šŸ§‘ā€šŸ«Price of Bits

The bonding curve is subject to final changes before the launch of BSD Gambit.

The price of Bits is determined by a dynamic function. This allows the reward of early buyers as they identify skilled players sooner than others. The price of a gamer's Bit (in ELS) follows the function:

p(n)=floor(nāˆ—104)32āˆ—106+F(V)p(n) = {\cfrac{floor(\sqrt{n*10^{4}})^3}{2*10^6}} + F(V)
s(n)=floor((nāˆ’1)āˆ—104)32āˆ—106+F(V)s(n) = {\cfrac{floor(\sqrt{(n-1)*10^{4}})^3}{2*10^6}} + F(V)
F(V)=DMI=C+(Dāˆ’C)āˆ—(1āˆ’1V)F(V) = DMI = C + (D -C) * (1 - {\cfrac{1}{V}})

In the above formula, p(n) or s(n) represents the purchase or selling price of a player's Bit denoted in ETH, where:

(1) n represents the circulating number of Bits of the gamer,

(2) F(V) is a dynamic function that sets the starting price of the gamer's Bits, which is only relevant for new gamers who have not yet sold any Bits.

F(V) is a dynamic growth function, which we label as dynamic market index (DMI), which sets the starting price of the first Bit in circulation and converges to 10 (ELS) in the limit:

(1) C is a constant set at 1 and represents the floor,

(2) D is a constant set at 10 and represents the ceiling,

(3) V is the total volume from trading Bits in the entire protocol over the past week and is denoted in ETH volume.

Bonding Curve of Bits

Below is a visual representation of the first 50 Bits of a player. Each net purchase of a bit increases the supply or total Bits in circulation.

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