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Getting familiar with the Commons configuration
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The Augmented Bonding Curve (ABC)

The Augmented Bonding Curve (ABC) is the main economic engine by which we will provide a constant flow of funding to the Commons’ Initiatives. In this module you’ll be tasked to design an ABC which will be the primary market where TEC tokens are bought and sold.

The magic of the Augmented Bonding Curve is that whenever a buy or sell order takes place on its market a percentage is sent directly to the Common Pool. The percentage taken immediately in wxDAI from buy orders to the curve is the Entry Tribute. Conversely, the percentage taken from sell orders is the Exit Tribute. This means that for every action on the curve the Commons receives funding to advance Token Engineering.

The ABC funds two pools:

The Common Pool holds funds that will be used for realizing the initiatives of the TEC.

The Reserve backs the value of TEC tokens as they are bought and sold on the ABC. When tokens are bought on the curve the price of TEC goes up, when they are sold the price goes down.

During the Commons Upgrade a percentage of the total funds raised from the Hatch is sent to the Common Pool to kick-start the Commons’ projects. This percentage is the Commons Tribute.

You decide:

  • What percent of hatch funds will go to each pool
  • The tribute taken from buy and sell orders
  • The opening price at which TEC tokens can be minted

If you need more information please check the links below:

Entry Tribute & Exit TributeCommons TributeOpening Price & Reserve Ratio