Tangible Social Capital
Last updated
Last updated
Bonding curves provide a decentralised pricing and revenue mechanism for All-Access' fans, where the price of tokens or membership passes automatically adjusts based on supply and demand through a predefined algorithmic curve.
The sigmoidal bonding curve has specific properties that align well with the objectives of creating a sustainable and fair pricing model for memberships.
The Benefits Of Our Design
Capping Membership Value: Ensures a proper threshold for price discovery. As the number of memberships sold approaches a limit, the price asymptotically approaches a cap.
This cap prevents membership prices from skyrocketing to unsustainable levels, maintaining affordability and accessibility while still allowing for price appreciation as demand grows.
Sustainable Revenue Generation: Facilitates sustainable revenue generation through user churn. As members join and leave, the price of memberships adjusts along the curve, generating revenue with each transaction.
This dynamic pricing model ensures a continuous revenue stream for the platform, which can fund operations, reward creators, and reinvest into the ecosystem to further enhance the value proposition.
Fair Pricing: The automated, algorithm-driven pricing ensures that membership prices are fair and transparent, based on real-time demand and supply dynamics. It eliminates the possibility of price manipulation and provides a clear, understandable pricing mechanism for all stakeholders.
Incentivising Early and Loyal Members: Early adopters and loyal members benefit from lower initial prices and the appreciation of membership value as demand grows.
This approach rewards early and ongoing engagement, fostering a loyal and vibrant community.
Balanced Economy: Prevents extreme price volatility, ensuring a stable and predictable economic environment that is conducive for long-term growth and sustainability.
Predictable Economic Model: The predefined nature of the sigmoidal bonding curve enables a predictable economic model, where the platform, promoters, and members can make informed decisions based on a transparent pricing mechanism.
Utilisation of Reserves: By allocating token reserves in yield-generating DeFi protocols, AAA can generate additional income, bolstering the platform's financial stability and sustainability.
This approach facilitates compounded growth of reserves, reinvestment in the ecosystem, and and heralds a new age of revenue innovation in the live events industry.