Billy Rennekamp
1 min readSep 2, 2018

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> At the current stage of research, bonding curves have no mechanism to become dynamic, or change their curvature based on external inputs or new information.

That’s not quite true. In the Bancor Formula used for TBC the price is calculated by the relationship between the collateral pool, the token supply and a constant between 0 and 1 that they call the “connector weight”. The connector weight defines the type of curve so that a CW of 1/3 is a curve of f(x) = mx²+b and a CW of 1/2 is a curve of f(x) = mx+b and a CW of 1 is a curve of f(x) = b.

While the CW stays constant, the values of the collateral pool and token supply define the m and b of those curves. By sending more collateral to the contract without increasing the token supply you would dynamically alter the price graph. Furthermore special circumstances could be designed so that the collateral could be removed or tokens could be minted without increasing the collateral (like inflation). These would also alter the price curve dynamically.

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