:Economy/Karma-Tokens|Karma tokens]] · [[Gov/en/Portal:Economy/Main|Why Fund WikiDeal]] · [[Gov/en/Portal:R&D/Open-Calls:Main|Open Call Guide]]

[[Category:Migration June 2026]]