# Tangible Social Capital

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.

<figure><img src="https://70330851-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FYncCfcJYzN317UcCRwNC%2Fuploads%2FIgZjtq96ilxMqblXWuh5%2FSigmoidal%20Bonding%20Curve.png?alt=media&#x26;token=eed61c9e-02ac-4ec3-9cc1-040cc04ec131" alt=""><figcaption><p>Example of a sigmoidal bonding curve</p></figcaption></figure>

**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.&#x20;

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.&#x20;

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.&#x20;

**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.&#x20;

**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.&#x20;

**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.&#x20;

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.