> ## Documentation Index
> Fetch the complete documentation index at: https://docs.elata.bio/llms.txt
> Use this file to discover all available pages before exploring further.
# Bonding Curve Economics
> How app token pricing, trading, and graduation work
## Overview
Every app token trades on a bonding curve until graduation. Price is set by math — buy = price goes up, sell = price goes down. Early buyers get better prices.
***
## How Bonding Curves Work
A bonding curve is a mathematical formula that determines token price based on supply:
```
Price = f(Supply Sold)
```
As more tokens are purchased:
* Price increases according to the curve
* Early buyers get lower prices
* Later buyers pay higher prices
* Sellers receive the current curve price
***
## Key Parameters
| Parameter | Value | Description |
| --------------------- | ----------- | ---------------------- |
| **Launch Cost** | 110 ELTA | 100 seed + 10 fee |
| **Token Supply** | 1 billion | Total app token supply |
| **Creator Share** | 50% | Auto-staked at launch |
| **Curve Share** | 50% | Available for purchase |
| **Trading Fee** | 1% | Applied to all trades |
| **Graduation Target** | 42,000 ELTA | Triggers DEX listing |
***
## Token Distribution
At launch, the 1 billion tokens are split:
```mermaid theme={null}
pie title Token Distribution at Launch
"Creator (Auto-Staked)" : 50
"Bonding Curve (Public)" : 50
```
### Creator Allocation (50%)
* **500 million tokens** minted to creator
* **Automatically staked** in the staking vault
* Earns trading fees immediately
* Can be unstaked anytime (visible on-chain)
### Bonding Curve (50%)
* **500 million tokens** available for public purchase
* Price starts low, increases with demand
* Sold tokens remain in circulation
* Unsold tokens stay on curve until graduation
***
## Price Mechanics
### Buying Tokens
When you buy app tokens:
1. You pay ELTA to the bonding curve
2. Price is calculated based on current supply sold
3. **1% trading fee** is deducted
4. You receive app tokens at the curve price
**Example Buy:**
```
Want: 1,000,000 APP tokens
Curve Price: 0.00005 ELTA per token
Subtotal: 50 ELTA
Trading Fee (1%): 0.5 ELTA
Total Cost: 50.5 ELTA
```
### Selling Tokens
When you sell app tokens:
1. You send app tokens back to the curve
2. Current curve price determines ELTA received
3. **1% trading fee** is deducted
4. You receive ELTA
**Example Sell:**
```
Selling: 1,000,000 APP tokens
Curve Price: 0.00008 ELTA per token
Gross: 80 ELTA
Trading Fee (1%): 0.8 ELTA
You Receive: 79.2 ELTA
```
### Price Impact
Large orders affect the price:
* Big buys push price higher during execution
* Big sells push price lower during execution
* The curve ensures continuous liquidity
***
## Fee Distribution
The 1% trading fee is distributed automatically:
| Recipient | Share | Purpose |
| -------------- | ----- | --------------------------- |
| App Stakers | 70% | Rewards for staking |
| veELTA Holders | 15% | Protocol governance rewards |
| Treasury | 15% | Protocol development |
**Example**: On a trade with 1 ELTA fee:
* 0.70 ELTA → App token stakers
* 0.15 ELTA → veELTA holders
* 0.15 ELTA → Treasury
***
## Graduation
When the bonding curve accumulates **42,000 ELTA**, graduation triggers automatically:
### What Happens
1. **Liquidity Deployment**: ELTA + remaining tokens create a DEX pair
2. **LP Locking**: Liquidity tokens locked for **2 years**
3. **Free Trading**: Token now trades on decentralized exchanges
4. **Bonding Curve Closes**: No more curve trades
### Why 42,000 ELTA?
This target ensures:
* Sufficient liquidity for healthy trading
* Meaningful price discovery phase
* Protection against low-liquidity manipulation
### Post-Graduation
After graduation:
* Trade on DEX (Uniswap, etc.)
* Transfer fees (1%) still apply
* Staking rewards continue
* LP is locked (rug-pull protection)
***
## XP-Gated Early Access
New app launches include a **6-hour early access period**:
| Time | Who Can Buy |
| ------------- | ------------------------- |
| 0-6 hours | XP holders only (≥100 XP) |
| After 6 hours | Everyone |
### Why Early Access?
* **Rewards participation**: XP is earned through protocol engagement
* **Prevents sniping**: Bots can't front-run without XP
* **Fair distribution**: Real users get first access
***
## Price Growth Example
As tokens are purchased:
| Tokens Sold | Price (ELTA) | Market Cap |
| ----------- | ------------ | ----------- |
| 10M | 0.00001 | 10K ELTA |
| 50M | 0.00003 | 150K ELTA |
| 100M | 0.00005 | 500K ELTA |
| 200M | 0.0001 | 2M ELTA |
| 500M | Graduation | DEX Trading |
*Note: Actual curve parameters may vary*
***
## LP Locking
At graduation, liquidity pool tokens are **locked for 2 years**:
### What This Means
* Creator **cannot** remove liquidity
* Liquidity stays in the pool
* Protects against "rug pulls"
* Ensures long-term trading availability
### Viewing Lock Info
On your app's detail page:
* Lock address shown in Contract Addresses
* Unlock date displayed
* Verifiable on Etherscan
***
## Builder Economics
### Your Revenue Sources
As an app creator:
1. **Staking Rewards**: 50% stake earns proportional fees
2. **Token Appreciation**: If demand grows, your tokens gain value
3. **Items/Tournaments**: Additional revenue streams
### Example Scenario
```
Launch: 110 ELTA
Your stake: 50% of supply
Month 1 trading volume: 5,000 ELTA
Trading fees: 50 ELTA
Your share (as ~50% of stakers): ~17.5 ELTA
If app graduates and token 2x:
Your 500M tokens worth significantly more
```
***
## Advice
* **Most apps don't graduate** — focus on building something people want
* **Talk to your holders** — updates and engagement drive demand
* **Keep your stake** — unstaking is visible on-chain, signals you're leaving
* **Plan for graduation** — know what you'll do once you're on DEX
***
## Key Formulas
### Trading Fee
$$
F_{\text{protocol}} = P \times 0.01
$$
Where $P$ is the purchase/sale amount.
### Graduation Trigger
$$
\text{Graduate when } \sum \text{ELTA in curve} \geq 42{,}000
$$
### LP Lock Period
$$
\text{Unlock Date} = \text{Graduation Date} + 730 \text{ days}
$$
***
## Next Steps
Ready to launch? Follow the guide
Tournaments, items, and engagement